Donohoe to question internet company tax proposal

Minster for Finance Paschal Donohoe is expected to robustly question a French plan to tax internet companies that operate in the EU at a meeting of finance ministers today. 

The proposal, which is backed by Germany, Italy and Spain, is to be discussed at a meeting of European Union finance ministers in Estonia later today.

Like all tax policy, the proposal can be vetoed by Ireland or any other single member state.

Mr Donohoe is expected to robustly question the proposal to tax internet companies that operate in the European Union. 

French finance minster Bruno Le Maire says many people across Europe cannot understand how big internet companies can do business in Europe, yet pay very little corporation tax. 

He said if European politicians fail to respond to the demands of citizens for what he called fair taxation, those citizens may turn to more extreme political movements – recalling that French President Emmanuel Macron had to beat an extremist party to win the presidency last May.

French finance minister Bruno Le Marie

The plan calls for a turnover tax on large internet companies, divided up among the countries where those firms do business.

It has echoes of the European Commission’s plan for a common consolidated corporation tax, and Ireland is expected to take a negative stance on the idea. 

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