Chapter 3: Taxing Multinational Companies

Chapter 3 discusses the development of the corporate tax system and presents various reform options. Globalization and technological change seem to make taxation, particularly of large, multinational companies, increasingly difficult. Companies with digital business models often have little or no physical presence in Europe despite generating large revenues. There is a general perception that multinational companies find it easier than traditional companies to avoid taxes. To counteract such developments, France has introduced a ‘digital services tax’ to collect part of the revenues that would otherwise remain untaxed.