LONDON – French Finance Minister Bruno Le Maire on Monday welcomed support from the administration of President Joe Biden on a global tax proposal to technology giants, saying a multilateral agreement could enter into force as soon as possible like this spring.
It comes shortly after Biden’s nominee for Treasury Secretary Janet Yellen expressed support for calls to tech companies to pay a larger share of their revenue to the countries where they operate.
Former President Donald Trump had strongly opposed the proposed tax provisions, saying they discriminated against U.S. companies.
Speaking by video conference at the Davos Agenda summit, Le Maire said: “I think it’s very good news that the new Secretary of the Treasury, Janet Yellen, has just explained that she was open to the idea of thinking a new international taxation with the two pillars: First, digital taxation and, of course, also a minimum tax on corporation tax ”.
“I think we are on the right track. There is a possibility of finding an agreement on this new international tax system by the end of this spring of 2021. And I can tell you that we will make every effort to pave the way for an agreement. “Le Maire told CNBC’s Geoff Cutmore.
Yellen had backed calls for a new global tax on tax giants during a Senate confirmation hearing last week.
“It would allow us to raise a fair share of corporations while maintaining the competitiveness of our companies and decrease the incentives that American companies now have for offshore activities,” Yellen said, according to cable service Agence France-Presse on 20 January.
French Economy and Finance Minister Bruno Le Maire speaks at a press conference in Paris on January 14, 2021.
THOMAS COEX AFP | Getty Images
International taxation
Le Maire added: “The winners of the economic crisis are the digital giants. How can you explain to some sectors that have been severely affected by the crisis and are paying (their) level of taxes that the digital giants will not have to pay? Do you pay the same amount of taxes? “
“This is unfair” and inefficient, he said.
When asked if it was prudent for France to try to impose corporate taxes in the midst of the coronavirus pandemic, Le Maire replied: “We must do everything possible to maintain the same level of investment, otherwise we run the risk with countries open to emerging from the technological race of the 21st century. And we have to think about the kind of economy we want to build. “
“We want to build a sustainable economy. We want to reduce inequalities between nations. And we also want to reduce inequalities in the international tax system.”
The World Economic Forum is being held online this year due to the coronavirus crisis. A physical congregation of business leaders, political thinkers and world heads of state is expected to take place in Singapore in May.