The latest meeting of ECOFIN took place in Estonia where the corporation tax challenges presented by the digital economy were discussed. In a move to tax profits from such businesses in a “fair” manner, proposals to introduce a tax on the turnover, rather than profits of internet based companies were tabled and countries were asked for their thoughts.

Ten EU countries, including France, Germany, Italy and Spain are reported to have backed the proposals and want the plans introduced by mid-2018. Several EU countries including Ireland have expressed reservations about the plans.

The plans were raised in light of the perceived gap in international tax rules where profits arising in businesses in the digital economy are escaping tax.