OECD: No deal on global digital tax this year


Public pressure has been growing on governments to clamp down on the tax avoidance strategies used by multinationals such as Google, Amazon, Facebook and Apple. — AFP

PARIS: The 137 nations trying to hammer out a new global standard for taxing multinational tech firms will not secure a deal by the end of this year as hoped, the OECD acknowledged on Oct 12.

"The glass is half full: the package is nearly ready but there is still no political accord," said Pascal Saint-Amans, head of tax policy at the Paris-based Organization for Economic Cooperation and Development.

But the OECD does expect to finalise a "digital tax" proposal "sometime in 2021," Saint-Amans added, although he acknowledged persistent US resistance to the plan.

Talks have been labouring on for the past two years on how to ensure that tech giants pay a fair share of taxes in the countries where they operate, even if their headquarters are elsewhere.

Public pressure has been growing on governments to clamp down on the tax avoidance strategies used by multinationals such as Google, Amazon, Facebook and Apple – the so-called "GAFA" – who are accused of shifting their profits to countries with lower tax rates.

The coronavirus crisis hindered progress this year on implementing a levy, even though "the Covid-19 pandemic makes the need for a solution even more compelling," the OECD said.

Failure to reach a global agreement could prompt some countries to go it alone on digital taxation.

Several European countries including France and Britain have already announced their own levies in the absence of a global accord.

That has infuriated Washington, which says American companies are being unfairly targeted.

"Despite the exceptional circumstances, there are a lot of strong feelings and impatience, and the temptation to take unilateral action faced with a measure that will take years to implement," Saint-Amans said at a press conference at the OECD's headquarters in Paris. – AFP

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Tech News

Rights for US gig workers are a political issue now, but many of them can’t vote
US woman reports catching intruder while recording dance video
Sources: US states plan to sue Facebook next week
AI untangles one of biology’s great challenges
Single player gaming alive and well, Sony report finds
US labour board alleges Google retaliated against activists
Appeals court schedules Dec 14 hearing on blocked US TikTok new user ban
MCMC: Students should utilise Community Internet Centres nationwide
Elon Musk’s US$139bil fortune leads massive EV wealth gains
Trump’s unproven vote claims lead to cyber staff exodus

Stories You'll Enjoy