TAE rejects the EU digital tax
The European Taxpayers’ Association (TAE) rejects the European Commission’s proposal to introduce an EU digital tax.
Who wouldn’t want the big ‘evil’ corporations such as Google, Amazon and Facebook to finally pay more tax and contribute their fair share? To achieve this, all that would be needed is to harmonise the tax bases for companies and introduce EU-wide minimum taxes as well as an EU digital tax. This is the only way to hold these giants to account. Surely no one can object to that, can they?
The reality is that transparency and stricter rules already exist today.
The European Commission’s claim that there is a serious, politically undesirable discrepancy in taxation between digital and conventional companies can be very easily and empirically refuted!
We at the Taxpayers’ Association will do everything in our power to prevent the EU digital tax. We firmly reject this hasty European initiative. It would be more sensible, appropriate and in keeping with the times to begin revising international tax rules within the framework of the OECD, rather than once again attempting a European solo venture.
It is to be hoped that no country will take part in this tax madness and that the digital tax returns will be sent back to where they belong: into the bin of the EU Commission’s discarded tax cartel ideas.
Should – contrary to all evidence – the harmonisation of direct taxes in Europe go ahead, it must be clear to everyone that, from that point onwards, a permanent EU financial equalisation scheme will also apply, as taxes are a key factor in determining business location and thus in ensuring economic balance. No company will then voluntarily relocate to Eastern Europe or to a European island if it finds the same framework conditions and the same tax rate in Berlin, Paris, Rome or Madrid.
Instead of constantly coming up with new ideas to please those who favour tax rises, the European Commission should finally get on with reforming the institutions.
More Europe where it is needed, and less Europe where it is possible!