BIAC weighs in on digital tax debate

The OECD’s business forum (BIAC) today released “Business Principles for Addressing the Tax Challenges of the Digitalizing Economy,” setting out 11 principles that the group believes should be taken into account as nations work to update the international tax rules to account for the modern economy.

The paper comes as the OECD is working to reach consensus among countries on how to appropriately tax the digital economy and is preparing a final report on these issues, due 2020.

According to BIAC, such international tax reforms should:

1. Be based on long-standing and well-founded underlying principles of international taxation.
2. Not ring-fence the digital economy.
3. Respect the Ottawa Taxation Framework principles.
4. Be grounded in the concept of value creation.
5. Reduce instances of double taxation.
6. Be introduced as a comprehensive package.
7.  Be reflected in model treaties and commentary.
8. Provide tax certainty for taxpayers and tax administrations, including strong dispute resolution mechanisms.
9. Have global agreement.
10. Minimize the administrative burden on taxpayers and tax administrations.
11.  Be developed through inclusive consultation with all businesses and other stakeholders.

You can read BIAC’s position paper here.