This has put the two countries at loggerheads with the United States, which has expressed concern that US internet companies are being unfairly targeted in broad push to update the global corporate tax code. Big internet companies say they follow tax rules but have paid little tax in Europe, typically by channelling sales via countries such as Ireland and Luxembourg, which have light-touch tax regimes. Britain and France have been arguing for a so-called “digital tax,” saying corporate tax codes are no longer fair in the age of the large-scale provision of services and the sale of consumer data over the internet. The US government has expressed concern in the past that the European push for a “digital tax” unfairly targets US tech giants. Earlier this year, countries and territories agreed a roadmap aimed at overhauling international tax rules, which have been overtaken by development of digital commerce.–Reuters

Source: The Irish Times June 08, 2019 09:44 UTC