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 EU Finance Minister has stated "We should no longer accept that these companies do business in Europe while paying minimal amounts of tax to our treasuries,". For some time, EC is concerned about the giant tech companies like Amazon and Google operating within Ireland where provide tax incentives while operating in all Europe land. That construes companies earning are from all EU countries where as they are paying less tax to the country where they are operating. This, in terms of EU norms, are not acceptable. EU considers to apply revenue tax instead of proofit tax which will be based on the earnings subject to tax where earnings is collected. If approved, this would force companies to pay taxes where they are earning rather than where they are operating. This might affect the companies investment plans.

 

Source; Financial Times