– Booking.com avoided 715 million euro of tax in the EU –
“Internet giants have no physical presence, so they can hide from the tax collector. Due to the outdated legislation, they can very easily push their profits to countries with the lowest rates. As a result, they pay much less tax. A company, such as booking.com, manages to avoid more than 700 million in taxes. Challenges presented by the digital economy are not addressed in the current tax system. It is time for a modern system.”, says MEP Paul Tang, who has been working on a proposal for a European corporate tax base.
The common consolidated corporate tax base will ensure that companies pay taxes there where their activity takes place. Multinationals will not be able to decide where they book profits and pay taxes, but it will be up to the member states.
Previously Paul Tang looked into the tax practices of Google and Facebook. This time he shed light on the world’s largest online-travel company Booking.com (Priceline Group Inc.). Again, the outcome is astonishing: Booking.com avoided approximately 715 million euro of tax in the EU over 2012-2016.
“This report sets a new standard for corporate taxation, which is hugely needed. Right now, corporate taxation is levied nationally. Thanks to globalisation and digitisation, big companies can meticulously plan the most profitable tax strategy, taking full advantage of differences among national taxation systems. This proposal will put an end to these practices.” says Paul Tang.
On Wednesday the European Parliament will have a debate on the proposal followed by a vote on Thursday. A week later the European Commission will present its proposal for new tax rules on internet giants.
Quickscan Booking.com: Booking.com avoided 715 million of tax in the EU
Quickscan Google & Facebook: EU Tax Revenue Loss from Google and Facebook
More information on CCCTB (video): A Fair and Efficient Tax System for All