French Digital Tax Faces Practical Hurdles, Court Challenge (1)

The French plan to hit big digital companies with a national tax starting Jan. 1, rather than wait for an EU measure, looks set for practical and legal hurdles and could face court challenges, tax practitioners warn.

Finance Minister Bruno Le Maire, appearing on TV network BFM Dec. 19—two days after announcing his digital tax plan—said the 3 percent tax will target internet companies with sales of more than 750 million euros ($855 million), much like the European Union’s proposal. And companies within its scope will include “digital platforms,” he said. The tax will apply to ...