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Emmanuel Macron defends France's decision to impose a 3% tax on income of Apple, Google, Facebook and Amazon

24.08.2019 0 Comments

Emmanuel Macron defends France's decision to impose a 3% tax on income of Apple, Google, Facebook and Amazon

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The president called madness that these giants live so freely in terms of paying taxes in Europe.

French President Emmanuel Macron, at the upcoming G7 meeting this weekend, intends to defend France's initiative to introduce a general tax (GAFA) on the profits of international giants. He hopes that other EU countries will support him.

Macron believes that the scheme used by companies is not entirely honest. Here's how it looks on the example of Apple.

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<img aria-describedby = "caption-attachment-217568" class = "wp-image-217568 size-full” title=”The scheme that Apple uses to evade taxes in Europe” src=”https://im.apple-iphone.ru/2019/08/Economist-2.png” alt=”The scheme that Apple uses to evade taxes in Europe” width=”980″ height=”551″ >

Picture can be enlarged

The company directs its profits from sales in Europe through a subsidiary in Ireland. The latter exists only on paper. This company pays for the research and development costs Apple incurred in the United States. It turns out that a subsidiary spends almost all the money to pay for this activity. She has almost no profit left, and in Ireland she pays a mere penny in taxes.

Apple claims that such a scheme is completely legal. After all, the company does not sell something there, but intellectual property. Its creation is fraught with large financial costs that must be covered.

Other technology giants use similar schemes. It turns out that they get superprofits from European sales and leave almost nothing in these countries. Because they show that they work almost to zero.

If such a tax is introduced, then unpleasant times will come for Apple. Recall that Donald Trump puts pressure on Apple to withdraw its production from China. So Apple CEO Tim Cook now has enough problems.

A source

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