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Spain planning on going ahead with ‘Google tax’ despite US tariff threats

elpais.com

21–30 of 275 posts

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#21
post #12

Earlier quoted context omitted.

Spain has very few large technology companies relative to the US. This tax is effectively a tariff on US technology companies operating in Spain, making it no longer an internal affair.

Last time I checked, comapnies are subject to the laws of countries they operate in.

Not trolling, but is there anything that says they're breaking the current laws in Spain? (I'm from the UK, so no dog in this fight althought I can see our gov implementing it at some point I reckon)

Sure, they're taking advantage of tax loopholes I'd bet but in themselves, they're not necessarily against the law.

They're probably paying all the tax in Spain they're currently, legally obliged to pay at the moment.

Just my £0.02

Edit: Just thought of something? Is there a google.es? If this is what they are talking about, would it not be easier for Google just to bin that one and for Spaniards to be automatically redirected to another Spanish-speaking version, like one of the South American ones?

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#22
For me it makes total sense to tax Google, Facebook and all others. Why not? What do you to lose? Parking your IP in some remote country, be it Ireland or Turks and Caicos, is fine until you realize that the IP protection is not as bullet proof as you thought. And please don't come to California to sue to protect your IP. I still can't believe that none of those companies are paying Federal nor state taxes. For now. Well, they do pay some insanely low taxes.

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#23
post #14
post #8

Earlier quoted context omitted.

[flagged]

You can always follow USA where minimum wage is not enough to live :) - the wonders of the right.

The USA minimum wage is definitely enough to live on, and comfortably. (Just not in the USA)

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#24
post #2

These are patchwork solutions. It would make more sense if EU countries would make laws that extend normal VAT to all internet business in EU and close all Irish loopholes. Google and others use Irish tax arrangement schemes like "The Double Irish" (base erosion and profit shifting), the Single Malt, and CAIA to avoid paying taxes. 12 EU states reject move to expose companies' tax avoidance https://www.theguardian.co…

That has already happened to some degree, we just need to expand it and simplify it. Within the EU you have to pay the VAT of the country of the buyer for "digital services". But shouldn't Google and Amazon already be subject to that since they have EU subsidiaries?

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#25
post #12

Earlier quoted context omitted.

Last time I checked, comapnies are subject to the laws of countries they operate in.

Not trolling, but is there anything that says they're breaking the current laws in Spain? (I'm from the UK, so no dog in this fight althought I can see our gov implementing it at some point I reckon) Sure, they're taking advantage of tax loopholes I'd bet but in themselves, they're not necessarily against the law. They're probably paying all the tax in Spain they're currently, legally obliged to pay at the moment. Ju…

There's no such thing as a tax loophole. It's the law, and is written specifically the way it is for a reason. "Loophole" by definition implies that it's a mistake, and with the amount of money at stake that's incredibly unlikely.

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#26
post #8

Earlier quoted context omitted.

It's not about the money - it's about sending the message. No pun intended.

[flagged]

So what do you propose? This is an honest question. Those companies act in strictly amoral fashion (even within the law of a given country, breaking laws of others).

They basically steal public money by not contributing taxes, so that general population (=we) has to pay up the rest via increased taxation, or public welfare, education, medicine, research, social system etc. suffers because of lack of funds.

Increasing net worth at all costs of types like Bezos, Zuckenberg or Brin at the cost of everybody else is not in interest of humankind in any imaginable way.

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#27
post #6

I don't understand why the US constantly interferes in the internal affairs of other countries like this

Because they aren't internal - they are impacted by it with broad reach.

There have been many stupid attempts to target Google in the past from vested interests (snippet tax, link tax) - but this one isn't very objectionable.

The main legitimacy to the complaint is that even though nation neutral it is defacto targetted by industry concentration because of the lack of international Spanish internet companies. A flimsier one but there. The second is the populist rhetoric to sell it caused offense by targetting their companies. Plus countries in international relations are best anthropoisized as a bunch of hypocritical petty bastards.

A flatter 3% corporate tax rate wouldn't have those grounds but would piss off the local corporate interests and possibly ideologe powers abroad still.

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#28
post #23
post #14

Earlier quoted context omitted.

You can always follow USA where minimum wage is not enough to live :) - the wonders of the right.

The USA minimum wage is definitely enough to live on, and comfortably. (Just not in the USA)

Lots of minimum wage remote work in the US?

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#29
I wish the article had more info on the mechanics of the tax. How do they measure “value” and what percent of the value do they want to collect as tax?

The ad sales might make sense, but why not just add a tax on all advertising.

The marketplace tax is confusing because do they tax the value of the transaction? The full customer value that results of the acquisition? Why not just use existing sales tax for retail transaction (which e-commerce is).

The last one is the hardest to understand. Do they mean sale of data from Spanish citizens? Or only people created data while in Spain?

It seems simpler to just create a “data sales tax” that happens specifically for transactions where data is sold to or from Spanish orgs.

I think this will just result in a tarrif on Spanish goods.

Re: Spain planning on going ahead with ‘Google tax’ despite US tariff threats

#30
post #5

Earlier quoted context omitted.

The EU will never close tax loopholes since there will always be a veto from the likes of Ireland, Netherlands, Luxembourgh or UK.

Wow. The EU requires unanimous approval. The Europeans looks at the US’ Articles of Confederation and said, “we can make that work.” They need a rogue group of reformers that create a new system of government, illegally, like the US’ Federalists. Only then will the EU get its shit together.

Only for matters considered critical and sensitive for member states - finance, EU membership, harmonisation of legislation etc. it's mostly a hold over from the days of an EEC with 6 or 9 members (ie, right back when UK and Ireland joined in 73), when unanimity worked much better than it can now. Obviously to step back from unanimity requires unanimous vote without use of veto. :)

Most matters are done under qualified majority - which is a small super-majority based on population.

A post-Brexit UK going full on offshore tax haven might encourage the EU to get their act together on finance, and come up with some ways to crack down. Well, one can hope...

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