Paris, 16th December 2020—Earlier this week, we released business comments to the OECD/G20 Inclusive Framework consultation on blueprints addressing profit allocation—also known as Pillar One—and a minimum tax—known as Pillar Two.
Our comments underline the importance for any guidance to be firmly rooted in widely accepted tax principles, with clarity, consistent implementation and the development of early tax certainty processes to prevent and resolve related disputes. This objective will be essential to achieve long term sustainability, of critical importance as we head towards recovery from the effects of Covid-19 on our economies.
Our submission also highlights divergence between the OECD/G20 Blueprints and our Business Principles for Addressing the Tax Challenges of the Digitalizing Economy, outlining concrete and constructive suggestions to close those gaps.
“We remain committed to the OECD process, and we will be relentless in our defense of multilateralism,” stated Will Morris, Chair of the Business at OECD Tax Committee. “We hope that despite the broad ambitions of the OECD/G20 project, due consideration may be given to reaching a more limited yet realistic agreement by June 2021, coupled with a binding undertaking to engage in a more fundamental medium to long term discussion.”
Unilateral measures by governments seeking to deal with the tax challenges of digitalization are causing uncertainty and investment caution. Our recommendations call for all participating countries to remove unilateral measures with a commitment to forego future measures at odds with a multilateral approach to provide a new system of taxing rights.
For further information, please contact:
Business at OECD
Ali Karami-Ruiz, Senior Director, Strategic Engagement and Communications
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.download (pdf)