Washington pauses tax negotiations with digital giants

The United States proposed a break in the OECD ‘s international tax talks on Wednesday, and 137 countries had agreed on an agreement by the end of 2020 by the end of 2020.

Noting the lack of progress in digital giants taxation (GAFA tax for Google, Amazon, Facebook, Apple), the Trump administration has decided to pause discussions within the Organization for Economic Cooperation and Development (OECD), the US Treasury Department announced secretariat Wednesday (June 17). This tax had been discussed for months.

“The United States has proposed to take a break from the OECD’s international tax talks as governments around the world focus on responding to the Covid-19 pandemic and securely opening it again. Their savings,” said in a statement Monica Crowley, responsible for public affairs.

“We made no progress, and Finance Secretary Steven Mnuchin preferred to withdraw from negotiations rather than wait for Europeans to do it by themselves,” supported US Representative for Trade Robert Lighthizer, during a meeting with European parliamentarians. Washington believes that Europe has not done enough with will.

Previously, however, he had not ruled out a multilateral agreement. “I think there is clearly room for a negotiated solution,” he said. “We need an international regime that focuses not only on certain industries but also on how we should tax people internationally.”

The American threat to tax French products 100%

In early May, French Finance Minister Bruno Le Maire had estimated that the European Union would once again grab the file for taxing the digital giants insofar as the work done at the OECD “marked (ai) ent le pas”.

By the end of January, 137 countries had agreed to reach an agreement on taxation of multinational corporations under the OECD by the end of 2020. Taxation must take into account the real business conducted in each country to avoid large groups including GAFA paying their taxes where taxation on profits is the easiest.

France has decided to impose a tax on large digital companies on January 1, 2019, up to 3% of their turnover, pending the adoption of international taxation.

The Trump administration then threatened to overload “up to 100%” equivalent to $ 2.4 billion in French products.

With AFP