The Organisation for Economic Cooperation and Development (OECD) today released a public consultation document along with a request for comments on draft model rules for reporting by platform operators regarding sellers in the “sharing and gig economy.”
Read the OECD’s Draft model rules for reporting for platform operators with respect to sellers in the sharing and gig economy [PDF 1.3 MB] (43 pages)
As noted in a related OECD release, the market of online platforms facilitating the "sharing" and "gig" economies is growing rapidly and is changing many business sectors. The growth of sharing and gig economy platforms presents opportunities for tax administrations because it may bring activities previously conducted in the informal cash economy onto digital platforms, where transactions and related payments are recorded in electronic form. Yet, certain activities conducted through these platforms may not always be visible to tax administrations or self-reported by taxpayers—the gig economy reveals a shift from traditional work relations under employment contracts to the provision of services by individuals on an independent basis that is not typically subject to third-party reporting. These developments could add risks of distorting competition with traditional businesses and reducing taxable income.
Certain tax authorities have already introduced certain reporting obligations on platform operators to report; others are planning to introduce similar measures in the near future. However, given that platforms are facilitating transactions in the sharing and gig economies on a global scale, there are inherent limitations to the effectiveness of domestic reporting rules. In particular, governments may face challenges in terms of the enforcement of domestic reporting requirements when the platform operator is not located in their jurisdiction. Also, platforms facilitating transactions in multiple jurisdictions may be confronted with multiple domestic reporting requirements that may lead to increased costs and burdens.
The OECD’s draft model reporting rules are proposed to provide a uniform basis to collect information on transactions and income realised by platform sellers. Comments about the proposed rules are due by 20 March 2020.
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