Like the small taxpayer, large corporations do not like to pay their taxes. On the other hand, it is easier for them to pay less through a tax optimization system, i.e. entirely legal tax evasion. The web giants are real professionals in this field and France, Europe, but also many other countries are looking for a solution to put obstacles in their way and force them to pay (all) their taxes.
Web giants earn considerable sums of money but are reluctant to pay up. It is human, but it is a problem and countries do not like to see so much taxable money slipping by under their noses. While 127 OECD member countries have agreed to change the tax system for digital companies, there is much less agreement on how to proceed.
In the United States, the cradle of these large companies, the solution is simple: all international firms using (or abusing?) tax optimization will be penalized when they "transfer intangible assets - patents, intellectual property, patents, software, algorithms - from which they derive income to countries with low taxes". The focus is on Ireland, where several large companies have taken refuge to optimize their taxation.
Europe sees things differently: taxation would be directly on the turnover of these digital giants, which of course does not please the United States. The UK, on the other hand, would only tax data flows.
The question is how to proceed with taxation from now: should tax apply at the place where the sales are made or, at least, the activity of the group? Apparently this hypothesis would be preferred, especially by India and China, but it raises a problem, however: when the sales are located mainly abroad this can represent a loss of income. This is particularly frightening for Germany, which has good revenue with car sales abroad. Their solution? Propose a tax rate between 7% and 20%. In short, it's hard to agree on a solution.
What do you think about the GAFA tax? Let us know in the comments.
Source: Les Echos