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French Senate Finance Commission Accepts Proposed 'Google' Tax,
by Ulrika Lomas, Tax-News.com, Brussels
Monday, February 15, 2010
The Senate Finance Commission has adopted an amendment to the country’s
2010 supplementary finance bill (le collectif budgétaire pour 2010), providing
for the introduction of a tax levied on online advertising.
According to the general rapporteur of the Commission, Philippe Marini, the
amendment serves as an “appeal”, designed to initiate a debate on
the issue in France. Defending the decision, Marini emphasized that the Internet
should not be allowed to escape a levy imposed on traditional media.
The amendment stipulates that any Internet service provider, established within
the European Union, and providing a service in France, would be liable to pay
a 1% tax on their advertising revenue.
Presented recently to the French Culture Ministry, the Zelnik Commission’s
report entitled “Creation and Internet”, proposed the introduction
of such a levy to finance the development of cultural services over the Internet.
Indeed, according to Marini, the tax would serve to generate in the region of
EUR20m.
Approved by the National Assembly, the 2010 supplementary finance bill has
yet to be examined by the Senate.
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