The Organisation for Economic Cooperation and Development (OECD) today released a statement from the OECD Secretary-General in response to recent statements and exchanges regarding ongoing negotiations to address the tax challenges of digitalisation of the economy.
According to the OECD release, the OECD Secretary-General said:
Addressing the tax challenges arising from the digitalisation of the economy is long overdue…. All members of the Inclusive Framework should remain engaged in the negotiation towards the goal of reaching a global solution by year end, drawing on all the technical work that has been done during the last three years, including throughout the COVID-19 crisis. Absent a multilateral solution, more countries will take unilateral measures and those that have them already may no longer continue to hold them back. This, in turn, would trigger tax disputes and, inevitably, heightened trade tensions. A trade war, especially at this point in time, where the world economy is going through a historical downturn, would hurt the economy, jobs and confidence even further. A multilateral solution based on the work of the 137 members of the Inclusive Framework at the OECD is clearly the best way forward….
The OECD noted that it had been directed by the G20 to deliver a consensus-based solution by the end of 2020, and to this end, has gathered 137 countries “on an equal footing” for the negotiations and has developed a two pillar approach, to be discussed in the following weeks leading up to a meeting of the Inclusive Framework in October 2020.
The OECD said it will maintain its schedule of meetings to offer all members of the Inclusive Framework a place in the design of a multilateral approach.
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