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France Proposing 'Internet Tax'

 12:52 pm on Jan 21, 2013 (gmt 0)

France, seeking fresh ways to raise funds and frustrated that American technology companies that dominate its digital economy are largely beyond the reach of French fiscal authorities, has proposed a new levy: an Internet tax on the collection of personal data. The idea surfaced Friday in a report commissioned by President François Hollande, which described various measures his government was taking to address what the French see as tax avoidance by Internet companies like Google, Amazon and Facebook. France Proposing 'Internet Tax' [nytimes.com]



 1:38 pm on Jan 21, 2013 (gmt 0)

A silly idea. It penalises lower margin business models, and its not easy to enforce.

What is really needed is reform at the EU level to prevent profits being moved to tax havens (i.e. Ireland).


 4:00 pm on Jan 21, 2013 (gmt 0)

while i agree with the second part of what graeme_p says

... i think it is a good idea, how to make it workable is another matter.

OT i think we should introduce a coffee tax, rather like the tax on alcohol, to stop the likes of starbucks avoiding tax. i also think there should be a tax on companies using foreign call centres.


 4:17 pm on Jan 21, 2013 (gmt 0)

A unilateral approach in a global market will have a great deal less impact, imho. The result of such unilateral action by the French will be to drive businesses to other regions where more favourable rates exist. This is what goes on right now, but will be accelerated if the tax becomes law. Only the ordinary person will end up suffering and paying more.

If multilateral action is taken there is a greater chance of success, but it has to go much further than just the EU.

As far as certain coffee shops are concerned, the individual coffee shops employ many staff and pay their taxes. The problem is with the head office. As I said, it's a global market.

There are too many coffee shops, imho. I have no idea how it can sustain such growth, apart from increasing the prices.


 7:43 pm on Jan 21, 2013 (gmt 0)

There are too many coffee shops, imho. I have no idea how it can sustain such growth, apart from increasing the prices.

Take a page from tobacco: get them addicted at a younger age.

Someday, governments may finally wake up and understand that they can usually generate more revenue by improving the business environment, rather that making it worse and driving away businesses. That will be the day when pigs fly south because Hell froze over.

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