France pushes back against US over digital tax probe

France slammed the U.S. over its probe into digital taxes that are being considered by a number of countries, saying it contradicts Washington’s call for unity among leading economies.

“There is a real contradiction between the U.S. demanding unity within the Group of Seven—which we support—and the possiblity of new trade sanctions,” French Finance Minister Bruno Le Maire said after a G-7 telephone conference Wednesday.

The French and U.S. government agreed a truce earlier this year in a dispute over France’s digital services tax, according to which Washington is holding back on sanctions and Paris is suspending the collection of its levy. France will resume collecting the tax at the end of the year unless there is an agreement in talks at the OECD on new global tax rules.

On Tuesday, the Trump administration started investigations into digital services taxes considered by several trading partners from the European Union to India. A similar investigation into France’s tax led to the threat of tariffs.

“We won’t give up on anything on digital tax,” Le Maire said. “I’ve called on the states of the G-7 to accelerate work at the OECD to get an international solution by the end of 2020.”