Analysis

National Digital Taxes Could Face State Aid Challenge In EU

By Todd Buell (February 5, 2019, 2:43 PM EST) -- Attempts to tax large tech companies in Europe could face another challenge in the form of scrutiny under the continent's state aid rules as individual countries move forward with their own tax measures.

European and French flags flapping at the Elysee Palace in Paris. (AP) After the European Commission failed to agree on its proposal for a 3 percent tax on large companies' digital revenue, France, the U.K., Spain, Italy and Austria have moved ahead with tax plans of their own. Lawyers told Law360 those digital taxes may be vulnerable to court challenges, though victory is far from assured.

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