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Digital Tax Proposals Produce New Discord in the EU

Feb 14, 2018 | 15:37 GMT
Members of the French activist group Attac rally in Paris on Feb. 12, 2018, against Apple Inc., which they accuse of tax evasion.

Members of the French activist group Attac rally in Paris on Feb. 12 against Apple Inc., which they accuse of tax evasion.

(STEPHANE DE SAKUTIN/AFP/Getty Images)

The European Union is getting ready to debate the way corporate taxes are calculated and paid. In the coming months, the European Commission and large countries like Germany and France will present proposals to change regulations that allow companies, especially in the digital sector, to report their income and pay taxes in low-tax nations even if most of their earnings are generated in countries where taxes are higher. But many smaller member states, such as Ireland and Luxembourg, see this potential change as a threat to their economic models. A battle between large and small member states could result, creating further divisions in the European Union at a time the bloc is trying to introduce reforms in several areas....

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