Germany’s Finance Minister Wants Tech Giants To Pay Higher Taxes

In an editorial for a German newspaper, Finance Minister Olaf Scholz proposes a global minimum tax rate to ensure that multinational corporations like Apple pay national taxes in proportion to their profits. The European Union (EU) has long been concerned about this technology. Giants stop using complex accounting systems to spread their profits and minimize the amount they pay in any way. Country.

Scholz World is Sunday is part of a wider effort to harmonize tax rates in the EU. This has proved less popular in member countries where taxes are lower, as in Ireland.

"We need a minimum of global taxation that no state can undermine," said Scholz in a statement. He pointed out that the Internet economy is "aggravating a problem we recognize from globalization and that we are trying to solve: the placement of profits in low-tax jurisdictions."

It is unclear whether this is seriously considered as a bill at some point in time. However, the fact that a high-ranking politician from one of the EU's most powerful member states expresses this opinion suggests that there is a good chance.

Apple vs USA

This is not the first attempt to introduce tax changes to prevent companies from redistributing their profits to avoid taxes. Earlier this year, French Finance Minister Bruno Le Maire spoke of a plan to tax the technology multinationals at 2-6% of their world income. "It's a starting point," he said at the time.

In August 2016, the EU paid Apple a € 13 billion (US $ 15.5 billion) tax bill, claiming that the company had received state aid. unlawful, which allows it to transfer its profits through Ireland. The investigation found that Apple had paid only 0.005% of all European profits in 2014.

Apple has paid the full amount, although this process is blocked until the case is settled in court. In January 2018, Apple Europe completed an additional payment of $ 186 million plus interest on unpaid taxes following a "thorough review." It was carried out by HM Revenue and Customs, the UK tax authority.

Hope you like the news "Germany's Finance Minister wants Tech Giants to pay higher taxes" from Compsmag. Stay tuned for more updates and let us know your feedback in the comments section.

The Compsmag is a participant in the Amazon Services LLC Associates Program, which is an affiliate advertising program designed to offer sites a means to earn advertising costs by advertising and linking to
Compsmag - Reviews, News And Deals!