Paul L. Caron

Saturday, November 30, 2019

12 EU States Reject Move To Expose Companies' Tax Avoidance

The Guardian, 12 EU States Reject Move to Expose Companies' Tax Avoidance:

EU Logo (2016)Twelve EU countries, including Ireland, have blocked a proposed new rule that would have forced multinational companies to reveal how much profit they make and how little tax they pay in each of the 28 member states.

The proposed directive was designed to shine a light on how some of the world’s biggest companies – such as Apple, Facebook and Google – avoid paying an estimated $500bn a year in taxes by shifting their profits from higher-tax countries such as the UK, France and Germany to zero-tax or low-tax jurisdictions including Ireland, Luxembourg and Malta. ...

Other countries that have set themselves up as low-tax environments helping to shelter the profits of the world’s biggest companies were also among those that voted against. They include Luxembourg, Malta, Cyprus, Latvia, Slovenia, Estonia, Austria, Czech Republic, Hungary, and Croatia. Sweden also voted against the proposed rule. ...

France, Spain and the Netherlands were among those voting for the proposals. Germany abstained. The UK, which had been one of the biggest supporters of tougher measures to tackle multinational tax avoidance, did not vote. ...

The OECD is trying to force big-tech companies, such as Facebook, Amazon and Google, to pay more tax in countries where they actually sell their products and services.

(Hat Tip: Ted Seto.)

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