Is there future for the common EU digital tax? Prof. George Dimitrov comments hot topics in the morning block of Bloomberg TV
12 April 2019
Prof. George Dimitrov, a managing partner at Dimitrov, Petrov & Co. Law Firm and Chairperson of the Law and Internet Foundation, was a guest in the morning block of Bloomberg TV. He gave his expert commentary on hot topics related to the activity of global technology giants, which are now in the focus of governments and the general public.
While the European Union continues to seek a fair taxation formula for the large technology companies, countries such as France, Austria, Spain and Italy have announced plans for introduction of the so-called digital tax. Prof. Dimitrov brought attention to the complexity of the issue and its both economic as well as political dimensions. On the one hand, the low tax-rates of some smaller European countries have attracted global leaders such as Google, Apple, Facebook, which report their regional business in these countries. This provides a significant fiscal revenue that governments are reluctant to lose if a new unified tax approach is to be introduced within the Community.
On the other hand, the big global companies whose huge profits have focused the attention of legislators in Europe, originate from the United States. This explains Germany’s hesitancy and a softer approach due to its fear of the American administration’s reciprocal response, such as imposing of high duties on imports of luxury cars for example.
Prof. Dimitrov believes that unanimous agreement on equal flat-rate digital tax for all EU Member States is hard to achieve and would lead to the replacement of some of the basic principles of the Community.
Тhe content control measures that Facebook is planning to introduce for the upcoming European Parliament vote was the the second topic which prof. Dimitrov commented in Bloomberg's morning block. Being a proven expert in information technology, he presented the Internet providers’ point of view. He brought attention to the vast amount of information that is being handled by these companies and which is virtually impossible to be controlled and verified by technical means. The inclusion of human factor would lead to unacceptable increase in the cost of Internet services. Due to these reasons, the measures for ensuring the reliability of information disseminated via Internet cannot be а sole responsibility of the technology companies.
You can watch the full interview with Prof. George Dimitrov here (in Bulgarian).« Previous Next »