Connect with us

Popular World News

French Defiance to Trump on Digital Tax Casts Shadow Over G-7 By Bloomberg

© Reuters.  French Defiance to Trump on Digital Tax Casts Shadow Over G-7


French Defiance to Trump on Digital Tax Casts Shadow Over G-7 By Bloomberg


© Reuters. French Defiance to Trump on Digital Tax Casts Shadow Over G-7

(Bloomberg) — A French-U.S. clash over digital taxation overshadowed the start of a Group of Seven finance chiefs meeting as France refused to flinch on its plan to impose levies that will hit American tech giants.

Just hours before an encounter with U.S. Treasury Secretary Steven Mnuchin at the G-7 near Paris, French Finance Minister Bruno Le Maire pledged to forge ahead with a 3% levy on digital revenues of large companies. France hopes its drive will pressure the U.S. to be more constructive in talks on creating a similar tax globally on profits.

“What I will try to explain to Mnuchin is that it is the U.S. interest to put in place such a taxation for the new economic model, based on data,” Le Maire said on French radio France Inter.

Le Maire’s defiance is likely to meet with a chilly response from U.S. President Donald Trump’s administration. According to a report on Wednesday in Spanish newspaper El Mundo, the U.S. State Department has sent letters to embassies in several countries, including Spain, ordering them to alert governments that retaliation will follow if they go down the same path as France.

Retaliation Threat

U.S. Trade Representative Robert Lighthizer already reacted last week to the French parliament’s approval of the tax by launching a probe to determine whether the measure is “discriminatory or unreasonable and burdens or restricts United States commerce.” The U.S. could ultimately impose retaliatory tariffs or other trade limits, or even use provisions in the tax code to punish French citizens and companies.

The G-7 meeting at the Chateau of Chantilly, north of the French capital, will be a suitable venue to reach agreement on the matter, Le Maire said.

“The best and wisest decision would be to find an international solution,” he said. “The G-7 is the right moment to decide on that international tax scheme.”

Le Maire claims he has a good working relationship with Mnuchin that will help achieve that.

“We have been working very well together,” he told a conference in Paris on Tuesday. “I am sure we will continue to do so. I want to thank Steven for his commitment and his ability to work towards compromises,” Le Maire said in Paris Tuesday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


To Top
error: Content is protected !!