The view is that digital multinationals can play member states against each other to get the best tax deal
French President Emmanuel Macron (L) is greeted by Estonian Prime Minister Juri Ratas during arrivals for an EU Digital Summit in Tallinn, Estonia on Friday, Sept. 29, 2017. The European Union is looking beyond its impending breakup with Britain at how to build a common future with the 27 nations remaining in the bloc. (AP Photo/Virginia Mayo), photo: AP/Virginia Mayo
29 of September 2017 14:12:26
TALLINN – There's a groundswell of support in the European Union to make sure that digital U.S. giants pay more taxes on their lucrative business in Europe, French President Emmanuel Macron said Friday.He said he already counted 19 of 28 nations in support of plans for continent-wide fiscal rules on taxing major internet companies. Ireland disagreed with the proposal and said many Nordic countries had joined it in opposition.The issue came to a head last year when the EU ordered Ireland to collect a record 13 billion euros ($15.3 billion) in taxes from Apple Inc., arguing that it had profited from a system allowing it to escape almost all taxes the EU felt were due."Today the market is dysfunctional. It is not normal that companies make excessive profits and pay nothing in taxes," Macron said, painting a situation where the giants of industry were able to profit in Europe and small startups suffered because of it.
The plan for a tax system that should hit U.S. tech companies harder will be coming up at EU ministerial meetings later this fall and EU Commission President Jean-Claude Juncker said he was convinced a deal would emerge.The view is that digital multinationals can play member states against each other to get the best tax deal, leaving them with huge profits and extremely low taxes."We are in a tough situation because of the competition between European nations on this. It is a schizophrenic situation and not common sense," said Belgian Prime Minister Charles Michel."Within a short timeframe, it profits them, but it is a short-term vision. If we need a future strategy, we need to look at more harmonization," he said.
We have to work globally to ensure tax fairness - companies should pay their taxes where their real economic activities take place pic.twitter.com/QwP8wpTyut— Valdis Dombrovskis (@VDombrovskis) 29 de septiembre de 2017