The Online Giants are in the sights of the European authorities
The EU authorities are willing to tackle the tax optimisation techniques put in place by the world's largest digital groups. According to a report from the MEP Paul Tang the member countries have lost € 5.4 billion in taxes between 2013 and 2015 as the consequence of these harmful tax practices. The experienced parliamentarian underlines the fact that this amount concerns only Google and Facebook. If we take in account all the companies concerned by the case the tax loss is of course much higher. This report stresses that Google, based in Ireland, paid outside the EU taxes representing 9% of its turnover, but this rate dropped to 0.82% inside the EU. Another online Giant, Facebook, also based in Ireland, showed a ratio as little as 0.1% during the same period. Today, most of the 28 EU member states agree in principle on more effective taxation of digital companies. Estonia, which currently holds the EU presidency made fighting these tax optimisation mechanism a top priority. This project would lead to tax these companies when they are "virtually" present in a country in particular through a digital platform. Consequently, the major digital groups would be taxed where they really create value and not only in the countries where they have established their tax residence. And this idea is gaining momentum worldwide. Because it is not just about money, it is also a question of justice and fair treatment.