Market News International Quotes Bernd Janzen on Possible US-France Digital Tax Deal
Contact:
Akin Gump international trade partner Bernd Janzen has been quoted in the Market News International story “MNI EXCLUSIVE: France May Suspend, Not Rescind Digital Tax.” The article reports that a tax by the French on digital services may be rescinded in the event of a compromise with the United States ahead of what could be a broader deal brokered by the Organization for Economic Cooperation and Development.
According to MNI, a suspension could come as Treasury Secretary Steven Mnuchin and his French counterpart meet this week at the World Economic Forum in Davos, Switzerland. Another option, however, would be for Paris to keep funds owed for 2019, but suspend the tax for the remainder of 2020, temporarily settling tensions while the two parties try to reach a more comprehensive agreement.
With no deal reached just yet, Janzen observed, there remains “the potential for a new irritant to flare up that could complicate the situation.”
As for whether a deal could come this week, Janzen said, “It sounds awfully ambitious to wrap this up so quickly. But maybe it will be. If the U.S. and China can agree to this stage one deal, it should be possible for the U.S. and France to find some compromise here on digital services taxation.”
