Feeds

Italy's 'Google tax law' could fall foul of EU discrimination rules

Billion-euro attempt to get more taxes out of web firms may be illegal

Internet Security Threat Report 2014

The European Commission has warned that Italy's proposed "Google tax law" would likely break European Union rules on non-discrimination, Reuters reported.

The Italian government first floated the idea of the law last month, which became known as the "Google tax law" for what is seen its obvious target. The rule would require any companies that advertise in Italy to do so through companies with a tax presence in the country. The legislation is clearly aimed at stopping the so-called double Dutch and Irish sandwiches - legal tax dodges made famous by online firms like Google, Apple and Facebook.

Originally, the proposed rule would have applied to firms that sold things online as well, but it was revised this week to exclude products, making it applicable to ad companies only and letting etailers like Amazon off the hook.

The legislation is included in Italy's 2014 budget package, which is due to be voted into law by the lower house today and by the Senate in time for Christmas. Supporters have claimed that the measure could add at least a billion euros a year to the coffers, a much-needed cash injection for the country, which has the second-highest level of debt in the EU after Greece.

Emer Traynor, spokeswoman for Algirdas Semeta, the EU's taxation commissioner, said that the current version of the law could run into trouble with the European Commission.

"We would have serious doubts about the amendment as it now stands, as it appears to go against the fundamental freedoms and principles of non-discrimination set out in the Treaties," she said. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
Intel, Cisco and co reveal PLANS to keep tabs on WORLD'S MACHINES
Connecting everything to everything... Er, good idea?
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.