Amazon and Google will soon become forced to cover their corporate taxes in Europe


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Countries such as France, Germany, Italy and Spain want technology giants such as Amazon or Google to cover their payments.

The European finance ministers have formulated a common letter demanding their financial institutions to introduce this new form of tax meant to target the world’s biggest retailers, writes Reuters.

Major technology groups are accused of speculating the tax laws and transferring income produced into the European Union to permissive jurisdictions, usually Ireland, to get rid of corporate tax.

Apple, for example, was forced to pay 13 billion euros in retroactive tax because they were benefiting from a preferential tax regime in Ireland.

In France, Google was ordered by a court from Paris to pay 1.1 billion euros for managing its operations in Hexagon through its Irish subsidiary.

Finance ministers in these countries claim that a new tolling system is needed in order to tax their revenues.

EU Finance Ministers will discuss the tax changes issue in order to collect more money from online giants, such as Google, Amazon, or Facebook, writes Reuters, quoting an official document.

These economic giants are put under major pressure in Europe due to the small taxes they pay. European countries cannot tax them because they are not physically present, operating only in certain countries, such as Ireland, the Netherlands or Luxembourg.

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