“France is working with Germany and other partners to plug loopholes that have allowed U.S. tech giants like Alphabet Inc.’s Google, Apple Inc., Facebook Inc. and Amazon.com Inc. to minimize taxes and grab market share in Europe at the expense of the continent’s own companies,” Francois De Beaupuy, Caroline Connan, and Geraldine Amiel report for Bloomberg.
“France will propose the ‘simpler rules’ for a ‘real taxation’ of tech firms at a meeting of European Union officials due mid-September in Tallinn, Estonia, French Finance Minister Bruno Le Maire said in an interview in his Paris office on Friday, complaining that Europe-wide initiatives are proving too slow,” De Beaupuy, Connan, and Amiel report. “The push reflects mounting frustration among some governments, regulators and, indeed, voters, at the way international firms sidestep taxes by shifting profits and costs to wherever they are taxed most advantageously — exploiting loopholes or special deals granted by friendly states.”
“Germany and France discussed tax issues at a joint cabinet meeting last month and Germany can be expected to discuss specific proposals after its national election on Sept. 24, Denis Kolberg, a finance ministry spokesman, told reporters in Berlin on Monday,” De Beaupuy, Connan, and Amiel report. “[French] President Emmanuel Macron… is renewing a broader call for the 19 euro-area states to better align their tax systems. Le Maire said that Macron’s pledge to lower corporate taxes to 25 percent by the end of his five-year term should be seen as an opening gambit in this process. He urged countries with lower tax rates to raise them.”
Read more in the full article here.
MacDailyNews Take: It’ll be interesting to see where these proposals — especially the idea of tax harmonization across the 19 euro zone members — lead, if anywhere.
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