Displaying items by tag: French
French President Emmanuel Macron has planned to implement an increase in taxes on internet giants such as Google and Facebook.
After failing to convince his European counterparts to introduce it as an EU-wide tax, he decided to implement it in his own country. Many EU officials were against the idea such as Ireland which is well-known for its low-tax jurisdictions.
The matter will be discussed by cabinet ministers and then submitted to Parliament. The proposal put forward regarding the new tax mechanism suggests that lare companies operating within France are subject to a tax of three per cent on their digital sales made within the territory.
This weekend, French Economy Minister Bruno Le Maire told Le Parisien, “The amount obtained from this three per cent tax on digital gross sales in France from January1, 2019 should soon reach 500 million Euros.”
This new tax is called “GAFA tax” which stands for Google, Apple, Facebook and Amazon.
Indeed, the European Commission found that Apple paid just 0.005 per cent of corporate tax on its European profits in 2014 which equates to approximately 50 Euros per million. As a result, in 2016 Apple was ordered by the European Commission to make a payment of 13 billion Euros in taxes to Ireland.
Under EU law, internet giants are expected to report their income which has prompted them to opt for low-tax nations for business such as Ireland, the Netherlands and Luxembourg.
Under the legislation which will be presented by French politician Bruno Le Maire on Wednesday, digital companies with sales of more than 750 million euros per year globally and more than 25 million n France will be taxed.
Le Maire stated, “If these two critera are not met, the taxes will not be imposed.”
He also said that around 30 companies in China, Germany, the US, Spain and the UK will be affected by this tax.
According to Le Maire, taxing such companies “is a question of fiscal justice” because “digital giants pay 14 per cent less tax than small- and medium-sized European companies.”
Ireland, Sweden and Denmark have refused the EU’s efforts to implement a new tax due to fear of decreased investment. Germany had a somewhat neutral stance on the matter as it feared an adverse response from the S against its car industry.
While the prospect of enforcing this tax within Europe has failed, France is hoping for a global agreement by 2020.
France is trying to pursue “common ground” on the issue with members of the Organization for Economic Cooperation and Development (OECD) which is comprised of representatives from the most advanced economies in the world.
Britain, Italy and Spain have also been working on a new digital tax while Singapore, Japan and India are in the process of planning their own schemes.
Recently, aggressive legal action by tax authorities has been taken against these companies.
Just last month, Apple reached an agreement to pay 10 years’ worth of backtracked taxes which amounted to nearly 500 million Euros.
However in 2017, France tax collection drive experienced a setback when their court action against Google resulted in the internet giant not being liable to pay 101 billion Euros in taxes from revenues which were reportedly transferred from France to Ireland.
French tax is “symbolic and does not solve the problem of massive fiscal evastion,” said Raphael Pradeau from the anti-globalisation lobby group Attac. “It’s as if we accept that such firms can practice tax evasion in return for a few crumbs.”
The French government has announced that it will be instructing operators to allow them more oversight and control in relation to the rollout of 5G networks due to increased security concerns.
The decision by the French government comes on the back of speculation that a number of Western nations are considering banning Chinese telecommunications vendor Huawei from bidding on contracts for 5G deployment, amidst fears that Beijing would be able to gain access to sensitive communications and infrastructure.
Huawei should be the go-to vendor for operators globally, as it is well-ahead of its European rivals Nokia and Ericsson in relation to 5G equipment. However, Washington are lobbying its allies to prevent the Chinese telecommunications behemoth from being involved in their 5G networks as US intelligence agencies have deemed them a serious threat to domestic security.
Guillaume Poupard, head of France's national cybersecurity agency ANSSI, said a new law could be drafted in the forthcoming number of months in an effort to ‘toughen and extend’ authorization requirements in order to be sure we control the entire 5G network.
However, he insisted that approvals would not be refused "because of a company's image, or its country of origin".
Poupard told AFP, "There aren't good equipment makers on the one hand and bad equipment makers on the other -- unfortunately the situation is much more complex. The need for oversight is all the more critical since the base stations and other infrastructure for ultrafast 5G networks are much less centralized than current 4G systems.”
Huawei’s chairman Liang Hua told reporters at the World Economic Forum in Davos, Switzerland, that it would pull out of partnerships in hostile countries.
Liang said, “We do not pose a threat to a future digital society. The United States has not yet put forward any evidence to justify its claim that Huawei’s equipment could serve as a Trojan horse for Beijing's security apparatus.”
A French start-up company has agreed a deal with a leading Iranian network provider as they announced plans to roll-out IoT services across the country. Some of the services that will be made available to residents in Iran; include the introduction of Intelligent Transportation and gas meters you can monitor from your smartphone.
French start-up, Sig-Fox operates a wireless IoT network which connects a range of IoT applications which enables users to control and monitor everything from fridges to city-wide metro systems by connecting remote sensors with computers, mobile phones and smart watches. Sig-Fox penned a deal with Iranian internet provider Parsnet to deploy its services nationwide in Iran by June, 2017. The organization, feel the collaboration and introduction of IoT services will significantly improve the country’s economy.
Head of Parsnet, Ahmad Jafarabadi, confirmed that Iran will be the 31st country to deploy Sig-Fox’s network. In a statement released by the company, he said: “The arrival of this global connectivity solution opens the door to new economically competitive and energy-efficient services for Iranian businesses.”
Parsnet’s parent company is Pars-Online and is recognized as one of the country’s biggest internet providers. Iran has a population of 80 million – 30 of which use smartphones, with local media reporting that a third of the nation has access to the internet.
Sig-Fox is headquartered in France’s ‘IoT Valley’ which is located close to Toulouse, this announcement comes over a year after an accord came into effect between Iran and other world powers in relation to removing economic sanctions in exchange for limits on Tehran’s nuclear program.