Taxes
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Google to pay $1.1 billion in France following tax probe
After a four-year investigation, Google has agreed to pay almost €1 billion ($1.10 billion) to French authorities because it did not fully declare its tax activities in the country, as reported by Reuters. The payment covers a €500 million fine and additional taxes of €465 million.
IRS reminds 10,000 taxpayers that cryptocurrency is subject to taxes
By the end of August, an estimated 10,000 taxpayers will receive letters from the IRS warning them that they may owe back taxes on unreported cryptocurrency earnings. While it might not be immediately obvious, you must include cryptocurrency earnings when you file federal taxes. As with tax evasion for traditional currency, anyone convicted of evading crypto taxes could face up to five years in prison and a fine of up to $250,000.
G20 countries agree to close tax loopholes for tech companies
Tech giants are already finding themselves on the hook for more taxes in parts of Europe, but there could now be a much more coordinated effort to have them pay up. Reuters says it has obtained a Group of 20 draft communiqué revealing an agreement to establish "common rules" for closing tax loopholes used by companies like Amazon, Apple, Facebook and Google. While the specifics haven't been nailed down, it would involve a "two-pillar" approach that both divides the rights to tax companies where products are sold (not just where they have offices) and a minimum tax rate.
Apple will pay its $571 million tax bill in France
Apple has agreed to pay 500 million euro ($571 million) in back taxes in France, according to French website L'Express. Like other European nations, including Germany and Italy, France has been trying to force tech companies, including Amazon, Google and Apple, to pay what it feels are their fair share of taxes.
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This is your annual reminder: It's tax time (assuming things reach normality) so don't forget to do your taxes. One of the most convenient and affordable methods of filing is using an online service like TurboTax. By adding your information, answering some general questions and following prompts, it's easier than ever to get this task completed. Those with more complicated returns or mild paranoia about filing through an algorithmic interface can take advantage of the TurboTax Live service. It connects you to a bonafide tax expert in-person (remotely of course) to help you over any humps and settle your nerves. You can even get started on a mobile device and finish on a PC if you'd like. This week, TurboTax has provided us with an Apple iPad (9.7-inch) to help one lucky reader get the process started at home or on the go. It's also included a code for the TurboTax Live service, so you can get human affirmation and professional suggestions when filing. All you need to do is head to the Rafflecopter widget below for up to five chances at winning this timely and immensely useful prize package. Good luck! Winner: Congratulations to Steve O. of Mauston, WI!
Austria plans its own tax for tech giants like Apple and Google
France isn't the only European country moving forward with plans to tax international tech giants. Austrian Chancellor Sebastian Kurz has announced that it will introduce its own tax on Apple, Facebook, Google and other companies allegedly dodging their fair share. Most details aren't available at this stage, but you'll get a basic outline in early January. It would take effect as part of broader tax reforms in 2020.
Sprint will pay New York $330 million over unpaid taxes
Sprint is about to write New York state a very, very large check. The carrier has agreed to pay New York $330 million in a settlement over claims it avoided collecting certain local and state taxes on cellular plans between 2005 and 2014. It's the largest ever false claims recovery by a single state, the Attorney General's office said. Allegedly, Sprint willfully misinterpreted a 2002 law to skip collecting a key sales tax based on the nature of its plans, leaving New York $100 million short.
Ohio is the first state to accept bitcoin for paying business taxes
There's a lot of legal uncertainty in the US surrounding cryptocurrency, but Ohio is pressing forward. As of this week, it'll be the first state to accept bitcoin for paying tax bills. The Wall Street Journal notes this will be limited to businesses purposes and isn't going directly into Ohio's coffers (an Atlanta firm, BitPay, converts the virtual cash to dollars first). However, it could still be much more convenient for shops that take bitcoin and would rather not exchange the format just to cover their sales tax payments.
UK wants tech giants to pay two percent tax on digital revenues
The British government announced a new "digital services" tax that would take two percent of revenues generated by tech giants, according to Sky News. The tax would skim cash off of what the companies make from services like online advertising and streaming content. The government believes such a tax could raise more than more than £400 million ($512 million) each year.
The Senate is considering extending EV tax credits
As US senate majority leader Mitch McConnell debates making cuts to social security and medicare, Senator Dean Heller (R) of Nevada is hoping to keep electric car sales zipping forward with a new bill that would extend tax credits until 2022.
Nevada sues Tesla over unpaid taxes
Tesla's recent legal woes aren't over with Elon Musk's SEC settlement. Nevada has sued Tesla for failing to pay $655,000 in taxes to the state's Unemployment Commission Fund. The electric car maker reportedly underpaid for both the first and second quarters of 2018, when it respectively doled out $68 million and $55 million in taxable wages to its employees. Don't expect a drawn-out legal battle, however, as Tesla appears ready to make amends.
Apple pays off its $15.4 billion Irish tax bill
The EU is to drop its litigation against Apple over its cosy tax relationship with Ireland now that the iPhone-maker has paid back 13.2 billion Euros ($15.4 billion) in back taxes, plus interest of 1.2 billion Euros ($1.4 billion). That sum is going in an escrow holding account pending Dublin and Apple's appeal against the ruling.
South Korea wants to tax global companies like Apple and Google
It's getting harder for global companies like Amazon, Apple and Google to avoid paying tax around the world as more countries move to change their permissive corporate tax laws. Now, according to a report in the Korea Times, the South Korean government is looking at ways to collect taxes from foreign companies in the wake of domestic complaints about the practice. The Ministry of Economy and Finance created a taskforce with the Organization for Economic Cooperation and Development to start talking about newer tax policies that focus on global tech firms.
Cupertino delays per-employee business tax for Apple and others
This week, Cupertino's city council voted to delay a measure that would put an employee "head tax" on local businesses before the population for a vote. The Silicon Valley city is, of course, home to Apple, which opposed the measure.
Amazon puts Seattle expansion on pause over tax proposal
Amazon is extremely unhappy over a Seattle tax proposal that would set it back between $20 to $30 million a year that it halted its major expansion plans in its home city. According to The New York Times, the e-commerce giant has put the construction planning of a building it was going to build downtown later this year on pause. It's also reconsidering its plans to occupy a building that's already being built -- both of those decisions jeopardize 7,000 jobs in Seattle.
IRS' direct online payment system goes down on tax day (update: resolved)
We hope you weren't relying too heavily on internet payments to file your taxes on time. The Internal Revenue Service's Direct Pay system failed (and is still unavailable as we write this) on April 17th -- you know, the last day before the tax filing deadline. You can still pay online with a credit or debit card, but that entails a transaction fee. Otherwise, you're looking at old-school checks.
Recommended Reading: Facebook's influence on Instagram
Instagram looks like Facebook's best hope Sarah Frier, Bloomberg Businessweek With all the attention on Mark Zuckerberg's visit to DC this week, it can be easy to lose sight of an important detail: Facebook also owns Instagram. Of course, this means it also has access to the photo-sharing app's massive user base. Bloomberg Businessweek has a detailed look at the relationship between the two companies as Instagram approaches 1 billion total users.
The best tax software
By Mark Smirniotis and Kevin Purdy This post was done in partnership with Wirecutter. When readers choose to buy Wirecutter's independently chosen editorial picks, it may earn affiliate commissions that support its work. Read the full article here. We tried five online tax-preparation services and prepared returns for three fictional filers with a variety of incomes, living situations, states, and deductions. With over 80 hours of research and testing over the past five years, we continue to recommend TurboTax as the best tax software for anyone who needs guidance and a confidence boost to file their 2017 taxes on their own.
EU details its taxes on tech companies' revenue
The European Union has vowed to counter tech companies' tax maneuvers by targeting their revenue, and it's now clearer just what that will involve. In an interview with Le Journal du Dimanche, French Finance Minister Bruno Le Maire said the EU would unveil plans to tax tech firms' revenue at a rate between "2 percent and 6 percent," most likely skewing closer to 2 percent. That may not seem like much, but Le Maire portrayed it as a "starting point." It's better to get a policy you can implement quickly than deal with "interminable negotiations," he said, adding that it can be improved later.
India wants to collect taxes from its cryptocurrency investors
India's income tax department has sent notices to tens of thousands of people dealing in cryptocurrency, after learning that $3.5 billion worth of transactions have been conducted over a 17-month period. The move comes as India's finance ministry grapples with regulations for virtual currencies, which are attracting around 200,000 users and raking in 20 billion Indian rupees ($315 million) worth of trade per month, reports Reuters.
