The EU has retreated from a plan to fund its own budget with a tax on Big Tech, after coming under pressure from the US. EU economy commissioner Paolo Gentiloni announced the bloc’s change of strategy after meeting with US Treasury Secretary Janet Yellen in Brussels on Monday. The US agreed to come back on board with the OECD talks earlier this year, on the condition that the tax covered all multinationals and not just Big Tech. Finance Minister Paschal Donohoe said Ireland would continue to participate in the OECD process, which is expected to wind up before October’s G20 leaders’ summit. However, the move could remove the benefits of locating in Ireland, depending on what kinds of reliefs and allowances are included in the tax base.

Source: Irish Independent July 12, 2021 13:29 UTC