Glass Half Empty or Half Full? OECD May Reach Consensus on Digital Taxation in 2021Oct-12-2020
On 12 October 2020, the Secretary-General of the Organisation for Economic Co-operation and Development (OECD) and the Director of the OECD Centre for Tax Policy and Administration (CTPA) welcomed substantial progress with respect to the status of negotiations towards reaching a multinational, consensus-based solution to the tax challenges arising from the digitalization of the economy.
The presentation was accompanied by two blueprint documents including a great amount of technical details and analysis of the OECD Pillar One and Pillar Two proposals, an impact assessment analysis report and a public consultation document seeking public input on the revised blueprint documents.
Both the Secretary-General and the Director of the CTPA appeared optimistic that a broad consensus-based solution may be reached in 2021, warning that the alternative of a non-agreement might lead to a multiplication of unilateral measures, trade wars among jurisdictions and a potential set-back for the global economy in light, also, of the ongoing COVID-19 pandemic and its socio-economic impact.