05:26 GMT +322 September 2019
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    FILE PHOTO: The logo of Amazon is seen at the company logistics centre in Boves, France, January 19, 2019. REUTERS/Pascal Rossignol/File Photo

    France to Blacklist 'Non-Collaborative' Tech Firms to Counter Tax Evasion

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    MOSCOW (Sputnik) - France will counter tax evasion by creating a blacklist of digital companies which fail to comply with the country's fiscal regulations, Minister of Public Action and Accounts Gerald Darmanin said in an interview.

    "We will form a blacklist of non-collaborative platforms, like [the one] for tax havens," Darmanin said in the interview with Les Echos published late on Thursday.

    The minister noted that the list would be based on four criteria — paying the so-called GAFA tax imposed on technological companies; paying value-added tax (VAT); responding to the tax authorities' requests; and transmitting users' incomes at the request of the authorities.

    The minister recalled that VAT fraud formed around 80 percent of fiscal fraud criminal cases.

    Darmanin added that France would draft a law, based on an EU directive, requiring online platforms, such as Amazon or Alibaba, to collect VAT.

    Legislation introducing the GAFA tax, named after IT giants Google, Amazon, Facebook and Apple, was adopted by French lawmakers on July 11. The measure includes imposing a 3-percent tax on annual revenues of major online platforms operating in France.

    The measure was met with backlash on the part of the IT giants that called it discriminatory. Moreover, since most of the large technology companies are US-based, US President Donald Trump said Washington would retaliate against the tax.


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