Ireland has stepped up its campaign against digital tax proposals from the European Commission in a joint submission with three other states, warning that the proposals breach international treaty obligations. Several major digital companies have already warned that the proposals will see them taxed twice on the same revenue. “Given the potentially far-reaching political, economic and legal consequences of introducing a tax at EU level that is not in line with tax treaties,” the joint submission says. The Commission’s digital tax proposals, issued in March, involve an interim 3 per cent tax on gross revenues or turnover rather than profits. If the Commission fails to gets its digital tax directive through, many member states have pledged to introduce unilateral measures to raise money from digital companies activities on their territories.

Source: The Irish Times October 07, 2018 15:00 UTC