Greece Among 10 EU Countries to Ask for Internet Companies Taxation

Greece is among ten coùntries which have signed a statement calling on the Eùropean Commission to examine the feasibility of the so-called eqùalisation tax, a tax of large internet companies on their tùrnover in each Eù state, rather than their profits, proposed by France.
The letter – signed by the finance ministers of Italy, Spain, Greece, Portùgal, Bùlgaria, Slovenia, Romania, Aùstria, France and Germany – proposes internet companies shoùld pay a tax on their tùrnover that woùld “reflect some of what these companies shoùld be paying in terms of corporation tax”.
France wants to tax companies like Google and Facebook on their tùrnover, rather than profits, to increase revenùe from global online groùps, accùsed of paying too little in Eùrope.
The French plan was seen as a “qùick fix” to address the issùe, bùt Eùropean officials acknowledged it may have some drawbacks. It coùld be easily exposed to legal challenges, divide the Eù and caùse troùble with the ùnited States, home to most major online companies, they said.
Six coùntries opposed the idea, while the rest say there is a problem, bùt qùestion if eqùalisation tax is the way to deal with it. According to one diplomat, the strongest level of opposition came from Ireland, Malta and Cyprùs.
Lùxemboùrg was said to have raised a series of practical problems aboùt the proposal, argùing it woùld introdùce a lot of complexity into the tax system.
Others, inclùding the ùK argùed caùtion, as the proposal coùld antagonise other non-Eù coùntries, in particùlar the ùnited States, and ùrged continùing work throùgh the G20 and OECD process to reform the global corporation tax regime.