France Shouldn't Act Unilaterally on Tech Tax, NFTC's Yerxa Says

The transcript discusses the new French digital sales tax, which targets companies based on gross revenues rather than income, primarily affecting large American digital companies. This tax is seen as a threat to international tax stability and is considered arbitrary. The US may respond using Section 301, which allows for trade restrictions against unreasonable foreign policies. The OECD process is suggested as a better approach for handling digital economy taxation. Concerns are raised about the potential for tax regime fragmentation in Europe, with hopes for a multilateral solution.

What is the primary basis for the new French digital sales tax?

• Net worth

• Profits

• Income

• Gross revenues

Which companies are primarily targeted by the French digital sales tax?

• Asian tech startups

• European manufacturing companies

• Large American digital companies

• Small French companies

How does the French tax determine the portion of global revenues attributable to France?

• By the company's headquarters location

• Based on the number of employees in France

• By calculating the percentage of digital services activities in France

• Through the total number of transactions worldwide

What is the purpose of Section 301 in the context of the French digital sales tax?

• To provide tax exemptions for American companies

• To negotiate trade agreements

• To investigate foreign policies that may be unjustifiable

• To impose tariffs on French goods

What is the OECD's role in addressing digital economy taxation?

• To regulate international trade agreements

• To provide tax incentives for digital companies

• To update rules on digital economy taxation through multilateral cooperation

• To enforce unilateral tax systems