Revised (Sept 16) draft pillar one and two digital tax blueprints now available

By Julie Martin, Editor, MNE Tax

The international tax community needs to again thank McGill Professor Allison Christians for getting ahold of leaked copies of the latest versions of the pillar one and pillar two digital tax blueprints and publishing them on her website.

These drafts are being considered by the OECD-led “Inclusive Framework on BEPS,” a coalition of almost 140 counties that are trying to reach an agreement on updated tax rules that more appropriately tax digital firms.

The drafts, dated September 16, replace pillar one and pillar two drafts dated August 3, also published by Christians on her website.

#taxtwitter once again Pillar 1 & 2 blueprint drafts are making the rounds so I hPillar+1+Blueprint+Septave posted a set here. Thanks to those who sent copies. https://t.co/1WEHF9SBct

— Allison Christians (@profchristians) September 23, 2020

The pillar one and pillar two blueprints propose significant modifications to the international tax system, granting greater taxing rights to countries where the customers of a multinational group reside (pillar one) and adding a minimum tax on multinational group profits (pillar two).

The drafts will be considered the next Inclusive Framework meeting, to be held October 8–9, at which time it is expected that the final blueprints will be made public. G20 finance ministers will then consider the pillar one and pillar two proposals at their October 15–16 meetings. The proposal will then be considered by G20 leaders at their November 21–22 meeting. The goal is to reach a global agreement on an updated international tax system by year-end.

Christians, who is H. Heward Stikeman Chair in Tax Law at McGill, did not reveal the source of the leaked documents.

MNE Tax is interested in publishing expert commentary on how these drafts differ from the August 3 versions or on other aspects of the proposals. Please share your thoughts in the comment section below or send us a note to discuss the potential publication of an article at [email protected].

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Julie Martin

Founder & Editor at MNE Tax

Julie Martin is the founder of MNE Tax. She edits the publication and regularly contributes articles on new developments in cross-border business taxation.

Julie has worked as a tax journalist and editor for more than 13 years. Prior to that, she worked as an in-house tax attorney in New York. She also holds an LLM in taxation from New York University School of Law.

Julie can be reached at [email protected].

@mnetax

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Julie can be reached at [email protected].