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US News Delay in digital tax: OECD warns of trade war

16:20  12 october  2020
16:20  12 october  2020 Source:   ksta.de

Suspicion of serious tax evasion: Search of the DFB

 Suspicion of serious tax evasion: Search of the DFB On the day of the international match against Turkey, the DFB received a visit from the public prosecutor - it is about the suspicion of serious tax evasion. © imago images On Wednesday business premises of the DFB were searched. Due to suspicion of tax evasion in particularly serious cases, the Frankfurt / Main public prosecutor's office searched the business premises of the DFB as well as the private apartments of DFB officials on Wednesday.

The Organization for Economic Cooperation and Development ( OECD ) has warned that countries need to come to an agreement or risk damaging the global economy further. "Under a worst-case scenario — a global trade war triggered by unilateral digital services taxes worldwide — the failure

Italy enacted a tax similar to France’s; it took effect on Jan. 1. Turkey’s government has proposed a digital tax of 7.5%. Legislation proposed in the U.K. last July would impose a 2% levy on the revenues of search engines, social media platforms and online marketplaces that “derive value from U.K. users.”

The international negotiations on the introduction of a digital tax are progressing more slowly than planned due to the coronavirus pandemic and political differences. The Organization for Economic Cooperation and Development (OECD) announced on Monday in Paris that a conclusion will be sought by the middle of next year.

Die Großen im Internet: Google, Amazon und Co. © dpa The big ones on the Internet: Google, Amazon and Co.

Despite progress, the industrial nations organization is under pressure because the topic contains a lot of political explosives. For example, France repeatedly threatened to apply its single-handedly introduced national tax if there was no international solution by the end of the year. The tax had never been abolished, it was now warned by circles of the Paris Ministry of Economics and Finance - only due advance payments were deferred.

Digitization: Digital Enlightenment: Bär's federal center is too short-sighted

 Digitization: Digital Enlightenment: Bär's federal center is too short-sighted Dorothee Bär wants to start a federal center for digital clearing-up - but that is too short-sighted. Rather, what is needed is a center that brings media and digital pedagogical skills. © imago images Digital Enlightenment: Bear's Federal Center is too short-sighted The Minister of State for Digitization's vision of a Federal Center for Digital Enlightenment is too short-sighted and threatens to fail due to the wrangling of the federal government.

Rapid technological developments also facilitate the rise of services in international cross-border trade . The OECD ’s work on digital trade aims to contribute to ongoing debates by helping policymakers better identify and respond to emerging challenges arising from digitalisation.

Work at the Organization for Economic Cooperation and Development , a club of 37 mostly rich countries, spawned a crackdown on havens and loopholes but did less at first to address the thorny issue of how taxing rights are shared among countries. In an effort to tackle that, the OECD has been

US corporations in particular would have to pay

The tax should primarily target large US technology corporations such as Amazon or Google, which, according to critics, pay too few taxes in individual markets with their business model. The USA is therefore rather hesitant. A global minimum taxation is also under discussion - this should make the flight of large corporations into tax havens unattractive.

The entire reform could bring additional taxes of up to 100 billion dollars (around 85 billion euros) worldwide annually, according to the OECD. Its general secretary Angel Gurría presented a framework for the reform that he wants to debate this Wednesday among the finance ministers of the major industrialized and emerging countries (G20). He warned of a trade war if no compromise was found: "A trade war is always bad," he said. Against the background of the Covid 19 pandemic, there could even be a "very serious setback".

The DFB and its tax scandals: caught up in the past

 The DFB and its tax scandals: caught up in the past Once again the German Football Association is shaken by a tax scandal, the old one is neither cleared up nor closed © Photo: Kunz / dpa Back then it was. The presidium of the organizing committee for the soccer world cup 2006 in Germany: Horst R. Schmidt, Theo Zwanziger, Franz Beckenbauer Wolfgang Niersbach. Once again, the German Football Association (DFB) is shaken by the charge of tax evasion. The major raid on Wednesday is about suspicion of tax evasion on income from perimeter advertising.

FAQ on Digital Services Taxes and the OECD ’s BEPS Project. Would an agreement on the taxation of the digital economy at the OECD level, if approved, take precedence over an Because the tax was expected to mainly impact U.S. companies, the U.S. Trade Representative (USTR) opened a

France passed its digital services tax last summer, and although it was known as the GAFA tax , the French government made a point of explaining that it With the prospect of a trade war never having seemed so real, therefore, Bruno Le Maire has now pledged to ease tensions, but has been less clear

The USA had already threatened punitive tariffs in the dispute over the French digital tax. The OECD says it has no information on how Washington and Paris intend to continue to behave in the simmering conflict.

The ministry of the French head of department Bruno Le Maire praised the progress made in the international negotiations. “The work done on a technical level is a solid basis for finally making a political decision.” Paris urged a swift deal.

Gurría said states had rising deficits due to additional spending in the corona crisis. The European Union (EU) is looking for sources of money to pay off the debts of its € 750 billion corona reconstruction program. According to earlier information, income from digital and financial market taxes could also serve this purpose. (dpa)

Taxation of rents: choosing the right tax system .
© bongkarn thanyakij / Pexels Taxation of rents: choosing the right tax system Taxation of “real” rents should be preferred if work has been undertaken in the housing. The withholding of property taxes, via a special system of automatic installments, does not change anything: in the spring of each year, you must declare your final receipts to the tax administration, which proceeds with the regularizations which emerge in the following months.

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