EU: Tax on Internet ads among Europe’s proposals to plug digital tax gap - by Natasha Lomas

Europe’s executive body has revealed more of its thinking on reforming taxation rules to reflect how digital businesses operate, issuing details of proposals it’s considering ahead of another meeting of EU ministers next week.

Options on the table for EU countries to discuss are a turnover tax, a levy on Internet ads or withholding money on Internet transactions, the EC said today.

Last week a group of European Union finance ministers, led by France, called for a turnover tax on tech giants — aka what’s also referred to as an “equalization tax” — which would seek to avoid the problem of multinationals shifting profits to lower tax economies by taxing them on the revenue generated in each nation.

At the time the EC said it welcomed the Member State’s interest in the issue, noting it has been working towards tax reform proposals for “a number of years”.

Read more; Tax on Internet ads among Europe’s proposals to plug digital tax gap | TechCrunch