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The EU may soon introduce a "Tech Tax" bill

The 'Tech Tax' is said to be around 2-6% on the revenue of tech giants

The EU may soon introduce a

The EU may soon introduce a "Tech Tax" bill

One of the biggest problems with major technological giants like Apple, Amazon is the fact that they often pay less tax than they should, funnelling profits into other countries to take advantage of a lower tax rate or to conduct other tricks to avoid paying their fair share. 

For a long time, Amazon has been famous for funnelling their profits through Luxemburg to minimise taxation and Apple are still fighting an EU commission, and Apple is continuing to challenge an EU ruling that will force them to pay $13 billion in tax in Ireland. The main problem here is that the tax money is rarely going to the country where their goods, services or products are sold, effectively conning governments across the world from tax money.  

This problem is set to be solved by an EU "Tech Tax", which does not tax a company's products but their revenue in the nations where their products are sold. In an interview with Le Journal du Dimanche (JDD), France's Minister of the Economy has stated that the EU is close to announcing legislation that would introduce a "Tech Tax" of 2-6%, though this value is set to be at the lower end of this scale. This tax will be on a company's revenue within each state that they operate in, making the tax easy to calculate and harder to avoid. Even so, this tax will be much lower than the corporation tax that tech giants are frequently accused of dodging. 

  

The EU may soon introduce a

 

Right now this new tax is rumoured to be announced within the coming weeks, though it is likely that this ruling will be challenged by affected companies, who will insist that their current practices are legal. 

This legislation will allow countries to gain more tax money from corporations like Google, Amazon, Facebook and Apple, making their tax dodging practices less effective. Note that this tax is not on hardware/tech itself, which means that consumers will not be footing the bill here, at least directly. 

You can join the discussion on the EU's planned "Tech Tax" on the OC3D Forums.  

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Most Recent Comments

05-03-2018, 07:47:52

AlienALX
They should tax phones, IMO. Too many people just tossing them in the bin and buying new ones. Bit unfair to blanket everything but hey, that's the EU.Quote

05-03-2018, 07:56:53

WYP
Quote:
Originally Posted by AlienALX View Post
They should tax phones, IMO. Too many people just tossing them in the bin and buying new ones. Bit unfair to blanket everything but hey, that's the EU.
Well... this isn't about tech waste, it is about avoiding tax dodging.

The tax isn't on the top of product pricing, but on the company's revenue in each country they operate in.

IE, Apple France won't be able to funnel all of their profits into Ireland and avoid a lot of tax. They will be forced to pay a tax on a small amount of their revenue to France before they get to dodge tax on their profits.

Long story short, more tax will get paid to where it should get paid.Quote

05-03-2018, 07:59:29

Warchild
Quote:
Originally Posted by AlienALX View Post
They should tax phones, IMO. Too many people just tossing them in the bin and buying new ones. Bit unfair to blanket everything but hey, that's the EU.
Won't be a concern of yours soon :P well... 12months time at least.Quote

05-03-2018, 08:15:39

AlienALX
Quote:
Originally Posted by Warchild View Post
Won't be a concern of yours soon :P well... 12months time at least.
No, thank god. Sick of being barked at by Germany.

Mark - the big question now is, are they going to pass it onto consumers?

Not that I care. TBH this whole minergate/RAMgate/SSDgate thing has done me a favour really. I've spent a lot less on tech crap since it happened and won't spend any more unless it is critical until it all normalises, if it ever does.Quote

05-03-2018, 09:32:34

Arne Saknussemm
Quote:
Originally Posted by WYP View Post
Long story short, more tax will get paid to where it should get paid.
Err no...long story short, companies will move out of EU altogether to somewhere they pay less tax...

The EUSSR will learn the hard wayQuote
Reply
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