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France Proposes 'Google Tax' To Protect Cultural Heritage,
by Ulrika Lomas, Tax-News.com, Brussels
Monday, January 11, 2010
A report presented recently to the French Culture Ministry has proposed a series
of measures designed to improve the legitimate supply of cultural
services provided over the Internet and their financing, including most notably the introduction
of a new tax to be levied on the online advertising revenue derived by Internet
giants such as Google.
The Culture Minister Frédéric Mitterrand commissioned the report
into “creation and internet” in a bid to extend the set of sanctions
already contained in the country’s 'Hadopi' law, which is cracking down on Internet piracy.
In order to finance the proposals, estimated at around EUR50m in 2010, and
between EUR35m and EUR40m a year in 2011 and 2012, the report advocates the
introduction of a levy imposed on online advertising revenue.
Dubbed the “Google tax” by one of the main authors of the report,
Jacques Toubon, himself a former French Culture Minister, the levy is designed
to support creative industries and online press sites. A threshold level for
the tax would ensure that the levy only affects large companies such as Google,
Microsoft, AOL, Yahoo, and Facebook.
France is determined to defend its cultural heritage and to crack down on repeat
illegal downloaders. The government’s highly controversial 'three strikes'
anti-internet piracy – or Hadopi – law went into effect on January
1.
Under the new law, those found to have made available copyrighted material or
downloaded copyrighted material from file sharing websites receive two warnings
before being fined or – ultimately – disconnected.
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