Digital tax, all the news between the USA, France and the Eurogroup

Digital tax, all the news between the USA, France and the Eurogroup

The Trump administration will announce commercial retaliation against France in the event of the collection of the digital tax on US technology companies by Paris

"We will announce sanctions against France, but we will suspend their application" until France postpones the imposition of the digital tax on US technology companies. This was stated by US trade representative (USTR), Robert Lighthizerm according to Reuters reports, referring to US retaliation against France on the web tax.

At the beginning of the month, the Trump administration shook EU member countries by abandoning talks within the OECD for the definition of a new global tax on digital companies. But France warned it would go ahead with a digital tax on tech giants this year.

For the United States, the French tax discriminates against US tech giants such as Google, Facebook and Apple.

In the meantime, the new president of the Eurogroup , the Irish Economy Minister Paschal Donohoe, has been elected , who has a clear idea about the digital tax.

Here are all the details.

WHAT THE USA REPRESENTATIVE SAID

During an online event, Lighthizer stated that the US will announce the sanctions but will suspend them until Paris starts collecting taxes this year.

The retaliatory actions are related to a US Section 301 investigation of the French digital tax.

WITHDRAWAL FROM OECD NEGOTIATIONS ON THE WEB TAX

As we said, the United States abandoned multilateral talks last month to reach a global solution on the taxation of digital services. The decision followed a letter sent to the finance ministers of Italy, France, Spain and the United Kingdom, published by the Financial Times. In the letter, the Secretary of the United States Treasury, Steven Mnuchin, declared to suspend the negotiations because they had reached a "dead end".

DUTIES ARRIVING FOR FRENCH GOODS

An industry source told Reuters that the US Trade Representative (USTR) office could impose duties on French goods worth around $ 500 million.

After concluding that the French tax would harm US tech companies, in December the UTR had declared punitive duties of up to 100% on $ 2.4 billion of imports from France, including goods such as Champagne, bags and cheeses.

But in January, the United States and France had paused their battle over digital taxation, agreeing instead to participate in OECD talks.

WEB TAX ON THE AGENDA OF G7 AND G20

According to Reuters , we will return to the issue of a global tax on digital giants at the G7 and G20 meetings in the coming weeks.

WHAT THE NEW HEAD OF THE EURO GROUP THINKS

In the meantime, the new president of the Eurogroup , Irish Economy Minister Paschal Donohoe, has been elected . Just last week, the Irish finance minister had spoken out on the digital tax. "I am actually optimistic about our ability to make progress in this area within the OECD," said Donohoe in an interview with CNBC.

"I think it's important to change the way we tax digital societies," said Donohoe. However, adding that the implications of making changes in this area represent a "real concern".

IRELAND, APPLE AND TAXES

Indeed, it should not be forgotten that Ireland was one of the few countries to vote against an EU-wide digital tax in 2018. Dublin pushed for a broader agreement with other nations beyond the European level by supporting the OECD talks.

Ireland also hosts some major US technology companies, such as Apple and Amazon based in Dublin. Just next July 15, the EU court ruling is expected on the appeal of the technology giant Apple against the 13 billion euro fine for unpaid taxes in Ireland. In 2016, the European Commission fined Apple for having enjoyed illegal tax advantages granted by Dublin.

Apple and Ireland, whose economy benefits from the hospitality of several multinational companies, filed an appeal against the EU decision last September. "I think that no matter what the sentence is, this case will almost certainly be dismissed with an appeal from one side or the other to the European Court of Justice," said Deputy Prime Minister Leo Varadkar.


This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/digital-tax-tutte-le-novita-tra-usa-francia-ed-eurogruppo/ on Fri, 10 Jul 2020 11:56:15 +0000.