taxes

Google, Facebook, Amazon may be subject to French taxes

With the Internet being a relatively new concept, governments are still working out how to manage, secure, and legalize the Web. The French government, in particular, has been studying how U.S. companies -- such as Facebook, Google, and Amazon -- are making lots of money from its residents but are paying very little in local taxes.

As a response, French President Francois Hollande has commissioned a report that looks at a new idea: taxing the Internet.

According to the New York Times, the report, which was released on Friday, details a tax that would be levied against Internet-based tech … Read more

India tax officials raid Nokia facility

A Nokia facility in Chennai, India, was raided earlier today by country tax authorities.

According to Reuters, which was first to report on the incident, Nokia confirmed to the news service that a raid was conducted on an office in the southern India city and that the company is cooperating with the probe, but declined to provide further details. An Indian tax official told Reuters that the raid relates to allegations of possible tax evasion against the smartphone maker.

The tax default is believed to be around 30 billion rupees ($543 million), the official told Reuters.

Technology companies commonly find … Read more

Look into tech companies' tax safe havens draws to close

Major tech companies, including Apple and Google, have been the subject of a year-long investigation by a Senate subcommittee into their tax-savings practices, according to a new report.

The Senate Permanent Subcommittee on Investigations, which is spearheaded by Sen. Carl Levin (D-Mich.), has been conducting inquiries into Apple, Google, Microsoft, and Hewlett-Packard, among others, to determine how the companies limit their U.S. taxes, The New York Times reported yesterday, citing people who have knowledge of those proceedings.

According to the Times' sources, the subcommittee's investigation is coming to a close and it will deliver recommendations on handling corporate … Read more

Porn bigwig extradited to Germany for tax evasion

The owner of the world's largest network of porn Web sites was arrested in Belgium and extradited to Germany for alleged tax evasion, according to the Associated Press.

Fabian Thylmann -- the man behind the Manwin porn empire -- is German but lives in Belgium. Local authorities arrested him last week on a German warrant for suspicion of tax evasion. According to the Associated Press, Thylmann did not dispute the extradition.

Manwin specializes in making its Web sites like YouPorn and PornHub optimized for the Internet, which garners the sites an obscene amount of traffic. Daily, Manwin says its … Read more

The 404 1,182: Where we take 12 steps to financial freedom (podcast)

Leaked from today's 404 episode:

- Jill gives us 2012 year-end tax tips: four benefit changes.

- "Fiscal cliff" primer: Breaking down the plans.

- Alan Simpson goes "Gangnam Style."

- The Fiscal Cliff Huxtable.… Read more

Amazon to start charging sales tax in Massachusetts

Amazon buyers in Massachusetts have another 11 months to enjoy before the retail giant starts collecting sales tax on their purchases.

In a deal reached with Massachusetts regulators, Amazon will begin imposing a sales tax on all online purchases made by state residents as of November 1, 2013. The agreement was reached only after several months of negotiations, according to The Wall Street Journal.

Amazon has naturally resisted charging its shoppers state-by-state sales tax. In the past, the company has instead proposed using a national law that would regulate the collection of all online sale tax rather than leaving it … Read more

Obama tax plan hashtag hijacked by conservative think tank

A hashtag launched today by President Obama to push his tax cuts plan was quickly appropriated by a conservative think tank.

In the face of the approaching "fiscal cliff," Obama began promoting the hashtag #My2K on Twitter today as a way of encouraging discussion about his plan to preserve tax cuts for the middle class while letting expire those tax cuts on Americans households earning more than $250,000. The hashtag reflects the extra $2,000 the average middle class family of four could expect to pay if the tax cuts are allowed to expire.

The president used … Read more

Australia hits Apple with $28.5 million bill for back taxes

Apple has been told to pay an additional $28.5 million in back taxes to the Australian government, a report out of the country says.

The Sydney Morning Herald is reporting today that the Australia Tax Office actually hit Apple with the charge in April. According to the news outlet, Apple's Australian division generated $4.9 billion in revenue last year but paid only $94.7 million in taxes.

Apple's tax strategy has come under intense scrutiny over the last year as news of the company's shockingly low tax liability has been made public. During its last … Read more

France says Amazon owes $252 million in back taxes

The French government says that Amazon owes it $252 million in back taxes. The sum includes interest and penalties. Amazon was not immediately available for comment but Reuters quoted a company filing saying that Amazon would fight the claim, which it said was connected to calendar years 2006 through 2010.

Amazon's sales are run out of Luxembourg. Like many other companies operating in Europe, Amazon takes advantage of an EU provision letting it base itself in a member state with low tax rates. Separately, Andrew Cecil, the company's director of public policy confirmed the French government's tax … Read more

Google, Amazon, Starbucks face tax scrutiny in U.K.

If a firm can generate billions of dollars in sales and only pay minimal tax rates, is it fair?

Reuters reports that executives from Google, Amazon, and Starbucks will be queried today by the U.K.'s Public Accounts Committee.

The questions that will arise are whether these firms are conducting themselves fairly in light of the current economic climate, and whether the amount of tax paid in the U.K. by each company is acceptable when they make millions abroad -- or use legal maneuvering to pay as little as possible when the taxman comes knocking.

The Public Accounts … Read more