Paris, 27 May 2019 – A strong delegation of global business leaders participated in the 2019 OECD Ministerial Council Meeting, stressing the need for integrated policies that will enable business to fully deliver on the potential from the digital transformation for economies and societies. This pivotal exchange platform allowed our global members and corporate leaders to convey what business needs from international collaboration to promote both economic growth and inclusion. Our high-level dialogue featured multiple interactions with Economy, Trade, Foreign Affairs, and Finance Ministers from 36 OECD countries and key non-member economies. Senior leaders including Peter Robinson, CEO and President from the US Council for International Business, Alexandre Ricard, CEO of Pernod Ricard, and Saori Dubourg, Board Member from BASF, formally addressed Ministers during the program.

 

The OECD Ministerial outcomes and adopted instruments reflected critical policy recommendations from our 2019 Business at OECD Statement to Ministers, notably the need to appropriately involve stakeholders as future policy recommendations are developed, guidance that will enable data governance based on trust, and continued support for OECD evidence and facts on tax, competition, and trade, including on tracking market distorting support measures and barriers. We commend the adoption of the OECD Artificial Intelligence principles and the creation of an OECD Observatory on AI—business involvement in this area will be critical to achieve innovation in a number of fields including health, environment, and anti-corruption.

We also convened for the 5th occasion the current G20 and Business-20 presidencies to share business recommendations to G20 leaders ahead of the Osaka Summit. The event featured the participation of the Foreign Minister of Japan Taro Kono, the president and CEO of ANA Holdings Shinya Katanozaka, and OECD leadership. Business speakers from our French and German national members MEDEF and BDI, our Argentinian observer UIA, and from Accenture also debated views with five G20 Sherpas and senior government officials. In this meeting, Business at OECD Chair Phil O’Reilly affirmed the importance of ensuring continuity and frank exchanges across presidencies to achieve tangible outcomes in G20 declarations and implementation actions. 

About Business at OECD

Established in 1962, Business at OECD stands for policies that enable businesses of all sizes to contribute to growth, economic development, and societal prosperity. Through Business at OECD, national businesses and employers’ federations representing over 7 million companies provide and receive expertise via our participation with the OECD and governments promoting competitive economies and better business. 

For more information, contact Ali Karami-Ruiz, Senior Director, Strategic Engagement and Communications

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Melbourne, 22^nd March 2019 – Over 300 international VAT/GST experts from government, international business, and academia met in Melbourne for the 5^th OECD Global Forum on VAT.  Discussions focused on learning from practical experiences and exploring how VAT/GST revenues can be safeguarded, while ensuring a global level playing field and efficient VAT/GST collection for business and tax administrations—key elements for fostering economic growth.

“To safeguard VAT/GST revenues for governments and ensure a level playing field for business, business calls for a consistent global implementation and application of the neutrality and destination principles, as recommended in the OECD International VAT/GST Guidelines. This includes efficient VAT/GST collection based on a well-functioning cooperative compliance regime, and simple, proportionate and consistently applied measures, that allow an efficient use of modern technology”, said Karl-Heinz Haydl, Business at OECD VAT/GST Chair and Business Co-Chair of the OECD VAT Technical Advisory Group (TAG).

 The Global Forum also endorsed a forthcoming OECD report on the role of digital platforms in the VAT/GST collection process. “Business at OECD welcomes this report and calls for consistent implementation by governments around the world, looking at all possible roles digital platforms can play, as highlighted in the report”, Haydl said. We welcome the development of further Implementation Guidance by the OECD for the consistent implementation of the policy options provided in this new report.

In light of digitalization and the global nature of VAT/GST, we believe global dialogue and cooperation between business, which serves an important function in VAT/GST collection, and governments under the lead of the OECD and its Global Forum on VAT, is more important than ever.

“Consultation with business to shape sound future policies and appropriate lead time for business to implement these policies in practice are key aspects to make global VAT/GST systems more consistent and futureproof”, Haydl pointed out.  “We will continue to actively support this work under the lead of the OECD´s Working Party 9 on Consumption Taxes, through the well-established OECD VAT/GST TAG process”, Haydl emphasized.

About Business at OECD

Established in 1962, Business at OECD stands for policies that enable businesses of all sizes to contribute to growth, economic development, and societal prosperity. Through Business at OECD, national businesses and employers’ federations representing over 7 million companies provide and receive expertise via our participation with the OECD and governments promoting competitive economies and better business.

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Paris, 31^st January 2019 – Business welcomes the OECD/G20 policy note Addressing the Tax Challenges of the Digitalisation of the Economy approved by the Inclusive Framework (IF) on BEPS, reaffirming commitment to a multilateral solution to addressing the tax challenges of the digitalization of the economy.

This important initiative will impact all businesses and is of critical importance to the integrity of the international tax system. We believe the OECD Inclusive Framework can reach international consensus in this area, and we are committed to engaging a diverse and effective business network in the consultative process going forward.

“Broad consensus on measures for taxation of the digitalizing economy is crucial to ensure innovation, growth, and stem instances of double taxation. In this context measures should also enable tax administrations to collect revenue needed for essential and efficient governmental functions,” states Will Morris, Chair, Business at OECD Committee on Taxation and Fiscal Policy.

On 21 January 2019 Business at OECD released 11 foundational principles for international tax measures in the digital age.

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Paris, 21st January 2019 – Business at OECD has released a list of eleven principles for designing digital tax measures.

At this crucial moment for the OECD/G20 process on Base Erosion and Profit Shifting (BEPS), which seeks to reach international consensus on measures for taxation of the digitalizing economy, Business at OECD continues to believe that rushed unilateral or regional measures could undercut these important efforts.

“It is important to reach an international consensus that meets the needs of governments and the expectations of their citizens, while promoting economic growth and job creation,” said Will Morris, Chair of the Business at OECD Committee on Taxation and Fiscal Policy.

Business at OECD particularly counsels against attempts to ring-fence the digital economy and short-term measures (such as turnover taxes) that do not meet the principles agreed in the OECD Ottawa Tax Framework.

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Paris, 14 December 2018 – Convening senior representatives from business, the OECD, and governments, Business at OECD today held its 3rd Annual Forum on Health exploring the role digital technologies and strategic partnerships play towards the success and well-being of economies and societies. Moderated by Riz Khan, the Forum featured business contributions on the potential of data for better health, planning for new technologies, and connecting people and patients with healthier choices and lifestyles through digital opportunities.
“Improving health in the 21st century can only take place with patient and consumer engagement by optimizing prevention and disease management approaches” said Nicole Denjoy, Chair of the Business at OECD Health Committee. “Digital and health technologies are critical to achieve this goal, but we still need policies that support this transformation,” she added.
Experts also examined how partnerships can help achieve balanced dietary choices and active lifestyles. “Well-structured Public-Private initiatives show how even challenging issues can be tackled through joint actions when implementation is effective, positive changes bring mutual benefits and the targeted groups are supported with measures appropriate to their needs” said Russel Mills, Business at OECD Secretary General.
Commenting on the role of international cooperation, OECD Secretary General Angel Gurria stated, “Greater co-operation between the private and public sectors on health issues will be critical to unlock the full power of digital innovation in this area. Partnerships, including at the international level, are essential to connect the brightest minds and to promote research on complex health issues, especially where upfront R&D expenditures are vast and payoffs uncertain.”

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 Paris, 3^rd December 2018 – Business at OECD (BIAC) reiterates its support at this crucial moment for the OECD/G20 process, which over the next 18-24 months seeks to reach international consensus on measures for taxation of the digitalizing economy.

We believe that rushed unilateral or regional measures could undercut the efforts of the 124 countries of the Inclusive Framework part of the OECD/G20 project on Base Erosion and Profit Shifting (BEPS).  It is important to reach a consensus that meets the needs of governments and the expectations of their citizens, while promoting economic growth and job creation.

Business at OECD particularly counsels against short-term measures, such as turnover taxes, that do not meet the principles agreed in the Ottawa Tax Framework.

We look forward to continued engagement in support of reaching a multilateral solution to these important issues.

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Paris, 14 November 2018 – 

Business at OECD strongly supports effective multilateral approaches to global challenges
The OECD, as a consensus based multilateral organisation, draws its strength from common goals and common rules. Today, effective multilateralism is more important than ever. Amid rising trade tensions, increased protectionist tendencies, and the changes associated with the digital transformation, multilateralism faces significant challenges. Business believes that the OECD has a vital role to play in ensuring the good governance of global markets. Indeed, this ongoing effort is essential for the efficiency and vitality of our economies.

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Paris, 14 September 2018 – “G20 leaders must do more to strengthen cross-border coordination and remove artificial barriers to help improve the business and financing environment for SMEs or we risk missing out on their productivity potential,” said Russel Mills, Secretary General, Business at OECD. “The fragmentation of domestic and cross border regulation, alongside access to finance and the challenges of the digital transition, remain major barriers to growth for SMEs worldwide.”

Small and medium sized businesses’ ability to participate in international markets and global value chains has not been fully developed. A new report (available here) from Business at OECD and B20 calls on G20 leaders to follow four core recommendations to this end:

 

1. Pursue balanced reforms that promote productivity, economic growth and stability. 

1. Foster interoperable global regulatory frameworks, and commit to consistent implementation through coordination and consultation, supported by independent impact assessments both pre and post implementation. 

1. Develop digital policies and strategies aimed at facilitating SME growth that eliminate cross-border differences. 

1. Maximize data access and information sharing through digital platforms for a coordinated response to global challenges: cyber security, the digitalization and the transition to a low-carbon economy.

Gianluca Riccio, Chair of the B20-Business at OECD Roundtable on SMEs and GVCs said, “OECD research shows us that SMEs, and especially new and fast-growing businesses, still face challenges in meeting their full productivity and employment potential. To tackle this issue we urge coordinated action between G20 Presidencies, supported by input from the respective B20 communities.”

The report builds on the findings of a high level seminar held at the OECD Headquarters in Paris in May 2018, as a joint initiative between Business at OECD and B20 Argentina.

 

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Paris, 4 September 2018 – As of this week, Russel Mills has joined Business at OECD as Secretary General and will lead the engagement with its global constituency of leading national business organizations, their respective member companies, and with the OECD and member governments on global governance. To this end, he will deepen Business at OECD’s strategic dialogue with the OECD Secretary General and senior government officials. Mr. Mills succeeds Bernhard Welschke who served as Secretary General from April 2013 until July 2018.

Mr. Mills brings four decades of experience in market development, technology exploitation, and global business management to his new position as Secretary General. He has also set up small businesses and worked for charities. His background will be essential to strengthen Business at OECD’s collaboration with OECD and member governments to ensure businesses can operate, trade and invest in open and fair markets thus contributing to the wealth creation that enables societies to flourish.

Commenting on his appointment, Mr. Mills stated: “business relies on progressive international organizations like the OECD to develop policy ideas and implementation processes that help us adapt to a rapidly changing world whilst ensuring long-term economic sustainability. To this end, we plan to leverage our unparalleled business network in all OECD countries and beyond and ensure our contributions to global policymaking will be impactful.”

Mr. Mills’ global, on-the-ground experience spans across the United States, the United Kingdom, the Netherlands, Belgium and Switzerland where he held global responsibilities across a wide variety of sectors, including in the chemical industry and related manufacturing sectors. Mr. Mills previously chaired the Environment and Energy Committee of Business at OECD for over 5 years, representing the organization in several Ministerial meetings. He is a UK national, and speaks English and conversational French and German. He is a physics graduate of Oxford University.

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Patchwork financial regulation is a $780 billion drag on the economy

New York/Paris, April 11 2018 – Fragmentation in global financial regulation costs more than USD $780 billion annually, according to a survey released today by IFAC (International Federation of Accountants) and Business at OECD (BIAC).

The survey, Regulatory Divergence: Costs, Risks, Impacts: An International Financial Sector Study, examines the cost of regulatory divergence by taking the pulse of more than 250 regulatory and compliance leaders from major global financial institutions. The results quantify the massive impact of fragmented regulation: material economic costs, financial system risk, and barriers to economic growth.

Regulatory divergence, which refers to inconsistencies in regulation between different jurisdictions, costs financial institutions between 5 to 10% of annual revenue turnover, according to the survey findings. Over half (51%) of respondents said resources have been directed away from risk management due to the costs associated with diverging regulation.

The $780 billion price tag is conservatively inferred by the findings, with smaller institutions (annual turnover less than $100 million) twice as likely as their larger counterparts to experience very material costs.

“There is clear evidence that reforms implemented since the last financial crisis have resulted in fragmentation that consumes valuable resources, including those that could otherwise be focused on de-escalating the risk of the next crisis,” said Fayezul Choudhury, CEO of IFAC. “In particular, the competitive disadvantage for small and medium sized institutions should serve as a wakeup call for policy makers.”

The costs of regulatory divergence are felt most strongly in the capital markets sector, with 92% of respondents indicating material or very material costs, followed by banking (76%) and professional services (66%).

“The impact of fragmented regulation on growth is troubling, as non-tariff barriers to trade and investment stop businesses from expanding internationally, which undermines job and wealth creation,” said Bernhard Welschke, Business at OECD (BIAC) Secretary General.

“The survey highlights the need for increased international regulatory co-operation to reduce the regulatory divergences which are costly on business. Pioneering OECD work in this area helps countries improve the way they cooperate on regulatory matters across borders to achieve their public policy objectives and reduce unnecessary costs for business and citizens,” said Marcos Bonturi, Organisation for Economic Co-Operation and Development (OECD)’s Director for Public Governance.

Business at OECD (BIAC) and IFAC recommend enhancing international cooperation among regulators, increasing overall alignment in regulation, and ensuring transparency in international rule-setting to mend the fractures caused by regulatory fragmentation.

 

Media Contacts:

Genna De Rose
IFAC Communications
IFAC
geenaderose@ifac.org
+1-646-277-9390

Ali Karami-Ruiz
Director, Policy, Communications, and International Affairs
Business at OECD (BIAC)
karamiruiz@biac.org
+33 (0)142 300 960

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