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Technology giants face European 'digital tax' blow
Big technology firms face paying more tax under plans announced by the European Commission. It said companies with significant online revenues should pay a 3% tax on turnover for various online services, bringing in an estimated €5bn (£4.4bn). The proposal would affect firms such as Facebook and Google with global annual revenues above €750m and taxable EU revenue above €50m.
The move follows criticism that tech giants pay too little tax in Europe. EU economics affairs commissioner Pierre Moscovici said the "current legal vacuum is creating a serious shortfall in the public revenue of our member states". He stressed it was not a move against the US or "GAFA" - the acronym for Google, Apple, Facebook and Amazon. According to the Commission, top digital firms pay an average tax rate of just 9.5% in the EU - far less than the 23.3% paid by traditional companies.
(Score: 0) by Anonymous Coward on Thursday March 22 2018, @06:21PM (1 child)
All the EU need to do is make cross border, high interest, intra-company loans for the purposes of tax avoidance illegal. They could easily do this by making it unlawful to charge interest above commercial rates. Turnover taxes are retarded and will ultimately hinder the process of continual investment.
(Score: 0) by Anonymous Coward on Saturday March 24 2018, @03:17AM
Why, I see turnover tax as a way to stop monopolies and allow space for growth and operation for smaller companies. It is the mechanism to discourage a behemoth to grow and grow infinitely. You might call it success, I call it monoculture and I do not want it.