U.S. tech industry cool on Trump deal on France digital tax

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France's levy has been criticized in Washington for departing from precedent on taxing revenue instead of profits and for targeting a narrow group of companies.

GAFA. This combination of pictures shows the logos of the GAFA, named after US multinational technology and Internet-related services company Google, Amazon, Facebook and Apple, displayed on a tablet in Paris, on February 18, 2019. Photo by Lionel Bonaventure/AFP

"France's unilateral digital tax action aimed at leading American companies is unjustified, and if tolerated, will encourage other countries to follow their example," said Ed Black, the president of CCIA, which counts Google, Amazon and Facebook among the companies it represents. "Unilateral proposals that depart from stable, predictable international tax policies and increase the likelihood of global tax policy fragmentation remain unacceptable," McCloskey said in a statement.

Under the agreement struck at the G7 meeting of world leaders in Biarritz, French tax authorities will reimburse companies if they paid more than they would have under the yet-to-be-decided international formula, French Economy Minister Bruno Le Maire said. "It is hard to imagine that the US would take no action against France's digital tax targeting US companies," CCIA's Black said.

Joe Kennedy of the Information Technology & Innovation Foundation, a think tank often aligned with the industry, said there was no assurance a global agreement would be reached anytime soon.

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US tech industry cool on Trump deal on France digital tax
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