The High Level Expert Group on Taxation of the Digital Economy will focus on identifying the key problems with digital taxation from an EU perspective and presenting a range of possible solutions. The Commission will then consider whether legislation is needed.
The move follows several national investigations, parliamentary hearings and legislative changes aimed at closing tax loopholes for companies operating largely online and through multiple foreign subsidiaries, such as Apple, Google and Amazon. Semeta said that taxation should not be an obstacle to digital development, but "we must also ensure that the digital sector plays fair and pays fair".
The expert group will be comprised of up to seven members, who will be internationally renowned experts on the digital economy and on taxation. It will be chaired by a person of political profile with relevant background on such issues. It's expected to start work before the end of the year and report back to the Commission in the first half of 2014.
