Voice of America
27 Jan 2021, 07:05 GMT+10
PARIS - The U.S. Senate's confirmation of U.S. Treasury Secretary Janet Yellen has raised hope on the other side of the Atlantic. Yellen said the U.S. administration remains committed to working to resolve digital taxation disputes, a remark that Europeans are reading optimistically.
In this file photo taken on Dec. 1, 2020, Janet Yellen speaks during a cabinet announcement event at The Queen Theater in Wilmington, Delaware.
Overall, Yellen explained that the new administration supports the call for tech companies to pay more taxes, a statement that won praise from French Finance Minister Bruno Le Maire, who spoke at the World Economic Forum.
"I think it is very good news that the new Secretary for the Treasury Janet Yellen just explained that she was open about the idea of thinking about a new international taxation with the two pillars: First of all, digital taxation and, of course, also a minimum taxation on corporate tax," Le Maire said. "I think we are on the right track. There is a possibility of finding an agreement on this new international taxation system by the end of this spring 2021."
German Finance Minister and Vice-Chancellor Olaf Scholz addresses a press conference following talks via video conference with Germany's state premiers in Berlin on Dec. 13, 2020.
The comments echoed those by German Finance Minister Olaf Scholz. He told Reuters on Tuesday he hopes an international agreement on digital taxation will happen by summer.
Google, Apple, Facebook, and Amazon are dubbed as GAFA in France by those who criticize what they say are the multinationals' longstanding avoidance of European taxes.
For years, former U.S. president Donald Trump had opposed any proposal to tax the tech giants.
The Organization for Economic Cooperation and Development (OECD) hosted the international talks over digital taxation. Members postponed a deadline for an agreement into 2021 after the U.S. pulled out of talks in June last year due to the coronavirus pandemic.
The French finance minister said it is a matter of fairness.
"The winners of the economic crisis are the digital giants," Le Maire said. "How can you explain to some sectors that have been severely hit by the crisis and that are paying their due level of taxes that the digital giants will not have to pay the same amount of taxes? This is unfair and also inefficient from a financial point of view."
Last October, the OECD warned that tensions over a digital tax could trigger a trade war that could wipe out one percent of global growth every year.
Get a daily dose of Asia Pacific Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Asia Pacific Star.
More InformationNew Delhi [India], February 26 (ANI): Indian boxer Deepak Kumar continued his sensational run at the 72nd Strandja Memorial Tournament ...
New Delhi [India], February 26 (ANI): External Affairs Minister (EAM) S Jaishankar on Friday said that governments should support the ...
Manila [Philippines], February 26 (ANI/Xinhua): The Department of Health (DOH) of the Philippines reported on Friday 2,651 new COVID-19 cases, ...
London [UK], February 26 (ANI): Global container shipping companies' performance will be strong in 2021 after a profitable 2020, according ...
Mumbai (Maharashtra) [India], February 26 (ANI/NewsVoir): Aditya Birla Health Insurance Company Ltd. (ABHICL), the Health Insurance subsidiary of Aditya Birla ...
BANGKOK - The government of Laos issued new guidelines for managing hydropower dams aimed at minimizing water shortages and flooding, ...
SYDNEY, NSW, Australia - Shares across Asia were slammed on Friday sending the major indices tumbling."The bond market is signalling ...
The US is witnessing the strongest housing market boom since 2014, with record-low mortgage rates and a limited supply of ...
NEW YORK, New York - U.S. stocks tumbled on Thursday as U.S. Treasury yields rose. sparking inflationary fears.Technology stocks took ...
The winter storms that have swept across the U.S., particularly Texas, upending the energy market and knocking out power for ...
RIO DE JANEIRO, Brazil - Shares of state-owned oil company Petrobras fell 22 percent on Monday, wiping out $13 billion ...
SYDNEY, NSW, Australia - Stocks in Asia rose across the board on Thursday, in line with the global trend, following ...