France: G7 member states reach agreement to tax digital activity

M/S French Minister of Economy and Finance Bruno Le Maire on stage; Governor of the Bank of France Francois Villeroy de Galhau entering press conference, Chantilly
SOT, Bruno Le Maire, French Minister of Economy and Finance (French): "We first of all had a long discussion on the question of crypto-currency and in particular on the recent announcements made by Facebook on Libra. All G7 members expressed their strong worry over this Libra project.
M/S Le Maire and Villeroy de Galhau during presser *CUTAWAY*
SOT, Bruno Le Maire, French Minister of Economy and Finance (French): "We cannot accept that private firms implement their own currency without any democratic control. We refuse the emergence of private states that would have the same privileges as states, without the checks and obligations that go with it."
M/S Le Maire and Villeroy de Galhau during presser *CUTAWAY*
SOT, Bruno Le Maire, French Minister of Economy and Finance (French): "The G7 started off in a tense context, especially with the US' decision to launch the 301 section into France, due to the adoption of the tax on digital giants. I think we returned, on the occasion of this G7, to a coordinated, multilateral and more constructive approach. We conclude, today in Chantilly, an ambitious agreement that allows us to move forward about the digital tax and on minimal taxation."
M/S Journalist asking question *CUTAWAY*
SOT, Bruno Le Maire, French Minister of Economy and Finance (French): "This agreement of G7 member states covers three elements. The first one is taking into account the fiscal challenges that crypto-currency offers with an agreement, for the first time with all G7 members, to tax activities without a physical presence, in particular digital activities. This is the first time that members of the G7 take into account the fact that there are firms that make profit without any physical presence or with a very limited physical presence, and that these activities must be taxed."
M/S Journalist asking question *CUTAWAY*
SOT, Bruno Le Maire, French Minister of Economy and Finance (French): "The second element is that, for the first time as well, G7 member states agreed on the implementation of a minimum corporate tax. They have thus reminded their determination over bringing an end to aggressive fiscal competition between states, ending tax dumping, ending the aggressive optimisation of certain companies that use all kinds of methods to avoid being taxed."
M/S Le Maire and Villeroy de Galhau during presser *CUTAWAY*
SOT, Bruno Le Maire, French Minister of Economy and Finance (English): "We agree that there is a necessity to have a fair taxation of the companies that do not have a physical presence in a state. That's the first point on which we have an agreement."
C/U Journalist asking question *CUTAWAY*
SOT, Bruno Le Maire, French Minister of Economy and Finance (English): "Before this G7, there was no agreement among the G7 countries and also among the G20 countries about the necessity of taxing private companies without any physical presence, or with a limited physical presence. There is an agreement on that principle, that's new. Second, there was no agreement on the question of the profit reallocation. How do we reallocate the profit? There is today, after this G7, an agreement on the profit reallocation, the so-called Nexus. Third, there was no agreement on the necessity to take into account the highly digitalised business models."
M/S Le Maire and Villeroy de Galhau leaving stage
SCRIPT
An agreement between G7 member states to "tax activities without physical presence" was welcomed by French Minister of Economy and Finance Bruno Le Maire, during a press conference in Chantilly on Thursday.
"This is the first time that members of the G7 take into account the fact that there are firms that make profit without any physical presence or with a very limited physical presence, and that these activities must be taxed," said Bruno Le Maire.
The French Finance Minister also touched on Facebook's crypto 'coin' Libra and said that G7 countries expressed a "strong worry" over this project. He then added: "We cannot accept that private firms implement their own currency without any democratic control. We refuse the emergence of private states that would have the same privileges as states, without the checks and obligations that go with it."
The press conference took place after a meeting of finance ministers and central bank governors of the G7 countries.