Interested to read that Apple’s CEO, Tim Cook has acknowledged that the global corporate tax system needs to be overhauled, thus becoming one of the first CEO’s of major tech businesses to endorse potential changes to global rules.
The growth of tech giants such as Apple, Amazon, Google and Facebook has pushed international tax rules to the limit, prompting the Organisation for Economic Cooperation and Development (OECD) to look at the political and economic issues relating to how multinational businesses should be taxed.
Mr Cook is quoted as saying, “I think logically everybody knows it needs to be overhauled, I would certainly be the last person to say that the current system or the past system was the perfect system. I am hopeful and optimistic that they (meaning the OECD) will find something”.
Whilst Tim Cook understands some of the issues relating to perceived fairness and taxation, others are pushing back.
Just last week, Douglas Gurr, who is Amazon.com’s boss in the UK warned against rumoured plans for a two per cent digital services tax in the next UK budget insisting that it would increase costs for small businesses.
This news coincides with further discussions taking place between France and the United States relating to a potential 3 per cent levy on large-scale digital businesses in France.