Failure to reach a global agreement on where and how much to tax tech titans such as Amazon, Google, or Facebook would lead to many digital tax regimes emerging all around the world, France’s Finance Minister stated Sunday.
It will likely trigger U.S. retaliatory taxes, U.S. Treasury Secretary Steven Mnuchin told journalists, marking Washington’s determination to prevent tax rules planned by France and other nations if no global agreement is reached.
Speaking to journalists on the sidelines of a meeting of world financial leaders, Bruno Le Maire stated the gathering had been very useful in establishing agreement on such global tax guidelines.
Finance ministers and central bankers from the world’s 20 largest economies, the G20, met in Riyadh for discussions on economic concerns, with digital taxation topping their two-day agenda.
Mnuchin stated the issue was being addressed in talks with the Organization for Economic Cooperation and Development (OECD), and he hoped the end of the year could solve it.
However, he stated Washington would strike back at the digital taxes approved by France and others if those efforts failed.
France and the U.S. have declared a pace to allow multilateral discussions to resolve by the end of 2020.
Silicon Valley, U.S., home to most of the digital titans, has been wary of committing to a solution on taxing them before an election later this year.