The French parliament will consider an amendment to the budget law for 2017, which obliges international corporations to pay taxes on their real earnings in the country. Otherwise the tax on their profit will by increase by 5% from the current 33%. The author of the amendment is MP Yann Galut, called the proposal a French version of the so-called Google Tax, which is taxation system of hidden profits, which already operates in the UK and Australia.
“The giants of the IT sector and fast food, as well as other corporations hide their profits through various mechanisms, to the detriment of the interests of the French State, local companies and French citizens”, says MP, Yann Galut.
Currently the most major international companies represented in the country, pay taxes in Ireland – where the rate is 12.5%. That are companies like Google, Apple, Facebook, Amazon, McDonald’s, Airbnb, Starbucks and etc.
According to evaluation of the former minister of digital technologies in France, Google must pay French income tax at least 200 million EUR, but the real company pay taxes of only 4-5 million EUR.
In case of persistent deviation from paying taxes, the French MP Yann Galut offers tax rate on profits to be increased by 5% for such companies. According to deputies, annually French state is deprived of up to 1 billion EUR, as a result of the so-called tax optimization of international companies. The new legal change might take effect from 2018, as the Committee on Finance of the lower house of French Parliament will examine it on November 10.
more recommended stories
China Reports Robust Economic Growth, While Risks Continue to Mount
China’s National Bureau of Statistics has.
What next for US-Europe trade policy?
The economies of Europe and the.
How the Fed Changes the Size of Its Balance Sheet: The Case of Mortgage-Backed Securities
In a previous post, we considered balance.
When PIIGS Fly
Leaders in their respective countries may.