Ten dead after bridge collapses in India's Gujarat, NDTV reports
At least nine people have died after a bridge collapsed over a river in the western Indian state of Gujarat on Wednesday, according to local police qu...
In a move with potentially far-reaching implications for the tech industry in Europe, Italian tax authorities have extended their investigation to Elon Musk’s social network X, seeking €12.5 million in value-added tax (VAT) for the period 2016 to 2022, Reuters has reported.
According to sources with direct knowledge of the matter, the probe runs in parallel with a similar inquiry into Meta, highlighting a broader effort by Italy to scrutinize how social networks generate revenue. Italian tax officials contend that user registrations on platforms like X, Facebook, and Instagram could be viewed as taxable transactions, since they involve the exchange of a membership account in return for a user's personal data.
Although the €12.5 million claim represents a small fraction of X’s revenue—reported at $3.4 billion in 2023—the case is seen as a test of a new tax interpretation that could reshape the business model of digital service providers across the European Union, where VAT is harmonized among 27 member states.
Milan’s Guardia di Finanza (GDF) concluded its audit last April, finding that X had not paid the required VAT on its operations in Italy. In January, Italy’s Revenue Agency issued a formal list of observations regarding the 2016 tax year—a deadline that is set to expire this year. Following the audit, Milan prosecutors launched a criminal investigation into X, mirroring similar actions taken against Meta, which had completed its initial stage last December.
The tax authorities have given both X and Meta until late March or early April to respond to these observations. At that point, the companies must either agree to settle by paying the claimed amount or face a full judicial tax dispute. Should the Revenue Agency opt for the latter, the process could extend for an average of about 10 years, with potential financial liabilities increasing over time if the companies lose the case.
The probe comes amid heightened sensitivity to digital service taxes across Europe, with U.S. President Donald Trump having recently threatened tariffs on imports from countries that impose such levies on U.S. tech firms. This development adds another layer of complexity, especially as Musk maintains a strong relationship with Italian Prime Minister Giorgia Meloni and is keen to expand his Starlink communications business in the country.
In a related move, Italy extended its domestic digital services tax to small and medium-sized enterprises in November, a step taken to address U.S. objections that the tax was discriminatory.
X did not immediately respond to requests for comment on the matter. Sources noted that both X and Meta have since ceased direct interactions with Italian authorities, as the cases now touch upon a broader tax framework that could alter how digital services are taxed across the EU.
As the Revenue Agency finalizes its approach, industry observers are closely watching the case, which could set a precedent affecting the entire tech sector in Europe.
Australian researchers have pioneered a low-cost and scalable plasma-based method to produce ammonia gas directly from air, offering a green alternative to the traditional fossil fuel-dependent Haber-Bosch process.
A deadly mass shooting early on Monday (7 July) in Philadelphia's Grays Ferry neighbourhood left three men dead and nine others wounded, including teenagers, as more than 100 shots were fired.
European Commission President Ursula von der Leyen urged stronger sanctions and defence support for Ukraine as the EU's 18th sanctions package against Russia nears approval.
Archaeologists have uncovered a 3,500-year-old city in northern Peru that likely served as a key trade hub connecting ancient coastal, Andean, and Amazonian cultures.
The United States has rescinded licensing restrictions on ethane exports to China, allowing shipments to resume after a temporary halt and signalling progress in efforts to ease recent trade tensions.
An integrated mountain agropastoral system in Tajikistan has become the first Central Asian addition to the Globally Important Agricultural Heritage Systems, - the Food and Agriculture Organization of the United Nations (FAO) announced.
President Donald Trump’s postponement of a sweeping tariff deadline to 1 August has renewed hopes for trade deals with key partners, but left smaller exporters and businesses grappling with uncertainty.
Former UK Prime Minister Rishi Sunak is returning to Goldman Sachs as a senior adviser, the investment bank said on Tuesday.
Russia's budget deficit reached 3.69 trillion roubles ($46.89 billion), or 1.7% of gross domestic product (GDP), in the first half of the year, the same as expected for the full year, the finance ministry said.
Norway has listed two Russian fishing companies, Norebo JSC and Murman Seafood, in line with European Union sanctions adopted on 20th May. The Norwegian government stated that the decision supports the country’s broader security policy objectives.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment