Macron says tech giants enjoy 'permanent tax haven status'

Trump and Macron have clashed over Paris's taxation plan for  digital giants with the US president denouncing his French counter
Trump and Macron have clashed over Paris's taxation plan for digital giants with the US president denouncing his French counterpart's "foolishness"

French President Emmanuel Macron, who will defend a global tax on tech giants at this weekend's G7 meeting, on Wednesday criticised a "crazy" system that gives firms a "permanent tax haven status".

"The global tech players do not contribute financially to the funding of the common good, it is not sustainable," the told reporters.

He said he had on Monday discussed the issue with US President Donald Trump, who has strongly opposed a law passed in France last month on taxing digital companies even if their headquarters are elsewhere.

The law will affect US-based global giants like Google, Apple, Facebook and Amazon, among others.

Macron said there had been "very strong lobbying" by the .

"We must stop having people who have a permanent tax haven status," he said.

The French law aims to plug a taxation gap that has seen some internet heavyweights paying next to nothing in European countries where they make huge profits, because their legal base is in smaller EU states.

France has said it would withdraw the tax if an international agreement is reached, and Paris hopes to include all OECD countries by the end of 2020.

Economy Minister Bruno Le Maire said last month France hoped to reach an agreement with the US on a universal tax on digital activities before the G7 heads of state meeting in Biarritz this weekend.


Explore further

France aims for US digital tax deal by late August: minister

© 2019 AFP

Citation: Macron says tech giants enjoy 'permanent tax haven status' (2019, August 21) retrieved 19 October 2019 from https://techxplore.com/news/2019-08-macron-tech-giants-permanent-tax.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
8 shares

Feedback to editors

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more