Support grows for OECD approach to digital tax

 

 

  • Ibec welcomes latest moves at EcoFin
  • Multilateral approach to finding solutions gaining momentum
  • Growing support for stance adopted by Ireland

 

 

Ibec welcomed developments at the recent EcoFin Council of EU Finance Ministers, which suggests growing support for solving the challenges of taxation in a rapidly digitising economy through the OECD/G20 BEPS process. Our view is that a progress from the OECD/G20 BEPS process is now quite likely and that this multilateral process should be allowed room to continue its important work under the Japanese Presidency of the G20 next year. A progress update from this work is due in early 2019.


In this context, the drive from some EU Member States towards unilateral solutions to the taxation of the digital economy has been a major concern for Irish business over recent times. Apart from constituting poor tax policy proposals, it is clear to us that the previous rushed unilateral proposals would have undercut efforts of 124 countries to arrive at coherent global solutions through the OECD/G20 BEPS process.


In addition, unilateral measures had the potential to play directly into the growing global trade tensions. Ireland is uniquely exposed to these threats given its open, globalised business model. Ibec has been vocal in our support for the strong and coherent position in support of multilateralism held by the Irish Government throughout recent months.


A new French/German proposal has been tabled for discussion at EU level over the coming months but will only now come into effect (if accepted) if the OECD/G20 process fails to deliver a conclusion. We look forward to working with the OECD, Government, and other stakeholders to making further progress on the OECD BEPS discussions on digital taxation over the coming year.

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