Facebook Unveils Business Suite Tools for Small Companies

In response to COVID-19, Facebook chief executive Mark Zuckerberg and chief operating officer Sheryl Sandberg debuted the Facebook Business Suite aimed at small businesses, which are bearing much of the brunt of the pandemic. Yelp data revealed that business closures from mid-July to end of August rose 23 percent; since March, 60 percent of the business closures have been permanent. According to Facebook, the Business Suite is initially available to small businesses but will expand to larger businesses next year. Continue reading Facebook Unveils Business Suite Tools for Small Companies

European Union Court Overturns 2016 Decision Against Apple

The European Union overturned a 2016 decision that ordered Apple to make good on $14.9 billion in unpaid taxes to Ireland. Apple selecting Ireland as its European base to avoid taxation was the genesis that eventually led to the decision. The European Commission’s top antitrust regulator Margrethe Vestager accused the arrangement of being an illegal subsidy not available to Apple’s rivals and demanded that Ireland recover 10 years of back taxes. Amazon and Google have pending court appeals to overturn similar EU decisions. Continue reading European Union Court Overturns 2016 Decision Against Apple

President Orders Investigation of Foreign Taxes on U.S. Firms

The Trump administration stated that it will open an investigation into digital taxes levied by foreign governments on American commerce. U.S. technology companies such as eBay and Google, among others, are most likely to be impacted. U.S. Trade Representative Robert Lighthizer will conduct the investigation into the European Union as well as Austria, Brazil, Britain, the Czech Republic, India, Indonesia, Italy, Spain and Turkey.  The investigation takes place amid ongoing global negotiations for a consensus solution. Continue reading President Orders Investigation of Foreign Taxes on U.S. Firms

U.S. Joins Global Partnership on AI to Check China’s Power

The United States became the last of the Group of Seven countries to sign on to the G7 AI Pact, an initiative focused on responsible development of artificial intelligence. The Global Partnership on AI will, after study, create recommendations on AI technologies that “respect privacy and civil liberties.” At a G7 meeting of science and technology ministers, U.S. chief technology officer Michael Kratsios and President Trump’s science adviser Kelvin Droegemeier will describe the U.S.’s involvement in the program. Continue reading U.S. Joins Global Partnership on AI to Check China’s Power

OECD Aims to Regulate Where Online Companies Pay Taxes

The Organization for Economic Cooperation and Development (OECD) has devised a proposal to prevent digital giants such as Amazon, Apple and Facebook from avoiding paying taxes. The proposal, which would allow countries to tax such big multinational firms even if they did not operate there, would enable new taxes on all kinds of multinational companies — not just tech firms — that operate online. As of now, many of these digital companies avoid heavier taxes by moving profits to countries with low tax rates. Continue reading OECD Aims to Regulate Where Online Companies Pay Taxes

Incoming EU Commissioners Plan Tax for Digital Companies

Impatient with the slow pace of overhauling corporate taxation to better represent the real profits of international digital companies, European Union commissioners propose that the EU agree on a tax if no global decision is reached by end of 2020. Up until now, individual countries have crafted different approaches to taxation. In France, former digital affairs minister Mounir Mahjoubi said he may file an amendment to a budget bill forcing these same Internet behemoths to reveal how much profit they make in the country. Continue reading Incoming EU Commissioners Plan Tax for Digital Companies

U.S. and France Ink Agreement on Digital Tax of Net Giants

The U.S. and France agreed to a 3 percent French tax to be applied to services from large Internet companies. The agreement specifies that France will repay these companies the difference between its digital tax and the taxes currently under development at the Organization for Economic Cooperation and Development (OECD). French President Emmanuel Macron, at a joint press conference with President Donald Trump, said they had reached a “good agreement,” but that he prefers international taxes on digital services. Continue reading U.S. and France Ink Agreement on Digital Tax of Net Giants

France Inks Law to Tax Tech Firms, U.S. Threatens Probe

France’s Senate has approved taxing Amazon, Google and other large technology companies, despite the threat of a U.S. probe into discrimination. In fact, the vote came hours after U.S. trade representative Robert Lighthizer said he would investigate the French legislation based on the same law President Trump used in the trade clash with China. French finance minister Bruno Le Maire responded that, “France is a sovereign state. It makes sovereign decisions on tax matters and will continue to make sovereign decisions on tax matters.” Continue reading France Inks Law to Tax Tech Firms, U.S. Threatens Probe

World Economic Forum Launches Councils on AI, IoT, More

The World Economic Forum’s Centre for the Fourth Industrial Revolution this week announced the creation of six new councils to address policy guidance in areas including artificial intelligence, autonomous vehicles, blockchain, IoT and precision medicine. Already a source of friction between the U.S. and China, AI is one emerging technology seen by many nations as crucial to future development and competition. As Stanford Institute for Human-Centered AI deputy director Michael Sellitto puts it, “many see AI through the lens of economic and geopolitical competition … [creating] barriers that preserve their perceived strategic advantages, in access to data or research.” Continue reading World Economic Forum Launches Councils on AI, IoT, More

France Slated to Impose Tax on Digital Companies’ Revenue

The French government introduced a three percent tax on the revenue of technology companies such as Google and Amazon that offer e-commerce or targeted advertising in France. Experts estimate that the tax could reap “billions of dollars” from Silicon Valley companies. The tax is also likely to come up as a topic of conversation in U.S. and European talks, convened by the Organization for Economic Cooperation and Development (OECD), about corporate taxes in the digital age. Europe is pushing to tax Silicon Valley companies on profits made there. Continue reading France Slated to Impose Tax on Digital Companies’ Revenue

Apple Agrees to Pay Large Amount in Back-Taxes to France

Apple revealed it has reached a deal with French authorities to pay back-dated taxes, reportedly in the hundreds of millions of dollars. Apple’s French division did not disclose the specific amount, but French media has reported it to be around 500 million euros, or $571 million U.S. “As a multinational company, Apple is regularly audited by fiscal authorities around the world,” explained Apple France in a statement. “The French tax administration recently concluded a multi-year audit on the company’s French accounts, and those details will be published in our public accounts.” Continue reading Apple Agrees to Pay Large Amount in Back-Taxes to France