G20 to discuss raising taxes for big tech firms

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In recent months the actions of big tech firms have come under the spotlight, particularly as it pertains to the way it handles data security and what kinds of regulations should be adhered to.

Now the issue of taxes is coming up once again, as Reuters reports that this subject will be focus for many G20 leaders at a meeting to be held next month.

The publication notes that finance ministers from G20 nations will gather to discuss a number of topics, with one of the most significant being a tax overhaul which would target large multinationals, and specifically the likes of Google, Amazon, Apple and Facebook.

The ministers are set to meet in Washington next week, where they will review proposals put forth by the Paris-based Organisation for Economic Cooperation and Development (OECD). The new rules being outlined could then turn European tax havens like Ireland, where a number of big tech firms operate, less appealing and potentially benefit countries like the United States and France, Reuters adds.

Interestingly the publication notes that big tech firms may not want to contest these overhauls, with Amazon even calling the OECD proposals, “a big step forward.” This as the likes of Google and Apple have bad to pay massive penalties related to taxes in recent years, and the OECD proposals would provide more clarity in this regard.

As such the new rules would outline how much business a big tech firm would need to do in order to be taxable in that country, with it suggested to be in the region of €750 million.

This upcoming meeting is only the first step in a lengthy process, with it needing 134 countries to reach an agreement, which is expected to be some time in late 2020.

[Image – Photo by Thought Catalog on Unsplash]

Robin-Leigh Chetty

Robin-Leigh Chetty

Editor of Hypertext. Covers smartphones, IoT, 5G, cloud computing and a few things in between. Also a keen photographer and dabbles in console games when not taking the hatchet to stories.