Brussels vows to push ahead with digital tax plans aimed at tech giants like Amazon, Google, Facebook and Apple

 
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Europe will continue with plans for digital tax reform (Source: Getty)

Brussels is pushing ahead with digital tax plans aimed at tech giants such as Amazon, Google, Facebook and Apple.

The economic commissioner for Europe Pierre Moscovici said efforts are moving forward to bring the taxation of digital companies in line with traditional firms: "this is happening" he said.

Read more: EU competition chief threatens tech giants with tax reform

"Corporate tax frameworks were conceived in a pre-internet age and are confounded by today’s globalised and digital companies. That calls for a fundamental overhaul of our corporate tax systems," he said.

Proposals will be made by Moscovici next month.

The European Commission last September outlined how it might "ensure that the digital economy is taxed in a fair and growth-friendly way". It comes in the wake of fines against Amazon and Apple over their tax structures.

But Moscovici's insistence comes after some countries have signalled their opposition the tax plans. Ireland, which has attracted several of the Silicon Valley tech giants to its shores over the years with tax deals, have said reforms could hurt its economy.

Any reforms from the commission would come separately to globally coordinated tax reform spearheaded by the OECD which is supported by a number of EU member states.

Read more: Unhappy Valley: Brussels gets tough on tech giants

“From talking bilaterally to a number of my (EU) colleagues since the meeting we had in Estonia (in September), the concerns that we have in relation to digital taxation are broadly shared...I would say by a growing number of countries,” said Irish finance minister Paschal Donohoe in an interview with Reuters at the start of the month.

Competition chief Margrethe Vestager, the enforcer in charge of levying multibillion pound fines against the tech giants, warned late last year that the commission would not hesitate to act.

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