How should we tax Tech Monopolies?
High Tech monopolies make money "online"; so, the territorial criteria used to determine which Tax system should be applied on an enterprise is tricky to define… However, most of those entities such as GAFA (Google Apple Facebook Amazone) may be taxed based on advertising incomes they generate in each country. A similar Tax regulation was implemented recently in France… The principle maybe summerized as follows: Facebook for instance profiles each internet surfer to determine what are his hobbies and favorite themes. Then, they suggest unsolicited publicities bought before by advertisers to them. So, you understand now the business model set up by Facebook developers: they "sold" your personal data to advertisers to make money… It's free for you because you pay no fees to utilize their social network, but; your personal data is their raw material, and you give willingly those ones to them for free!!!
When it comes to tax those Facebook activities for instance, specific scripts can be designed by Tax Authorities developers to track the number of advertisings each Facebook surfer received under his screen name on a monthly basis. Then, a process may be put in place to trace and escalate all online transactions associated to those publicities which lead to online purchases. Finally, those purchases consumed in the territory may be charged with tax such as VAT on Facebook if purchases invoices associated to those goods don't include that tax for instance…
Another way to simplify this process would consist to tax advertising gateways sold by Facebook to advertisers by charging them with the normal Net Income rate applicable in the country…
Amazone and Apple may be taxed based on their sales…