News Report States Facebook And Google To Face Tax Bills By Israel

Adding to the attempts by a number of countries that include the European Union, in internet companies Google and Facebook are most probably going to be slapped with tax bills within a year by Israel which is planning and preparing to do so, according to the financial newspaper TheMarker on Wednesday.

The process of preparing the tax bills for the two companies was underway, reported the newspaper report citing information from Moshe Asher, chairman of Israel’s Tax Authority. The process of what calculations are to be made for the tax bills is now being done by the authorities.

The amount of tax and more specifically the rate of tax that the Israeli authorities should be charging the internet giants for making profits form Israeli customers is what now remains to be decided according to information revealed in the newspaper report.

“Ultimately, taxes can be charged based on their operations in Israel,” Asher told TheMarker. “Our goal is to obtain as much data as we can, even if many of these figures are held outside of Israel. Within a year we’ll issue these companies tax bills.”

While there were no more comments made by Asher, the comments of Asher were confirmed by a spokeswoman for the authority.

There were no immediate comments from Google and Facebook.

The OECD has been on the road to strategies by global corporate that seek to avoid international tax and the new Israeli policy would add to that wider effort on pressurizing such corporate. On the other hand, efforts to crack down on the tax avoidance of internet companies’ turnover is being threatened to be done along by the EU.

An inspection committee was being appointed by the OECD, Asher said.

“We believe in the process, and ultimately we’ll be able to issue justified tax bills, even if we’re among the first in the world,” he said.

With the considerations and basis of the permanent place of a company in Israel and whether such companies have a permanent presence in the country, the corporate tax rate in Israel is 24 percent of profits.

It may be recalled that Apple was ordered to pay Ireland 13 billion euros or $15.4 billion in pending taxes by the European Commission in August 2016.

(Adapted from Reuters)


Categories: Economy & Finance, Regulations & Legal, Strategy, Uncategorized

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