USCIB Acknowledges the G20 Finance Ministers Endorsement of the October Two-Pillar Global Tax Proposals

Washington D.C., October 13, 2021—The United States Council for International Business (USCIB) notes the endorsement by the G-20 Finance Ministers today of the OECD/G20 Inclusive Framework landmark deal announced on October 8. The deal, agreed by 136 countries, including the US, establishes a new framework for international tax reform represented by two distinct proposals or pillars. The two-pillar solution will be delivered to the G20 Leaders’ Summit in Rome at the end of the month while the intensive work on the design and drafting of the numerous parts of the deal continues into 2022.

“The OECD has once again reached a significant milestone on schedule and was able to add a handful of key countries into the fold of the deal agreement since July,” said USCIB Vice President and International Tax Counsel Rick Minor.

The October deal terms include a long list of technical work that must still be completed in relatively short order according to the OECD timeline. USCIB Tax Committee company members are positioned to directly advise the OECD drafting teams through its membership in the Business at OECD Taxation Committee. According to Minor, “putting aside the ambitious timelines through 2022, our members will be focused on the development of the design and details for key aspects of each of the pillars. With respect to Pillar One, this includes, but is not limited to, dispute prevention and resolution mechanisms, the tax liability rules, revenue sourcing, the marketing and distribution safe harbor and so-called Amount B. We are also mindful of the fact that the drafting of the Pillar Two rules is on a parallel path with the numerous GILTI deliberations in Congress this fall which arguably puts pressure on that process if there is no coordination in review.” USCIB will remain engaged in the OECD rule design process through Business at OECD and directly, through the appropriate engagement.

About USCIB

USCIB promotes open markets, competitiveness and innovation, sustainable development, and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. As the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers (IOE) and Business at OECD (BIAC), USCIB provides business views to policy makers and regulatory authorities worldwide and works to facilitate international trade and investment. More at www.uscib.org.

Contact:

Rick Minor

VP and International Tax Counsel

rminor@uscib.org

USCIB Meets With New OECD Secretary General Cormann on His First Official DC Visit

L-R: Kennedy, Robinson, SG Cormann, Johnston meet in the OECD Washington DC office in July 2021

USCIB members joined a first meeting and dialogue with OECD Secretary General Mathias Cormann, hosted by the U.S. Chamber of Commerce on July 21 in Washington DC. USCIB President and CEO Peter Robinson, and Citi Managing Director and Business at OECD (BIAC) Chair Charles R. Johnston, led the discussion, along with USCIB Board Member and Executive Vice President for International Affairs at the Chamber Myron Brilliant.

As the U.S. affiliate of and representative to BIAC, the official business spokes-organization to the OECD, USCIB values and engages with OECD on a wide range of cross-cutting issues. In light of the U.S. chairmanship of this year’s OECD Ministerial Council Meeting on October 5–6 in Paris, the meeting offered USCIB Committee Chairs and other active member representatives the opportunity to highlight their priorities for OECD’s policy recommendations.

SG Cormann described his leadership priorities for OECD, which center around restoring economic growth and recovery, including through multilateral trade. He highlighted the thought leadership role of the OECD in G7 and G20 discussions of a global corporate minimum tax rate. He also discussed the potential for OECD to contribute to a possible similar global conversation on carbon pricing and carbon border adjustment. Other topics covered included responsible business conduct; tackling illicit trade; and innovation and digital economy.

In his closing remarks, Robinson stated, “Imagine what could be accomplished if all multilateral institutions followed the OECD’s consultative model to work with business and co-create solutions to urgent challenges!”

Robinson thanked Cormann, and said that USCIB and the American business community are dedicated to working with OECD through BIAC to show the way through and past the pandemic on fundamentals like regulatory coherence and combatting corruption, as well as on emerging technologies and issues.

In the News: USCIB Quoted in Tax Notes Following OECD Global Tax Update

USCIB Vice President for Taxation Policy Rick Minor was quoted in a lead article in Tax Notes on July 6 regarding the significant global tax update statement made on July 5 by the Organization for Economic Cooperation and Development (OECD).

The OECD inclusive framework on base erosion and profit shifting confirmed that 130 of its 139 members have agreed on key elements of the plan, which aims to address the tax challenges of an increasingly digital and globalized economy.

According to the OECD, the 130 countries and jurisdictions represent more than ninety-percent of global GDP.

In the Tax Notes article, Minor said the USCIB’s members will follow the inclusive framework’s progress closely. “I understand the next significant document will be the design and implementation plan mentioned in the statement,” he said. “We should expect consultation with the business community will continue more earnestly now.”

USCIB Tax Committee members Will Morris (PwC) and Robert Stack (Deloitte) were also quoted.

Carol Doran Klein Retires, USCIB Welcomes Rick Minor as New Tax Lead

Carol Doran Klein
Carol Doran Klein

USCIB is pleased to announce that Richard Minor (who goes by Rick) has joined as its next International Tax Counsel upon Carol Doran Klein’s retirement.

“Carol has contributed immeasurably to the strengthening of the USCIB tax practice and we are grateful for her professional contributions and personal friendship over the last ten years,” said Peter Robinson, USCIB’s president and CEO. He added, “While we are saddened to see Carol go, Rick is a worthy successor and an excellent addition to the USCIB team. He brings a wealth of technical knowledge on international tax matters, experience in OECD tax policy and process, and a robust foreign government and European Commission network. I’m confident his expertise and international perspective will serve USCIB members well.”

Rick Minor
Rick Minor

Minor has deep experience in both the private and public sectors, having held senior tax roles with three large companies in Europe, in addition to serving as a Digital Policy Advisor to the Government of Luxembourg on a broad range of cross-border business issues with particular regard to EU data privacy, VAT and digital tax policy. His corporate background included positions as Vice President, Group Tax Counsel and Government Affairs for AOL Europe; Head of Tax, EMEA for ArcelorMittal; and Director of Tax, EMEA for Honeywell Europe. Minor also served as Director of International Cooperation and Business Investment for the North Carolina Department of Commerce, working to attract U.S. and foreign corporate investment to North Carolina. Minor got his bachelors at Duke University, his law degree at UNC-Chapel Hill and his LL.M. in tax at Georgetown. He began his career as an attorney specializing in international tax planning with global law firms in DC, Munich and London. Doran Klein and Minor served together on the OECD Technical Advisory Group (TAG) for VAT.

Minor assumes management of the USCIB Committee on Taxation, which promotes sound, appropriate and consistent international tax policy in the U.S. and overseas, including minimizing double taxation. The committee is chaired by Bill Sample, tax policy advisor at Microsoft Corporation, and encompasses leading tax professionals from USCIB member companies and organizations. The committee is especially active on OECD matters, in view of USCIB’s role as the American affiliate of Business at OECD (BIAC), and organizes a yearly conference bringing together USCIB members with top tax officials from the OECD and member governments.

USCIB Submits Comments to USTR on Proposed Digital Services Taxes

USCIB provided comments to the United States Trade Representative (USTR) regarding the proposed Digital Services Taxes (DSTs) of several countries, including Austria, Brazil, Czech Republic, India, Indonesia, Italy, Spain, Turkey, the United Kingdom, as well as the European Union.

USCIB’s submission focused on whether these countries violated Section 301 while encouraging the U.S. to seek a multilateral solution.

“The DSTs under investigation are a poor choice to address the tax issues arising from digitalization of the economy and will work against the economic recovery they are intended to help fund,” said USCIB Vice President for Taxation Policy Carol Doran Klein. “Rather, the U.S. should work cooperatively to find an appropriate multilateral solution to taxing the digitalizing economy that does not unduly burden U.S. interests and fosters certainty for business.”

Business at OECD Head Shares 2020 Policy Priorities With USCIB

Business at OECD’s Russel Mills (left, center) with IOE’s Shea GoPaul and USCIB policy staff

Secretary General of Business at OECD (BIAC) Russel Mills visited USCIB’s Washington DC and New York offices the week of February 3 to update staff on Business at OECD and OECD priorities for the year.

Mills shared that environment, biodiversity, plastics and climate change issues are moving to the top of the agenda, however there will also be a mushrooming of digitization plans and digital economy work related to changing business models and digitally enabled companies. Mills also noted that policies around digital taxation and re-skilling will be on top of the agenda for both organizations.

“We really valued our time with Russel, which gave us an opportunity to touch base on our respective organizations’ policy priorities,” said USCIB President and CEO Peter Robinson. “USCIB looks forward to a productive year working with BIAC to help drive the work of the OECD.”

Robinson Kicks Off 2020 With OECD, ICC France, ICC Germany 

ICC-Germany staff (Secretary-General Oliver Wieck, center) with USCIB President and CEO Peter Robinson (right) in Berlin

The Organization for Economic Cooperation and Development (OECD) held its annual consultation with Business at OECD on January 13 in Paris under the theme, Role of Business in Lifelong Opportunities: People First Policies to Bridge Divides. USCIB President and CEO Peter Robinson and AT&T Senior Vice President Karim Lesina provided a kick-off presentation on behalf of industry, followed by remarks by OECD Secretary-General Angel Gurria and Business at OECD’s Chairman Phil O’Reilly and Secretary-General Russell Mills.

Recommendations by Business at OECD focused on the value of relying on open markets on trade, investment, taxation and development initiatives; ensuring a people-first approach to developing new approaches to the Future of Work; and incentivizing and driving innovation in the health and environment areas in the 5G generation.

According to Robinson, it was the best-attended consultation to date, with a strong business delegation, senior OECD staff including all four Deputy Secretaries-General and OECD Ambassadors from nearly all OECD member countries. In helping to set the stage, Robinson emphasized the continued commitment of the American business community to open markets and multilateral approaches and institutions. “The necessity for inclusive multilateralism, whereby all stakeholders—including business—have a seat at the table to pursue societal challenges together is crucial,” said Robinson, who also praised the OECD in setting an appropriate example in this regard.

Lesina provided the perspective of a leading modern media company that is investing globally while driving innovation in life-long learning opportunities for its employees.  He highlighted that increased convergence and digitalization have helped create a truly global economy, providing consumers today with a unique opportunity to benefit from cross-border activity best cultivated by open market policies. Lesina emphasized the need for flexible policy and regulatory frameworks that foster innovation and drive creativity and underscored the vital role of the OECD in delivering the benefits of the digital economy to consumers everywhere through forward-looking and evidence-based policymaking.

“The Consultation provides an excellent opportunity for business to interact with OECD staff and country Ambassadors,” said Robinson. Robinson had several meetings with OECD management staff to discuss Business at OECD and USCIB priorities.

While in Paris, Robinson also visited USCIB’s International Chamber of Commerce (ICC) National Committee counterpart, ICC-France, and met with the new Secretary-General of ICC-France, Emmanuelle Butaud-Stubbs, to discuss mutual interests and priorities and cooperation in policy areas including trade and environment.

Robinson then traveled to Berlin to meet with several of USCIB’s global affiliate counterparts in Germany: ICC-Germany, the German Employers Federation (BDA) and the German Chamber of Industry and Commerce (DIHK). Secretary-General of ICC-Germany Oliver Wieck, Director of Communications Katrin Rupprecht and staff organized a discussion forum at which Robinson addressed U.S. Trade Policy in 2020. ICC-Germany members including Siemens, Thyssenkrupp and BDI attended as did Dr. Berend Diekmann, head of division for USA/Canada/Mexico from the Federal Ministry for Economic Affairs and Energy. Finally, Robinson met with BDA CEO Steffen Kampeter and DIHK Director of ATA Carnet Dr. Kornelia Ferati.

USCIB Tax Expert Featured In International Tax Review’s ‘Global Tax 50’

The International Tax Review (ITR) publication released its annual ‘Global Tax 50’ in December, featuring a rundown of the most influential individuals, organizations, geopolitical events and trends in the tax world. Among the Global Tax 50 is USCIB Vice President for Taxation Policy Carol Doran Klein. 

According to ITR, “voices like Doran Klein will be crucial” in 2020.

In her feature, Doran Klein suggested that “the biggest challenge of 2020 will be getting a political deal on digital tax that holds together the unified approach.”

This ninth edition of the ITR’s Global 50 represents the choices of the ITR editorial team, who decided who or what they thought has had the biggest impact on taxation during the past twelve months. Breaking down the entire 50 individually according to the impact they made would require too granular an approach, so the magazine list is ordered alphabetically.

New OECD Deputy Secretary General Meets With USCIB

L-R: OECD Deputy Secretary General Ulrik Vestergaard Knudsen; Head of the OECD’s Washington office Will Davis

USCIB members and staff had the opportunity to meet with the new Organization for Economic Cooperation and Development (OECD) Deputy Secretary-General Ulrik Vestergaard Knudsen on November 5 at the USCIB Washington DC office. Knudsen’s diverse policy portfolio at the OECD includes science, technology and innovation, trade and agriculture, the OECD Center for Entrepreneurship, SMEs, as well as regions and cities.

The dialogue between Knudsen and USCIB members focused on areas of mutual interest such as taxation policy, including the pressing issue of digital taxation, as well as cross-border data flows, healthcare, trade and investment, digital trade, and the Going Digital Project. Knudsen also mentioned Artificial Intelligence (AI) as an increasingly important issue for the OECD and the establishment of the OECD AI Policy Observatory, which will help countries nurture and monitor the responsible development of trustworthy AI systems for the benefit of society.

L-R: Norine Kennedy (USCIB), Will Davis (OECD Washington), Ambassador Ulrik Vestergaard Knudsen (OECD), Peter Robinson (USCIB), Eva Hampl (USCIB), Rob Mulligan (USCIB)

USCIB members from Microsoft, IBM, General Electric, CropLife America, Walmart and others, benefited from the opportunity to hear directly from OECD leadership regarding the OECD’s priorities as well as an update on the OECD accession process. USCIB participants underlined the importance of maximizing access for business and other responsible stakeholders in all OECD committee meetings.

“We are grateful that DSG Knudsen took the time to meet with U.S. business,” said USCIB Senior Vice President for Policy and Government Relations Rob Mulligan. “USCIB staff and members always appreciate an opportunity to provide perspectives to the OECD staff and secretariat to help inform the OECD’s science-based policy recommendations.”

USCIB is the U.S. national committee of Business at OECD (BIAC).

USCIB Urges Treasury to Work With OECD on Digital Taxation

In response to the continuing and extensive digitalization of the economy and increasing calls by countries to tax the income of technology companies that earn revenue in a market without necessarily having a traditional physical presence in that market, USCIB sent a letter on October 4 to Secretary of the Treasury Steven T. Mnuchin. The letter urges Secretary Mnuchin to continue to work with the OECD and other countries to achieve the best outcome for U.S. taxpayers, the U.S. Treasury, and the U.S. economy.

“USCIB believes that any fundamental changes to the international tax rules should be achieved through a consensus-based process,” said USCIB Vice President for Taxation Policy Carol Doran Klein.

According to USCIB’s letter, the best place to conduct a consensus-based process is at the OECD where over 130 countries are participating in a project to attempt to achieve consensus on possible new rules applicable to the broad digitalized economy. The United States Treasury has, to date, been an active participant in this project, including serving as vice-chair of the steering group.