Threat of Legal Challenges Hangs Over French Digital Tax

France’s final approval of a 3% digital tax may open the door to a host of legal challenges by companies, on top of the trade investigation by the U.S.

The tax bill, approved by the French parliament July 11, would be one of the first digital taxes collected in Europe this year, making it a prime target for a showdown in European courts.

Challenges on the grounds that the tax violates French or EU law, or bilateral tax treaties, could result in the tax being stalled or overturned, although a final outcome could be years away.

Expect a lot ...