EU To Consider Internet Company Tax Changes

The finance ministers from Germany, France, Spain and Italy have written a joint letter to the European Commission, asking them to change the way they tax internet companies. They have asked the European Commission to base taxes on the revenues that internet companies generate in EU countries, rather than on profits which is the case currently. They claim that under the current rules, internet giants such as Google and Amazon are paying tiny amounts of tax despite the fact they are making huge amounts of money in revenue. The letter states: “We should no longer accept that these companies do business in Europe while paying minimal amounts of tax to our treasuries”. The letter goes on to suggest an “equalisation tax” that would scrap national tax codes and would instead collect levies based on national turnover. The proposal would have to be backed by all 28 member states of the European Union in order to be approved. The letter is set to be put forward to all 28 finance ministers on Friday the 15th of September.