European Union: Companies like Apple bounce the company for revenue
“The European Union plans to increase taxation on major Internet companies like Apple or Google later this month.” People have no understanding that large corporations are using tax loopholes and bouncing society off revenue, “said EU Economic Commissioner Pierre Moscovici of the Neue Osnabrücker Zeitungon Thursday, “Therefore, on March 21, we will present proposals for fairer taxation of digital companies, especially for the giants of the Internet.”
Currently there are tax losses in the EU “in countries where multinational corporations have real activities but often have little or no physical presence,” Moscovici said. Companies like Apple, Google or Facebook are currently taxing “only about nine percent of their profits in Europe, the conventional economy but 23 percent,” said the Economic Commissioner. That has “nothing to do with justice”. He is “optimistic that this will change,” he added. The European Commission will then “work internationally through the OECD.”
According to this, Brussels intends to use taxation factors such as “the amount of revenue from digital transactions, the number of users of a digital platform or the volume of data collected by users via a digital platform”. The aim is to “close the most serious gaps in our corporate tax systems in digital taxation,” said Moscovici. At the same time, unnecessary burdens on businesses should be avoided through a patchwork of national measures in the internal market.
Germany, France, Italy and Spain had proposed in September to tax Internet companies in the future by revenue and not by profit. The aim is to prevent corporations from downsizing profits in Europe or shifting them to low-tax countries and leaving the treasury largely empty-handed.
It was not until Monday that the finance ministers of Germany, France, Italy, Spain and the United Kingdom, supported by the EU Commission, had sent a letter to the G20 presidency. In it, they urged an urgent discussion on the taxation of Internet giants at the G20 Finance Ministers Meeting on 19 and 20 March in Buenos Aires.
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