France pushes Ireland to support digital taxation for tech companies

France pushes Ireland to support digital taxation for tech companies

 

 

 

During his visit to Dublin this week, French Finance Minister Bruno Le Maire urged his counterpart Paschal Donohoe and Taoiseach Leo Varadkar to support a proposal by the EU Commission to tax tech companies.

The proposal which was brought forward in March of last year, would tax tech companies on three different sources of income;  the exploitation of data,  advertising revenue and sales on digital platforms. The proposal encountered heavy resistance from Germany which only agreed on taxes for advertising revenue.  Denmark, Sweden, Finland and Ireland opposed the proposal entirely.

France is set to adopt the proposal in a national law this year. President Macron is also planning on making the issue a priority during its upcoming presidency at the G7.

In a speech at the Institute of International and European Affairs Le Maire stated that “friends can say difficult things” to one another and that Ireland’s low taxes for tech companies allowed for Ireland  profiting monetarily from the data of 65 million French consumers.

Irish Finance Minister Paschal Donohoe addressed the digital tax issue by mentioning the potential to find possible future solutions through technical talks at the OECD level.   This was presented by the French Minster as a new position, but in reality has been a long held position of the Irish Government.