there will not be a “Google tax” for the moment in France. Integrated with the finance bill 2017, the article was rejected by the Constitutional Council. Following the example of several neighboring countries who have tried, sometimes successfully, to impose laws to the web giants to block tax evasion, the law could allow the French State to win between 500 million and 1 billion euros.
A law is too specific ?
The “Google tax” here was the emanation of an amendment to the mp PS Yann Galut, its aim was to tackle the “diversion-of-profits ” made “ at the expense of the State, public services, local businesses, competitors, and citizens ” by “fast food giants ” and ” internet “.
The Sages believe that the State should not have ” the power to choose the taxpayers who should or should not fall within the scope of application of the tax on companies “. In a more clear way, the commission considers that there cannot be two categories of taxation, one at 33% and the other at 38%, for the enterprises according to the desire of the tax administration. A response is not really satisfactory for Yann Galut : ” I’m angry, because it is a decision that is incomprehensible ! That keeps in the state a scandal tax : the multinationals pay only 3 % corporate tax through complex arrangements when our SMES pay 30 % ! “
Several countries have already tried
This is the second time that an amendment to the giants of the web is retoqué in France. The first time in 2014, the goal was to force them to declare their tax optimization schemes to the administration. Among our european neighbors, Spain had the back facing the shutdown of Google News. It is in the United Kingdom that the tax works for the moment. A tax of 25% has been established on the profits diverted from the multinational companies.
so It is back to square one for proponents of a Google tax in France. It will resume the legislative process from scratch, either push for tax harmonization in europe. The two seem to be now very compromised.
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