The only consensus we currently seem to have is that there is no consensus. The Organisation for Economic Co-operation and Development (OECD) and EU have issued substantive papers on the subject, but these also highlight the starkly differing views and policy objectives of the various participating countries. A number of countries have already started the process of introducing their own unilateral measures, with double (or worse) taxation of impacted revenues a very real possibility.
But, with the OECD taking the lead on the topic and aiming for a long-term consensus position by mid 2021, we could be approaching a turning point.
The outcome of the multilateral discussions will set the tax environment for decades; the digitalisation of the economy has set the stage for wide-ranging tax reforms that go well beyond the original BEPS project, and which could affect not only businesses but also consumers and national economies.
Those businesses that are up to speed and prepare early will be best-placed to respond to these challenging developments.
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