The G20 has set a deadline for a two-prong tax crackdown on tech giants, which could hit companies like Apple, Amazon, Facebook, Google and Uber. The 20 members have agreed to put in place by 2020 measures to stop international companies using tax loopholes to pay less tax than locally-based companies.
One of the arrangements used by Apple has been cited as an example of this type of loophole… Apple’s Irish arrangement – now no longer used – was an example of a common tax avoidance measure used in Europe by a number of tech giants.
Despite being a G20 member, and signing up to this agreement, the US is threatening to retaliate against Europe, which has promised to take its own measures against the type of tax avoidance described.
US Treasury Secretary Steven Mnuchin has said the US “has significant concerns with the two current taxes that are being proposed by France and the UK”.
The technology industry has warned that the White House may take serious measures against any tax crackdown. Jennifer McCloskey, vice president of policy at the Information Technology Industry Council, a trade association headquartered in the US capital, said any taxes perceived to be discriminatory against American companies could face an investigation.
MacDailyNews Take: We’re sure all additional tax dollars confiscated will be spent oh so wisely.