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US Reprisal Against French "GAFA" Tax

     
7:40 am on Jul 11, 2019 (gmt 0)

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U.S. to investigate planned French tax on Apple, other tech giants
President Donald Trump is planning to launch a probe into France's intent to implement a digital tax initiative targeting large internet companies, an investigation that could lead to tariffs or trade restrictions.
[appleinsider.com...]


France wants to create a 3% tax which would apply to roughtly 30 Internet companies (GAFA = Google Amazon Facebook Apple, but became a generic word for big Internet companies). The tax should be calculated on the turnover generated by these companies in France, but France would like this tax to be extended to the whole EU. The argument to support this tax is that, these companies are abusing fiscal optimizations to pay barely nothing in EU countries.
8:06 am on July 11, 2019 (gmt 0)

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So the US wants to tell the French what taxes they can impose on firms French operations?

It seems a perfectly reasonable response to these companies tax dodging.

Either looking for an excuse to impose tariffs or simply in the pocket of big tax dodgers.
8:25 am on July 11, 2019 (gmt 0)

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To be precise, and if I don't make mistake, this tax should apply to all companies serving digital services, if their worldwide turnaround is 750 millions euros and more, AND if their French turnaround is 25 millions euros and more. So, roughly 30 companies are concerned by this tax, including the French company Criteo.