Brussels, BELGIUM — The Computer & Communications Industry Association today filed comments with the OECD on their proposal for a “Unified Approach” under Pillar One regarding international taxation reform. The OECD aims to achieve an overall consensus in 2020.
In the written comments, CCIA encourages the OECD to be ambitious in its work to achieve consensus on a multilateral solution to tax reform, and not pursue rules that would only apply to a small sector of the digitising economy. To realise the OECD’s ambition of “ensuring [that] all MNEs pay their fair share,” the proposal’s scope should not become too limited. The digitisation of business models will go well beyond consumer-facing businesses. CCIA also agrees with the OECD’s focus on the re-allocation of taxing rights and on taxing profits.
Progress at the OECD is critical as a number of countries continue to pursue unilateral digital taxes. The OECD has repeatedly cautioned against that such “uncoordinated unilateral tax measures, including measures that tax gross revenues” [which] “would undermine the relevance and sustainability of the international tax framework, and would damage global investment and growth.”
The following can attributed to CCIA Vice President & Head of Office Christian Borggreen:
“We welcome and encourage efforts to achieve ambitious, global tax reform within a year. The reform should recognise that the entire economy is digitising and not arbitrarily target just a few digital business models. Governments should prioritise reform at international level over unilateral digital taxes, and any OECD agreement should include a commitment for members to remove unilateral taxes.”
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