Big tech: France's digital tax discriminatory against US firms

Monday, 19. August 2019 19:41

Vice president of federal and global policy with CompTIA, a trade group consisting of big tech companies including Google, Inc. and Facebook Inc., Stephanie Holland, said on Monday that the digital tax being imposed in France is "discriminatory" against successful American companies.

"Tax requirements will disproportionately harm some of the most successful global enterprises based on the US," Holland stressed in a congressional hearing in which other representatives of big tech also participated. Facebook's head of global tax policy, Alan Lee said the company expects "additional tax compliance, audit, engineering and maintenance costs," while Amazon's director of international tax policy Peter Hiltz sees multi-million dollar costs induced by the policy.

In July, the US Trade Representative has launched an investigation of the tax imposed by France, on the basis of Section 301 of the Trade Act of 1974, which was also the basis on trade tariffs on China. The probe could take up to a year and potentially lead to retaliatory measures. President Donald Trump vowed to retaliate against the measure with a "substantial reciprocal action."

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