The OECD today released more than 200 comment letters received in response to a public consultation which, while said to be focused on “the tax challenges of the digitization of the economy,” has morphed into a more general discussion of nations’ right to tax multinational group profits in all sectors.
Commentators include many of the world’s largest multinationals, business associations, Big Four accounting firms, academics, and NGOs focused on tax justice.
The large number of responses reflects the significance of the changes under consideration by the international tax community and the dollar amounts involved.
Under consideration are proposals for developed countries to adopt a minimum tax on multinational firm profits in a coordinated way and proposals that would allocate more taxing rights to market jurisdiction or jurisdictions where the users of digital services reside.
The measures are aimed at stopping the international tax system from becoming unstable. Countries have begun to adopt unilateral measures to counter multinationals’ continued ability avoid tax, particularly in the digital sphere creating uncertainty and the potential for double taxation.
The OECD will be holding a public hearing on the consultation at OECD headquarters in Paris on March 13-14 which will be broadcast live. The agenda for the public consultation is now available.
You can download the comment letters at this link: Comments (Zip file, 82mb).
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