And so it begins....EU to tax tech giants at 'two to six percent': France

Catalpast

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Yes Folks France wants this imposed

There is not even a suggestion that they will not get their way :|

The EU will soon unveil a plan for taxing major internet companies like Amazon and Facebook by imposing a levy of two to six percent on revenues in every country where they operate, French finance minister Bruno Le Maire said on Sunday.
"The range will be from two to six percent; but closer to two than to six," Le Maire told the Journal du Dimanche newspaper
...

The European Commission has said it will present by end March an overhaul of its tax rules, which currently allow US digital economy giants to report their income from across the bloc in any member state.

That leads them to pick low-tax nations like Ireland, the Netherlands or Luxembourg, depriving other nations of their share of the revenue even though they may account for more of a company's earnings.
https://www.thelocal.fr/20180304/eu-to-tax-tech-giants-at-two-to-six-percent-france


I thought our tax regime was sacrosanct?

And yet Leo seems to be in under the impression that we are an equal partner in the EU!:roll:

Europa Conventus Delenda est
 


Niall996

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I don't think it's a contradiction. If an Irish manufacturing company sells goods in other European markets, then there is VAT and Excise duties going to the local government. If a US tech company, say Facebook sell adverting to local French companies targeting French consumers where is the local tax take to the French government in the sale of that good or service? Everyone agrees there needs to be an overhaul of some sort to deal with the modern tech suppliers and it can happen without Ireland having to alter it's sovereign tax laws.
 

gleeful

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So France will tax Google & co a sales tax. Will that impact Ireland? I dont see the problem - these companies will still need an EU base and they will still prefer Ireland over France for that base.
 

Catalpast

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So France will tax Google & co a sales tax. Will that impact Ireland? I dont see the problem - these companies will still need an EU base and they will still prefer Ireland over France for that base.
Why would they favour a base for all of the EU

- on an offshore island?
 

Niall996

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So France will tax Google & co a sales tax. Will that impact Ireland? I dont see the problem - these companies will still need an EU base and they will still prefer Ireland over France for that base.
Unless they can define how much profits Google make in the EU overall and then spread the tax pro rata across all the markets. There are a lot of other reasons for US companies to base in Ireland though.
 

Niall996

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Why would they favour a base for all of the EU

- on an offshore island?
Language and culture are extremely important. Being located in a place where a) you have a workforce and b) ex pats want to travel are factors. Tax and costs trumps everything though, no doubt about it. I think whatever tax is proposed would apply wherever they base themselves though.
 

Catalpast

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Language and culture are extremely important. Being located in a place where a) you have a workforce and b) ex pats want to travel are factors. Tax and costs trumps everything though, no doubt about it. I think whatever tax is proposed would apply wherever they base themselves though.
Come back in 10 years after this goes through and I don't think their Euro HQs will still be on an offshore island....
 

Watcher2

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I don't think it's a contradiction. If an Irish manufacturing company sells goods in other European markets, then there is VAT and Excise duties going to the local government. If a US tech company, say Facebook sell adverting to local French companies targeting French consumers where is the local tax take to the French government in the sale of that good or service? Everyone agrees there needs to be an overhaul of some sort to deal with the modern tech suppliers and it can happen without Ireland having to alter it's sovereign tax laws.
It's a contradiction if individual countries don't have autonomy in its imposition.
 

asset test

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I would give anyone a medal for setting up a business in France for starters. Their bureaucracy is totally unreal, for anything really but especially for business.

If you don't believe me, look it up. On the outside they are oh so sophisticated and chic, but dig a bit and they are the Neanderthals of Europe, with due respect to our ancestors.

I love France and the French but they are totally out of the loop.
 

Dame_Enda

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The Irish tax rate is a perpetual punching bag in French and German elections. What can they do about it? In theory theres a veto but they can pressure us by threatening to withhold EU funds - though as we are a net contributor its not as serious a threat as in the 1980s.
 

gleeful

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The Irish tax rate is a perpetual punching bag in French and German elections. What can they do about it? In theory theres a veto but they can pressure us by threatening to withhold EU funds - though as we are a net contributor its not as serious a threat as in the 1980s.
This sounds like an additional sales tax, not a standardisation of corporation tax. Irelands nominal profit tax will still be lower than France.
 

Windowshopper

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Absolute nonsense by the OP calling for the EU to be destroyed. The companies whose profits he wants to protect are here because of the single market.

On France's proposal, it's just that for a moment. The Irish strategy should be if possible to come to a solution that allows member states to claw back some revenue yet maintain Ireland's competitive advantage. Anyway in the larger picture everyone loses by allowing multinationals to advoid tax the way they do.
 
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gleeful

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Absolute nonsense by the OP calling for the EU to be the EU to be destroyed. The companies whose profits he wantd to protect are here because of the single market.

On France's proposal, it's just that for a moment. The Irish strategy should be if possible to come to a solution that allows member states to claw back some revenue yet maintain it's competitive advantage. Anyway in the larger picture everyone loses by allowing multinationals to advoid tax the way they do.
Indeed. And remember that France is the nation of multiple overlapping and contradictory taxes. They once applied a per gigabyte tax on computer hard disk. It quickly meant that no one bought hard disks in France anymore but had to mail order them from Belgium. The French just shrug and find a way to avoid it.
 

asset test

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This sounds like an additional sales tax, not a standardisation of corporation tax. Irelands nominal profit tax will still be lower than France.

What would happen if we refused to apply this surcharge? Hard Border or something. We are minnows but everyone hates us for our low CT rate. Feck them.

Luxembourg is the place to watch, but wait! Junker the Drunker is from there. I have yet to understand the origins of the wealth of that place and it is so tiny too.
 

brigg

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Sleeveen Irish fumbling at our greasy tills.
We'll see how slavishly pro-EU the Irish political class really are if our notorious tax regime is finally confronted. Similarly, if CAP payments were ever threatened the mood would change very quickly in this country.
 

gleeful

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What would happen if we refused to apply this surcharge? Hard Border or something. We are minnows but everyone hates us for our low CT rate. Feck them.

Luxembourg is the place to watch, but wait! Junker the Drunker is from there. I have yet to understand the origins of the wealth of that place and it is so tiny too.
If it somehow became enforceable we could always allow companies to write off payments under this tax against their corporation tax dues.
 

Aghalissabeagh

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What would happen if we refused to apply this surcharge? Hard Border or something. We are minnows but everyone hates us for our low CT rate. Feck them.

Luxembourg is the place to watch, but wait! Junker the Drunker is from there. I have yet to understand the origins of the wealth of that place and it is so tiny too.
The tax proposal, which is likely to happen means the FANGs will pay tax on their profits in each individual country, not export it to Ireland to lower their tax, so Ireland not applying it makes no real difference.

However, apart from that, it now looks looks likely that the next round of EU budget funding will be linked to implementation and adherence to EU regulation. So in the event that it was in Irelands interest not to implement the tax, the EU could/would withhold funds allocated to Ireland.
 


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