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You can find the current article at its original source at http://www.theguardian.com/business/2017/sep/26/eus-tax-plans-for-tech-companies-will-damage-growth-us-body-warns
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| EU's tax plans for tech companies will damage growth, US body warns | EU's tax plans for tech companies will damage growth, US body warns |
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| The American Chamber of Commerce in Europe has warned that the EU’s plans to take more tax from technology giants such as Google, Facebook and Amazon will damage the continent’s economic growth and could lead to a breakdown in cooperation with the US on global tax reform. | The American Chamber of Commerce in Europe has warned that the EU’s plans to take more tax from technology giants such as Google, Facebook and Amazon will damage the continent’s economic growth and could lead to a breakdown in cooperation with the US on global tax reform. |
| The European commission, on the prompting of France and Germany, is seeking ways to capture a greater amount of tax from companies that exploit their lack of physical offices in a country to book their profits in low-tax states. | The European commission, on the prompting of France and Germany, is seeking ways to capture a greater amount of tax from companies that exploit their lack of physical offices in a country to book their profits in low-tax states. |
| Taxing tech companies is on the agenda of an EU leaders’ summit devoted to the digital economy in Tallinn, Estonia, on Friday. | Taxing tech companies is on the agenda of an EU leaders’ summit devoted to the digital economy in Tallinn, Estonia, on Friday. |
| A recent study found that Amazon’s corporation tax bill in the UK is 11 times smaller than that of British bookstores. In Ireland, the European commission concluded that Apple paid 0.005% to Irish tax authorities in 2014. | A recent study found that Amazon’s corporation tax bill in the UK is 11 times smaller than that of British bookstores. In Ireland, the European commission concluded that Apple paid 0.005% to Irish tax authorities in 2014. |
| France is pushing a proposal to tax technology companies on turnover, rather than a conventional corporation tax on profits. It has won support from 10 EU member states, including Germany, Italy and Spain. | France is pushing a proposal to tax technology companies on turnover, rather than a conventional corporation tax on profits. It has won support from 10 EU member states, including Germany, Italy and Spain. |
| The commission’s first choice, meanwhile, is a common corporate tax base for companies aimed at introducing a common set of tax rules, but not rates, in order to prevent the hiding of profits from the appropriate tax authorities. | The commission’s first choice, meanwhile, is a common corporate tax base for companies aimed at introducing a common set of tax rules, but not rates, in order to prevent the hiding of profits from the appropriate tax authorities. |
| The American Chamber of Commerce to the European Union (AmCham EU) said on Tuesday, however, that they were concerned “by the recent proposals from the European commission and some member states to introduce new measures to tax digital activities”. | The American Chamber of Commerce to the European Union (AmCham EU) said on Tuesday, however, that they were concerned “by the recent proposals from the European commission and some member states to introduce new measures to tax digital activities”. |
| The US business organisation added that the initiatives had been floated by Brussels last week without any assessment of the impact and that they “could both harm the competitiveness of the EU and jeopardise international efforts to tackle tax issues if they are not subject to very broad multilateral agreement”. | The US business organisation added that the initiatives had been floated by Brussels last week without any assessment of the impact and that they “could both harm the competitiveness of the EU and jeopardise international efforts to tackle tax issues if they are not subject to very broad multilateral agreement”. |
| A statement said: “Turnover taxes, as proposed by some member states, can substantially reduce the amount of company profits available for investment and reinvestment, with a negative effect on jobs and growth. | A statement said: “Turnover taxes, as proposed by some member states, can substantially reduce the amount of company profits available for investment and reinvestment, with a negative effect on jobs and growth. |
| “They penalise startups, low-margin companies and loss-making companies because they do not seek to tax the value created. | |
| “The European commission’s proposal to consider including digital taxation under the scope of the common consolidated corporate tax base (CCCTB) may also adversely affect EU competitiveness and growth if it is not in line with internationally agreed rules on value creation.” | “The European commission’s proposal to consider including digital taxation under the scope of the common consolidated corporate tax base (CCCTB) may also adversely affect EU competitiveness and growth if it is not in line with internationally agreed rules on value creation.” |
| During a meeting of finance ministers in Estonia two weeks ago, the UK chancellor, Philip Hammond spoke of his concern that unilateral efforts to clamp down on the tax affairs of US technology companies would be met with retaliation from Donald Trump’s White House. The EU is working with the US on a rewriting of global tax laws to avoid aggressive tax avoidance. | During a meeting of finance ministers in Estonia two weeks ago, the UK chancellor, Philip Hammond spoke of his concern that unilateral efforts to clamp down on the tax affairs of US technology companies would be met with retaliation from Donald Trump’s White House. The EU is working with the US on a rewriting of global tax laws to avoid aggressive tax avoidance. |
| Susan Danger, chief executive of AmCham EU, said: ‘Unilateral action by the EU would seriously undermine international efforts to address tax issues. | |
| “The EU should continue to support tax reforms and the harmonisation of tax regimes within the OECD [Organisation for Economic Co-operation and Development] framework.” | “The EU should continue to support tax reforms and the harmonisation of tax regimes within the OECD [Organisation for Economic Co-operation and Development] framework.” |
| Danger went on to say: “Current EU plans risk putting Europe at a competitive disadvantage vis-a-vis other global players. Internationally agreed-upon tax standards ensure the EU remains an attractive destination for foreign investment”. | Danger went on to say: “Current EU plans risk putting Europe at a competitive disadvantage vis-a-vis other global players. Internationally agreed-upon tax standards ensure the EU remains an attractive destination for foreign investment”. |