France said a U.S. decision to quit global talks on how to tax big digital firms such as Google , Amazon and Facebook was a 'provocation' and the European Union said it could impose taxes even if no deal was reached by year-end.
) was a “provocation” and the European Union said it could impose taxes even if no deal was reached by year-end.
The talks aim to reach a deal by the end of 2020, but that deadline is now slipping out of reach with Washington’s latest move and the U.S. presidential election in November. European countries says tech firms pay too little tax in countries where they do business because they can shift profits around the globe with little physical infrastructure. Washington has resisted any new unilateral taxes on Silicon Valley companies in the absence of an OECD deal.“The European Commission wants a global solution to bring corporate taxation into the 21st century,” European Economic Commissioner Paolo Gentiloni said.
“No one can accept that the digital giants can make profits from their 450 million European clients and not pay taxes where they are,” he said.
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