New blow to OECD negotiations as US walks out of the table
The US has proposed a halt from the OECD negotiations on international tax reforms, and withdrawn from talks with the EU on taxing the digital economy. The move comes soon after the US declared its intention to investigate several jurisdictions’ unilateral digital tax regimes.
This major setback to the negotiations puts in danger the negotiating partners’ aspirations to reach an agreement this year, although the OECD stated in response to the US move that work must continue with the view of a 2020 agreement.
French finance minister called the US move a “provocation”, whilst the EU reacted by re-iterating, through Commissioner Gentiloni, its intention to move ahead with unilateral digital tax reforms if OECD negotiations fail to deliver. Executive Vice-President Vestager, for her part, insisted that the EU would “really, really prefer a global consensus” but that if this is not possible, Europe will proceed alone “if we need to”.
ICRICT publishes report on COVID recovery and taxation
The Independent Commission for the reform of International Corporate Taxation (ICRICT) has published a new report with tax recommendations for post-COVID recovery.
The recommendations include higher tax rates in “oligopolised sectors”, a global minimum effective tax rate of 25% and public country by country reporting (CBCR). Read more