After global big tech tax fails, France looks to EU for help

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The French Prime Minister is bringing the battle for a digital tax to the EU, since countries like India and the US have blocked the global deal.

The Organization for Economic Cooperation and Development (OECD) represents a global push for digital tax reform surrounding tech giants. However, the tax reform named Pillar One has encountered numerous roadblocks.

According to a report from Bloomberg, French Prime Minister Le Maire claims that the US, Saudi Arabia, and India have blocked the OECD's proposed tax deal. This has led to the Prime Minister calling on the EU to take charge.

"We'll call for the situation on Pillar One to be unblocked, but the chances of success are slim," Le Maire said Monday. "This calls for a digital tax to be extended to a European level as soon as possible."

Talks of a digital tax have been going in some form or another since 2018. France wanted to tax Google, Apple, Facebook, and Amazon in order to close loopholes used by the companies, but it was ultimately put off during trade negotiations with the US in 2020.

Then, the OECD announced a new global tax initiative backed by 137 governments. This international agreement has been through the wringer and ultimately was blocked, as the French Prime Minister pointed out.

It isn't clear if the EU will act on France's pleas, though it seems eager to regulate big tech in any way it can. France could also reawaken it's own digital tax push that was postponed in 2020 in favor of the OECD deal — though not without opposition from the US.

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