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BUSINESS Thursday 28 January 2021

Debate heats up over how countries tax Big Tech companies

By DAVID McHUGH cess “are threatening to strained by added spend- resolved” in the talks.
AP Business Writer trigger a trade war.” ing and less tax revenue. “If you bring in other con-
FRANKFURT, Germany (AP) U.S. trade officials have Said KMPG’s Corwin: “A sumer-facing businesses,
— An international debate called unilateral digital tax- lot of the countries have the U.S. as a big market
over how countries tax big es unfair and threatened said, “We’re holding for the would gain taxing revenue
U.S. technology companies trade retaliation against OECD to get to an agree- from some of those foreign
such as Google, Amazon French goods, but have ment,’ but the combina- consumer-facing busi-
and Facebook is heating held off imposing sanctions. tion of the politics on the nesses that serve the U.S.
up, presenting a challenge Finance officials from more ground of wanting to im- market while potentially
for President Joe Biden’s than 130 countries con- pose these taxes, as well as losing some tax rights over
new administration. vened online Wednesday the fiscal demands of the U.S.-headquartered digital
A mid-year deadline is on to resume negotiations financial fallout of the pan- businesses,” she said.
the horizon for talks about over how best to make demic, is increasing the Karan Bhatia, Google’s
a global deal to defuse sure multinational compa- pressure for governments vice president for govern-
trade disputes with France nies don’t avoid taxation to act.” ment affairs and public pol-
and other countries that by shifting their activities Most participants want an icy, said in a blog post that
are imposing go-it-alone and profits among coun- international agreement the need to update the in-
digital taxes that the United tries. One key question is rather than runaway uni- ternational tax system “isn’t
States views as discrimina- how to appropriately tax This photo combo of images lateral measures, she said, limited to the technology
tory. companies such as tech shows the Amazon, Google “but the politics and the fis- sector. Almost all multina-
France imposed a 3% tax firms that may have no on- and Facebook logos. cal demands are creating tional companies use data,
on digital revenue for large the-ground presence in a Associated Press an inability to wait much computers and internet
tech companies, in effect country but nonetheless do longer than June.” connectivity to power their
singling out the U.S. tech substantial digital business creasing by the day,” Gur- There is no agreement in products and services.”
giants. The French govern- there in the form of online ria said. Over 40 countries several key areas. One Bhatia said Google “strong-
ment has said it would with- advertising, the sale of user are considering or planning open question is whether ly supported” the OECD’s
draw the tax in favor of an data, search engines, or unilateral digital taxes, and technology companies work and opposed “dis-
international solution being social media platforms. if they impose them, “there shoulod be singled out, criminatory unilateral tax-
negotiated under the aus- The talks are about how to will be this retaliation, we since digital technologies es.”
pices of the Organization allocate part of a compa- will turn a tax tension into a are spreading throughout Facebook’s Mark Zucker-
for Economic Cooperation ny’s revenue to the country trade tension, maybe into a the economy? Under U.S. berg has said the company
and Development, a Paris- where its services are used trade war...when we need pressure, the talks expand- wants the OECD process to
based international orga- so the government there the opposite,” he said. ed to potentially include succeed “so that we have
nization of 37 advanced can benefit from the taxes. The coronavirus pandem- other kinds of consumer- a stable and reliable sys-
economies. The two-day meeting is to ic has only put a sharper facing businesses that also tem going forward.” Ama-
Experts and officials say assess where things stand edge on the issue of digi- reap profits across borders, zon said in a statement that
time is getting short. Manal and no final decision is ex- tal taxation. The pandemic such as luxury brands. “we continue to strongly
Corwin, a tax principal at pected. OECD Secretary- has accelerated digitaliza- Barbara Angus, global tax and consistently support
professional services firm General Angel Gurria said tion through remote work policy leader for profes- and contribute to the
KPMG and a former Trea- in an opening speech that and contactless activities, sional services firm EY, said OECD’s work” and called
sury Department official in it was crucial to reach a and in some cases led to the question of exactly for a broad international
the Obama administration, deal by mid-2021. strong profits for digital whom the new digital tax agreement that would limit
said digital taxes multiply- “The importance of reach- companies; meanwhile, applies to was “the single “distortive unilateral mea-
ing outside the OECD pro- ing an agreement is in- government budgets are biggest political issue to be sures.” q

Walmart to build more robot-filled warehouses at stores

By JOSEPH PISANI bots to keep up with a to build warehouses at its are brought outside to real and other small goods
AP Retail Writer surge in online orders. stores where self-driving shoppers’ cars. The option, to Walmart workers, who
NEW YORK (AP) — Walmart The company said robots will fetch groceries along with deliveries, be- then bag them for shop-
is enlisting the help of ro- Wednesday that it plans and have them ready for came increasingly popu- pers. Rival Amazon uses
shoppers to pick up in an lar as virus-weary shoppers similar technology in its
hour or less. avoid going inside stores. warehouses, with robots
Walmart declined to say At the start of the pandem- bringing books, vitamins
how many of the ware- ic last year, Walmart said and other small items to
houses it will build, but delivery and pickup sales workers to box and ship.
construction has started grew 300%. Walmart said the robots
at stores in Lewisville, Tex- The company said the save time since employees
as; Plano, Texas; Ameri- robots won’t roam store don’t have to walk store
can Fork, Utah; and Ben- aisles. Instead, they’ll stay aisles to find items. Work-
tonville, Arkansas, where inside warehouses built ers will, however, have to
Walmart’s corporate of- in separate areas, either go into the store to pick
fices are based. A test site within a store or next to it. out fresh groceries, such as
was opened more than a Windows will be placed at meat, fish and vegetables.
year ago at a store in Sa- some locations so shop- They’ll also have to grab
lem, New Hampshire. pers can watch the robots TVs, vacuum cleaners and
In this Tuesday, Aug. 4, 2020, file photo, signage is pictured at Walmart hopes the ware- work. other large items that are
a Walmart store in Oklahoma City. houses will speed up curb- The wheeled robots carry too large for the robots to
Associated Press side pickups, where orders crates of apple juice, ce- carry.q