PARIS, August 23. /TASS/. The French authorities are stepping up the fight against companies that evade paying taxes and plans to create a black list of digital companies that will not meet the new requirements, introduced this year for the world of high technology. This was stated by the Minister of public action and public Finance Gerald Darmanin in an interview with Les Echos published on Friday.
“We will create a blacklist of platforms which do not cooperate, as for countries — tax havens”, he said. According to Darmanin, this list will get those who don’t pay “tax GAFA”, named after the American digital giants Google, Amazon, Facebook and Apple and approved this summer in France. It will also affect those who do not pay VAT and does not provide income data of users on request of the tax service.
“You have to understand that VAT accounts for the largest number of frauds: 80% of all criminal cases!, — the Minister explained. — We believe that it is possible to return to the budget hundreds of millions and even billions of euros”.
On 11 July the French Senate (upper house of Parliament) finally adopted the draft law on the taxation of the largest companies that offer digital services. This tax will affect the profits of Internet giants received after 1 January 2019 and 3% of total turnover in France. In particular, it will include all companies whose turnover exceeds €750 million worldwide and €25 million in France, and whose sphere of activities encompasses Internet advertising, sell online, or work platforms, aggregators of information. In 2020, tax revenues from it corporations is expected to grow to €650 million
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