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EU tax commissioner slams U.S. plans on tech tax – Source Reuters Tech News

FILE PHOTO: European Economic Commissioner Paolo Gentiloni addresses a news conference on the EU’s winter economic forecast, in Brussels Belgium February 13, 2020. REUTERS/Yves Herman/File Photo

BRUSSELS (Reuters) – A global reform of the taxation of corporate digital revenues is very unlikely if the United States continues backing a “safe harbor” plan which would allow firms to choose how to be taxed, European Union tax commissioner Paolo Gentiloni said on Tuesday.

Outdated cross-border tax rules are set to be rewritten under a joint pledge from 137 states to reform a system that has been strained to breaking point by companies like Amazon, Facebook and Google which have booked profits in low-tax countries like Ireland, no matter where their customers are located.

A global deal is crucial to avoid trade wars and different national taxes on digital revenues, but is complicated by diverging positions.

The U.S. has in principle accepted the reform but has proposed to give…

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Source Reuters Tech News

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