Tech giants like Google or Amazon might end up paying a lot more tax in Europe, if a new EU initiative goes through.
A debate concerning whether tech giants should pay taxes wherever they produce value has been scheduled for September 15th.
So far, they are only paying taxes where they are physically present. This has led to businesses going into countries with different tax incentives. Google, for example, has its EU headquarters in Ireland, which helped it dodge taxes in France.
Now, after a joint letter addressed to the European Union's presidency and Commission, and written by finance ministers of France, Germany, Italy and Spain, the topic is on the table for next week's meeting in Estonia.
“Europe must learn to defend its economic interest much more firmly -- China does it, the U.S. does it,” French Finance Minister Bruno Le Maire said in an interview early last month. “You cannot take the benefit of doing business in France or in Europe without paying the taxes that other companies -- French or European companies -- are paying.”
It is yet unknown how EU member states will react to this proposal, and we will have to wait until September 15 to find out, although commentators believe tech giants will fight against such initiatives until the bitter end.
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