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    EU Digital Tax Plan Will Prompt US Retaliation – Danish Finance Minister

    © AFP 2018 / Philippe Huguen
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    Earlier, the European Commission called for slapping a three-percent tax on digital revenues of internet giants. The proposal stipulates that only companies with a global annual turnover of 750 million euros and EU revenue of at least 50 million euros per year should be subject to the new levy.

    Denmark's Finance Minister Kristian Jensen has warned that Washington may retaliate against the EU's plans to introduce a three percent tax on the turnover of digital giants.

    Speaking to reporters on the sidelines of an EU ministerial meeting on the matter, he said that "of course there will be a reaction from the US."

    READ MORE: Google to Challenge Indian Income Tax Tribunal Order to Pay Taxes

    In early August, Mel Stride, the financial secretary to the UK Treasury, said that the British government is ready to proceed with unilateral measures to tackle the tax evasion of such digital giants as Google and Facebook, if the international efforts on the issue come to a standstill.

    Austria, in turn, insisted on exclusion of the sale of users' data from the activities covered by the planned tax, a proposal which was supported by France, Italy and Spain.

    Germany, for its part, warned of Washington's possible retaliation against the tax plan, and was echoed by Sweden and Ireland; the countries claimed that it would damage the EU's competitiveness because the tax would be imposed on revenues rather than profits.

    US Treasury Secretary Steven Mnuchin, meanwhile, called for a global solution to the problem, warning against "unilateral action".

    "A tax should be based on income, not sales, and should not single out a specific industry for taxation under a different standard," he underscored.

    In March, the European Commission proposed that EU countries should impose a three percent levy on the digital turnover of large firms such as Google and Facebook, which are accused of sending profits to countries with low taxation, such as Ireland and Luxembourg.

    Related:

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    'Insult to Taxpayers:' UK Shadow Chancellor Slams Google's Tax Avoidance
    Google to Challenge Indian Income Tax Tribunal Order to Pay Taxes
    Internet Tax: Jeremy Corbyn Plans Windfall Levy on Google, Amazon and Facebook
    Tags:
    turnover, revenue, internet, tax, European Commission, Google, Amazon, Facebook, Kristian Jensen, United States, Denmark
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