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Italy weighs 'Google Tax' to raise revenue

Written by James Delahunty (Google+) @ 04 Nov 2013 21:15 User comments (3)

Italy weighs 'Google Tax' to raise revenue Elements of the Italian government support measures that would boost tax revenue from Google, Yahoo, Amazon and other major web giants.
Instead of simply taxing the companies directly, a bill has been tabled that oblige companies that advertise and sell online in Italy to do so only through agencies that have a tax presence in the country. The extra revenue to such agency would translate to extra tax to the government. The plan is to raise 1 billion in additional revenue.

The bill was drafted by lower house budget committee Chairman Francesco Boccia, who said it was unacceptable that online companies pay tax abroad on revenue from sales they makes in Italy.

"We shouldn't be trying to raise resources by hiking taxes on fuel, cigarettes or small retailers while our online purchases are raising the profits of companies that have no interest in developing our economy," Boccia said on his website.

Opponents of the proposal have gone as far as to say it is based on wishful thinking that lacks knowledge of how Internet commerce and advertising work.

The Italian government is far from the only one complaining about the level of tax revenue from multinationals however, who are very skilled at paying as low overall tax as possible.

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3 user comments

15.11.2013 9:59

Well, good to see Italy finally realize big corporations will do anything to find tax loopholes no matter the country. However they seem to fail to see what most senators here in the states missed. The lost revenue, and possibly jobs if they have to remove their presence in the country would hurt the customers more than any tax. Not to mention the price hike that google/amazon/etc would enact to make up for the taxes.

Instead of raising taxes why not fire 1/3 of the govt staff that got them into the financial crisis to begin with?

This message has been edited since its posting. Latest edit was made on 05 Nov 2013 @ 10:00

25.11.2013 13:57

Or get a clue and cut spending...


Just my $0.02,

dEwMe

35.11.2013 18:40

Quote:
big corporations will do anything to find tax loopholes
In my own situation (Canada), the party formally known as a democratic socialist party (they have recently dropped all reference to socialism) - are strictly against 'tax loopholes' for business - they are however in favour of 'tax incentives' for business;of course it's up to the true believer to figure out the difference.

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