No global digital tax by end-2020 would mean chaos: France

Tuesday, 25 February 2020 00:52 - - {{hitsCtrl.values.hits}}

RIYADH (Reuters): Failure to reach a global deal on where and how much to tax digital giants such as Google, Amazon or Facebook would result in many digital tax regimes emerging all over the world, France’s Finance Minister said on Sunday.

It would also likely trigger US retaliatory tariffs, US Treasury Secretary Steven Mnuchin told reporters, underscoring Washington’s determination to thwart tax rules planned by France and other countries if no global deal is reached.

Speaking to Reuters on the sidelines of a meeting of world financial leaders, Bruno Le Maire said the gathering had been very useful in establishing consensus on such global tax rules.

Finance ministers and central bankers from the world’s 20 biggest economies, the G20, met in Riyadh for talks on economic issues, with digital taxation topping their two-day agenda.

Mnuchin said the issue was being addressed in negotiations with the Organization for Economic Cooperation and Development, and he hoped it could be resolved by the end of the year.