The BBC explains that there needs to be a global agreement on technology company tax. Without such an agreement, there could be a risk of a mess with different countries doing their own thing. The decision came as France agreed to delay a new tax on multinational technology companies after clear unease from Washington. The organisation charged with brokering a global compromise has said the UK should hold fire on its digital sales tax. Read the full story on BBC
The New York Times reports on how tech taxes are becoming a hot topic of debate and discomfort between the US and the European Union. With foreign governments’ looking to tax American tech giants that supply internet search, online shopping and social media to their citizens, this question is emerging as the largest global economic battle of 2020. Read the full story on The New York Times
The Guardian said that the chancellor, Sajid Javid, has insisted that the UK will go ahead with plans for a tax on tech companies in April despite pressure from the US to drop the idea. The US treasury secretary, Steven Mnuchin, said the proposed digital services tax is discriminatory against US multinationals and there would be retribution – probably a tax on UK car exports to the US – if the 2% levy were to be imposed in April. Read the full story on The Guardian
City A.M. opened the debate: Is it worth scrapping the planned digital services tax for the sake of a UK-US trade deal? The newspaper gives two points of view: Morgan Schondelmeier, head of development at the Adam Smith Institute saying yes while Areeq Chowdhury, head of Think Tank at Future Advocacy, saying no. Read the full story on City A.M.
The Evening Standard reported that an open letter signed by a group of more than 120 billionaires, millionaires, celebrities and business figures has been released at the World Economic Forum in Davos. They demand to pay more tax because they’re among “the most privileged class of human beings to walk the Earth.” Read the full story on Standard