OECD director, tax experts, explore proposed “unified approach to pillar one” for taxing multinational groups
By Julie Martin, MNE Tax
The OECD Secretariat’s proposed “unified approach to pillar one,” designed to encourage agreement among countries on how to rewrite the international tax and transfer pricing system to better account for digital business models, was the focus of the sixth annual Tax Sunday event, held October 20 in Washington, D.C.
The meeting, co-sponsored by the International Monetary Fund and the World Bank Group, featured presentations and discussion by leading tax experts from OECD, government organizations, civil society, business, and academia.
Here are some highlights:
Echoing comments made earlier this week, Pascal Saint-Amans, Director, Centre for Tax Policy and Administration at the OECD, said the OECD Secretariat’s proposal for a unified approach to pillar one was meant to break a deadlock among countries that were going “round and round” in their discussion about how to best update the international tax rules. He said that while he understands complaints that the process is moving too rapidly, especially for developing countries that lack capacity, it is not wise to slow it down. Saint-Amans said that absent agreement, the international tax system will likely enter into a period of chaos. Like the situation now between France and the US, lack of resolution the international tax conflict will degenerate into trade wars, he warned.
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