John Warner, shareholder in the firm's Tax section, comments on possible taxation issues with the EU's proposal of a digital services tax in Bloomberg BNA's article "Europe's Digital Tax Fangs Would Bite More Than Google, Facebook."
“You could theoretically turn a profitable company into a loss company” if its margin is under 3 percent, said John Warner. ... “A 3 percent tax on gross may be a lot higher than a 21 percent tax on net, depending on what your margin is,” Warner said.
“I think the bigger risk to the international tax order is that these issues won’t be resolved,” Warner said. That could start to unravel the international progress on tax harmonization made over the last 50 years, “and that’s a bit of apocalyptic territory,” he added.