eBay Chief Executive Condemns European Tax 'Patchwork'

by Ulrika Lomas, Tax-News.com, Brussels

09 February 2006

Speaking to reporters this week ahead of a meeting with the European Union's Taxation Commissioner, Lazlo Kovacs, eBay boss, Meg Whitman called for European tax harmonisation, and ruled out any large acquisitions in 2006, suggesting that the firm needs time to consolidate.

Ms Whitman argued that the European Union's "patchwork of regulation and taxes" makes it difficult for eBay users, the majority of whom are indudivuals and small businesses, to sell their products in other member states.

"If you're a big company, you can cope with all the regulation, " she suggested, according to an Associated Press report, adding that: "Harmonization can only help."

With regard to the company's future plans, the eBay Chief Executive announced, according to Reuters, that:

"My preference (in 2006) would be to consolidate our position, exploit the synergies, and then think about what we might do later on."

According to Ms Whitman, Europe is one of the auction site's fastest growing markets, with around 170,000 people earning a living by selling on eBay, and approximately 50 million browsing and purchasing from the site.

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