The French government is preparing a bill on the taxation of multinationals with a turnover of more than €750 million, such as Google, Amazon, Facebook and Apple.
By the end of February for consideration of the French government will be submitted a bill on the taxation of multinational technology companies, especially those that are part of the “big four” — Google, Amazon, Facebook and Apple, said in an interview with Le Journal du Dimanche, the Minister of economy and Finance of France Bruno Le Mayor. For the four companies invented special abbreviation consisting of the first letters of their names — GAFA, UNIAN reports.
According to him, the tax “will affect all companies that offer digital services and have a turnover of more than €750 million worldwide and €25 million in France”. The Minister called for the taxation of international companies “the challenge of the XXI century” and “a matter of justice”. The government intends as soon as possible to send the bill to the Parliament. It is expected that due to the new tax the French budget will annually receive an additional €500 million a year.
In addition, Le the Mayor promised to fight tax evasion by initiating the revision of the international tax rules. He said lawmakers should “follow the money, which for the purpose of tax evasion go where they shouldn’t be”.
We will remind, at the end of June 2017, the European Commission in the framework of the antitrust case, fined Google €2.4 billion for abuse of dominant market position in search engines. In the Commission came to the conclusion that Google violated European Union rules by granting an advantage to its shopping service, Google Shopping to search for products using the search engine Google.
According to the European Commission, Google has significantly lowered the rankings of competing services, and their proposals were displayed not on the first search page, and the fourth and beyond. In 2016, the UK authorities have forced Google to pay to the Treasury of £130 million in compensation for the taxes. British tax authorities considered that by registering a company in Ireland, Google has implemented “aggressive” tax avoidance. Authorities have accused the Corporation of immoral behavior, as in 2013, for example, Google paid only £20.5 million in taxes, despite receiving in the UK, revenues in excess of $5.6 billion.
In November 2018 the Council of the European Union stated that it would develop Corporation tax in the field of information services, which is also known as the “Facebook tax”. The Deputy head of the European Commission budget Valdis Dombrovskis called on then to solve this issue as soon as possible, as individual EU States can impose such taxes independently at the national level. According to him, it may have a negative impact on the single market of the European Union.
Prior to this, the European Commission has prepared a draft digital tax that should be levied at 3% on income of companies in the EU countries, including multinational operating in the field of digital technologies. Their annual turnover should exceed €750 million.