International review for January 2020

The OECD continues its work on reforming the taxation of the digitalised economy with consultations on its pillar one and pillar two proposals but there is reduced optimism over reaching a meaningful consensus among leading OECD members. The European Parliament has expressing concern over the lack of a common EU approach on these discussions and it has called for member states to agree to a joint and ambitious EU position supported by the Commission’s commitment to propose an EU solution if agreement cannot be reached internationally by the end of 2020. Meanwhile tensions remain between the US and both France and the UK over their digital services taxes. In other news the OECD has released additional guidance on CBC reporting. A new attempt has been made to revive the EU financial transactions tax – the German finance minister issued a revised proposal to the participating...