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Europe to continue with digital services tax plans after US pulls out of talks: Report

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European leaders doubled down on their plans to introduce digital services taxes after the US suspended talks with European countries on evolving a new global tax framework for technology companies and warned them of retaliatory measures on June 17. The Financial Times reported both these developments. Steve Mnuchin, the American Treasury Secretary had reportedly sent a June 12 dated letter to four European finance ministers — UK Chancellor of the Exchequer Rishi Sunak, French Economy Minister Bruno Le Maire, Italian Finance Minister Roberto Gualtieri, and the finance minister of Spain — telling them that the US could not agree to OECD-proposed changes to global taxation law that would affect American technology companies even on an interim basis. The US wants to resume talks later this year, as per the letter. In response, Le Maire reportedly called the suspension of these…

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