France considering an Internet tax

The French government is considering an Internet tax on international companies that sell online but pay much less taxes than companies with brick-and-mortar stores in the nation.

Major companies like Google, Apple, Facebook and Amazon are being targeted, as the companies combine to bring in sales of five billion euros in France.

The report quoted Yves Le Mouel, head of the French Telecommunications Federation (FFT).

If accurate, the report claims that the government will launch a new study and consider new levies on Internet-based companies.

"Our fiscal system has trouble integrating new transaction forms generated by the digital economy. The result is a loss of income for public finances and a competitive disadvantage for French companies with respect to international groups which have organized themselves to evade or diminish their taxes," reads the news (via EET).

Written by: Andre Yoskowitz @ 16 Jul 2012 22:56

Notcow

Title scared me, thought that France was going to begin taxing for internet use...but the story actually presents France addressing a valid problem. By practically exempting companies from tax by making them move to an online market, they're alienating a large source of tax revenue. Other countries should follow suit.

17.7.2012 09:06 #1

LordRuss

If there were simply a flat tax & people paid it (i.e., stopped screwing around & finding ways out of the obligation) & then the respective governments stop pissing the money away, each system might actually work. In theory.

Corruption, entitlement, class justification, the list could go on - all seem fit to be reasons why none of these governing factions work. Somebody always thinks they're better than another or I deserve more.

Granted, it's based on a human survival instinct & isn't exactly easy to shut off. But we know it's there & should know better than to act on it every breathing moment.

http://onlyinrussellsworld.blogspot.com

18.7.2012 12:47 #2

Dr_Shifty

Here in Oz there is already some measures that do this. Anything purchased from a foreign country for less than $1,000 does not attract either the normal 10% GST or any import duties. Over $1,000 and it does.

Some local retailers want that $1,000 reduced to zero. Other retailers are getting more motivated to start online stores of their own.

Some international online sellers nominate purchases as gifts to get around such fees, but I suspect the customs staff take little notice when a parcel from an online retailer is marked as a gift.

22.7.2012 00:23 #3

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