Vodafone Ireland raised concerns that the telecom sector could be unfairly affected by the move to a global tax rate of 15pc in a letter to Finance Minister Paschal Donohoe.
t also warned that Europe’s digital ambitions could be thwarted as a result, causing Europe to collapse
behind the US and China in 5G deployment.
In a letter published under the Freedom of Information Act, Liam O’Brien, the company’s director of strategy and foreign affairs, raised concerns that “the traditional telecommunications sector will now suffer disproportionate and unfair tax burdens due to the level of sector-specific taxation that already exist”.
He said the telecom sector could be affected by several rounds of global tax reform.
“This creates a new playing field and does great damage to Europe’s digital ambitions.
“It will result in the European telecommunications sector being at a tax disadvantage for big tech and thus an obstacle to Digital Decade ambitions regarding Europe’s Digital sovereignty. ”
O’Brien says 5G will revolutionize the industry and play a role in driving the green agenda.
But he said unfair treatment of the sector could undermine Europe’s goal of closing the investment gap in 5G to ensure it doesn’t “fall further behind the US and China”. .
“If Europe lags further behind the US and China, 5G industrial innovations will take place elsewhere, and Europe will be a net importer of technological innovation and exports,” wrote O’Brien. net in industrial value,” wrote O’Brien.
He outlined five principles related to the telecommunications sector that he suggested should be incorporated when the new tax agreement is implemented.
O’Brien’s proposal in an addendum to the letter to Donohoe included the principle that the definition of profit attributable to a country should take into account capital investments in that country.
In a related email, written last September, O’Brien told Donohoe that while Vodafone supports the need for reform, there are issues of concern that he might consider raising at the meeting EU ministers.
https://www.independent.ie/business/irish/vodafone-flags-new-global-tax-concerns-41437021.html Vodafone marks new global tax concerns