EU eyes solo move to increase tax on online giants, risking U.S. anger
BRUSSELS (Reuters) – The European Commission said on Thursday it may seek to implement tax reform to raise more revenue from online giants without the backing of the United States and other rich nations, in a move that could spark a new transatlantic dispute.The EU is frustrated at how long it is taking the worlds rich nations to reach a deal on how to tax online firms like Google (GOOGL.O) fairly. These companies on average pay bills in Europe that are less than half of those of other firms.To prevent some smaller EU economies such as Ireland or Luxembourg, which host many foreign online businesses, from blocking the move, the commission is also raising the prospect of using little-known EU rules that would prevent states from vetoing decisions on tax matters. Usually the EU decides on tax issues only with the unanimous support of its 28 members.
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