The Business at OECD (BIAC) Committee on Taxation and Fiscal Affairs has written to the OECD Task Force on the Digital Economy and Working Part 11 on Aggressive Tax Avoidance to raise a number of points in relation to the two-pillar approach to addressing the tax challenges of the digital economy.
BIAC notes that, given the vast and historic nature of the project to reach agreement on the two-pillar approach, there could be multiple impacts that have not yet been foreseen, particularly in relation to trade, investment, jobs and growth.
BIAC’s role within the OECD is not simply to reflect general business views, the letter explains, but also to offer advice on policy design and implementation ‘based upon its knowledge and experience of how business works, and what is practicable – all in support of the OECD’s evidence-based standard-setting role’.
The letter notes that this has so far not happened on the digital economy project. The BIAC tax committee has expressed its ‘significant concern with the lack of interaction between business and the inclusive framework since the release of the blueprints and the subsequent consultations in January 2021’. This concern was not only in relation to the lack of formal consultation, but also the inability of BIAC to engage informally on the proposals. The tax committee proposes to now start in-depth work in an advisory capacity ‘on the technical issues through a formal, transparent and understandable process’ to facilitate smooth implementation of both pillars and to ensure businesses engage with the multilateral process in the future.
The Business at OECD (BIAC) Committee on Taxation and Fiscal Affairs has written to the OECD Task Force on the Digital Economy and Working Part 11 on Aggressive Tax Avoidance to raise a number of points in relation to the two-pillar approach to addressing the tax challenges of the digital economy.
BIAC notes that, given the vast and historic nature of the project to reach agreement on the two-pillar approach, there could be multiple impacts that have not yet been foreseen, particularly in relation to trade, investment, jobs and growth.
BIAC’s role within the OECD is not simply to reflect general business views, the letter explains, but also to offer advice on policy design and implementation ‘based upon its knowledge and experience of how business works, and what is practicable – all in support of the OECD’s evidence-based standard-setting role’.
The letter notes that this has so far not happened on the digital economy project. The BIAC tax committee has expressed its ‘significant concern with the lack of interaction between business and the inclusive framework since the release of the blueprints and the subsequent consultations in January 2021’. This concern was not only in relation to the lack of formal consultation, but also the inability of BIAC to engage informally on the proposals. The tax committee proposes to now start in-depth work in an advisory capacity ‘on the technical issues through a formal, transparent and understandable process’ to facilitate smooth implementation of both pillars and to ensure businesses engage with the multilateral process in the future.
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