EU Countries To Take on Multinationals

September 13, 2017 Taxation in EU

EU TaxationBRUSSELS – Several Finance Ministers from the EU have banded together to propose a new tax on the earnings of large multinational tech firms.

The Finance Ministers of France, Germany, Italy, and Spain have penned a letter calling for the European Union to take a tougher stance on multinational tech-giants and their ability to dodge taxes in Europe.

Following the letter, the topic of taxation of such businesses has been scheduled to be discussed at a joint-meeting of national Finance Ministers and EU meeting to be held soon in Estonia.

The Finance Ministers are taking objection to multinationals’ ability to carry out business and make profits from activities in one country, while diverting the profits to the low-tax jurisdictions where they are registered.

The authors of the letter are expected to unveil and propose a new tax plan which ““would aim to reflect some of what these companies should be paying”.

Some experts have speculated that the tax may revolve around the taxation of revenues generated in a country, instead of taxes based on income.