French DST Encouraged Others to Pursue ‘Similar Discriminatory Taxes,’ Says Tech Lawyer 

“Financial impacts” of the French digital services tax and DST “implications for the US tax base” worry the tech industry, posted international tax law expert Gary Sprague with Baker McKenzie in docket USTR-2019-0009. Sprague asked to testify for Amazon, Facebook, Google, Microsoft and others at the hearing Tuesday on the Office of the U.S. Trade Representative’s December finding that France’s DST discriminates against U.S. companies (see 1912030002). USTR is proposing to slap up to 100 percent retaliatory tariffs on 63 subheadings of French imports worth about $2.4 billion in 2018 customs value. Tech “strongly" backs the work of the Organisation for Economic Co-operation and Development to draft a “consensus solution” that would obviate the need for the French DST and similar other tax remedies that can harm U.S. interests, said Sprague. France's tax has “encouraged several other countries to pursue similar discriminatory taxes,” said Sprague, a member of the OECD technical advisory group studying the treatment of e-commerce revenue in tax treaties. The vast majority of the hundreds who have requested to testify are wine importers opposing the proposed tariffs on French goods. Written comments on USTR's proposed tariffs are due Monday. Post-hearing rebuttals are due Jan. 14.