France, Germany aim to close tax loopholes for US tech companies
France and Germany are teaming up with other partners to close tax loopholes for U.S. tech giants like Apple and Google.
French Finance Minister Bruno Le Maire told Bloomberg in an interview with France will propose new tax rules for such companies during a meeting of European Union officials in September.
“Europe must learn to defend its economic interest much more firmly — China does it, the U.S. does it,” he said. “You cannot take the benefit of doing business in France or in Europe without paying the taxes that other companies — French or European companies — are paying.”
The proposal will seek to curb international firms’ ability to shift profits and costs to countries with lower tax rates, according to Bloomberg, and comes amid growing frustration in Europe with that practice.
Denis Kolberg, a spokesman for Germany’s finance ministry, said Germany would comment on the specific proposals after its election in September, according to Bloomberg.
Last year, the European Commission ordered Apple to pay up to 13 billion euros in back taxes, saying that Ireland provided the U.S. tech giant with illegal aid. Both Apple and the Ireland’s government are disputing that decision.
French President Emmanuel Macron is calling on Euro-zone countries with lower corporate tax rates to raise them in order to better align taxes with France and Germany, the euro area’s two largest economies.