Moscovici says internet giants do not pay their “fair share” of tax

TIAGO PETINGA

European Union Commissioner for Economic and Financial Affairs, Taxation and Customs Union, Pierre Moscovici attends a press conferencein Lisbon, Portugal, 18 November 2016.

Moscovici says internet giants do not pay their “fair share” of tax


Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn
+

Pierre Moscovici told CNBC that American internet giants do not pay their “fair share” of tax.

In an interview on Monday, the EU Commissioner for Economic and Financial Affairs, Taxation and Customs said that internet companies must be taxed like the classical economy. In doing so, he joined the “big four” – Italy, France, Germany, and Spain – in a debate that has polarized Europe.

The Estonian Presidency is putting forward a proposal that will see the taxation of a company’s virtual presence in any member state. The main objective is to tax economic activity rather than allow companies to avoid taxation be taking advantage of various loopholes in the member states they are incorporated.

Towards this end, Commissioner Moscovivi promised new legislation within 2018, although Ireland and Luxembourg are staunch opponents of such a development.

The European Commission is proposing a cluster of measures that will increase the tax burden for companies such as Google, Facebook, Airbnb, Amazon, and Uber. Google paid less than 1% of total EU tax revenue between 2013 and 2015; during the same period, Facebook paid 0,1% while Amazon paid nothing, Reuters reported on Sunday.

Share on Facebook
Share on Twitter
Share on Google+
Share on LinkedIn
+