France angers Trump with 3% tax on large digital firms

14 July, 2019, 10:27 | Author: Wade Massey
  • Trump on course for new trade war with France

The White House says the tariffs unfairly target American tech companies.

In fact, on Thursday (July 11th), French parliament had approved an additional 3 percent duties on revenues earned by digital service providers in France, however, the added levy would be applicable to the digital services with more than 25 million euros in revenues in France and 750 million euros worldwide.

Paris: The French government on Thursday lamented Washington's decision to open an investigation into its new tax regime for digital giants like Amazons and Google. Mr Boris Johnson, the man most likely to become the country's new prime minister by the end of this month, vows to hit the companies harder.

The Computer & Communications Industry Association on Wednesday applauded the US Trade Representative's move, saying the tax would retroactively require US internet giants operating in France to turn over a percentage of their revenues from the beginning of this year and violates global trade commitments.

France insists that the tax - likely to raise about €400m this year alone - does not seek to target just U.S. companies and will affect European and Asian firms as well. Chinese, German, Spanish and British firms are also affected, as well as the French online advertising firm Criteo.

"We've got to find a way of taxing the internet giants on their income, because at the moment it is simply unfair", Johnson said earlier this month, according to Reuters. This is a tax charge for the largest digital businesses - search engines, social media platforms and online marketplaces - with global revenues over £500m and United Kingdom revenues over £25m to reflect the revenue derived from their United Kingdom users.

Oliver Jackson-Cohen to replace Johnny Depp in 'The Invisible Man'
Leigh Whannell is directing, writing and executive producing the movie, which is scheduled to hit theaters on March 13, 2020 . Jackson-Cohen's other credits include the BBC drama Man In an Orange Shirt , as well as films like The Healer and The Raven .


Theresa May speaks of Brexit frustration in final interview as British PM
The following day, July 24, Theresa May will speak at her final Prime Minister's Questions before heading to Buckingham Palace to resign as Prime Minister to the Queen.


Pakistan joins US, Russia and China call for Afghan ceasefire
Police said the attack targeted Malik Toor, a pro-government militia commander, who was killed in the blast. The soldier is the 10th member of the USA military to be killed this year - compared to 12 in all of 2018.


The tax will be introduced in 2020 and will be €1.50 on economy-class tickets, both within France, and between other European Union countries.

On its own, a 3% tax such as France's would hardly dent the revenues of big tech companies. There was general agreement from most states except for Ireland, Sweden and Denmark who opposed the tax. "The United States is very concerned that the digital-services tax which is expected to pass the French Senate tomorrow unfairly targets American companies", Lighthizer said Wednesday.

The United States Trade Representative (USTR) said in a statement "services covered are ones where US firms are global leaders".

"Between allies, we can, and we should, solve our differences without using threats", Bruno Le Maire said.

In Silicon Valley, US tech companies have responded as angrily as the US government, claiming that it could lead to double taxation. Currently, the companies pay almost no tax in countries where they have large sales like France.

Recommended:



Popular

Jaguar Land Rover develops AI mood detection to reduce driver stress
In time the system will learn a driver's preference and make increasingly tailored adjustments. Reports suggest 74 per cent of drivers admit to feeling stressed or overwhelmed every day*.

Leak claims Trump scrapped Iran nuclear deal to spite Obama
The US President reacted by lashing out in a series of tweets, calling Darroch a "wacky Ambassador" and "very stupid guy". Basu said journalists and publishers could be in breach of the law if they published further details from the memos.

Water train from Vellore arrives in Chennai
The train, in a bid to aid the residents suffering due to the severe water crisis, reached the city of Chennai in the afternoon. It is a commuters' railway hub and comes under the Southern Railway zone. "Tamil Nadu has received no rain in six months".

Amir Khan claims WBC international welterweight title
Khan came out strong and fast, utilising the hand speed we're so accustomed to seeing throughout the years. Khan and Dib competed for the WBC International Welterweight Championship at Jeddah's Season Festival.

Reckitt pays United States 1.4 billion dollar to settle opioid treatment spat
It said the settlement would prevent uncertainty and distraction from continued investigations. But investors feared the USA investigations could hinder the company's transformation.

China's Fosun in advanced talks to invest $940m in Thomas Cook
Unsurprisingly the market hates the idea, sending Thomas Cook's share price crashing more than 46% in mid-morning trading. The British holiday company's tour business had 11 million customers in 2018 and produced £7.4 billion in revenue.

Dog the Bounty Hunter Pays Tribute to Beth Chapman at Colorado Service
Beth Chapman , Dog's late wife and Leland's stepmother, lost her two-year battle with throat cancer late last month. Dog's doing his best to stay strong but at times, he still finds it challenging to cope with such an enormous loss'.

Charming Charlie to close all stores
The announcement affects more than 3,000 full- and part-time employees across the country, all of whom could lose their jobs. Michael McGough anchors The Sacramento Bee's breaking news reporting team, covering public safety and other local stories.

Extraordinary footage shows manta ray appealing to diver for help
One of the divers removed the hooks after several attempts, and footage of the unusual meeting has gone viral. Freckles have also been exposed to a significant risk of blindness when the hooks have moved.

Natural disaster rattles Washington, followed by aftershock
Initial USGS reports had described the larger trembling as a magnitude 4.4 quake that began less deep in the earth's surface. Authorities have not issued any tsunami warnings or advisories, and no serious injuries or damage has been reported yet.