In response to recent European Union proposals concerning taxation of the digital economy, Business at OECD (BIAC) expressed deep concerns that unilateral action for the taxation of the digital economy will lead to serious distortions in markets and global value chains.
“Business at OECD representing corporate communities across the globe is fully and constructively engaged in the OECD/G20 process to address Base Erosion and Profit Shifting (BEPS), including Action 1 on the digital economy”, confirmed Business at OECD Secretary General Bernhard Welschke. “We recognize there are important and complex issues concerning the digitalization of our economies. However, unilateral action in this field will lead to costly fragmentation and threatens to diminish the considerable potential for growth and innovation,” he added.
Welschke noted that only a comprehensive multilateral engagement between tax authorities, taxpayers and other stakeholders will lead to outcomes that support a successful digital transformation. “Therefore, the OECD is the most appropriate forum in which to pursue this engagement, and we encourage all countries to participate in this multilateral effort,” explained Welschke.
USCIB’s tax expert Carol Doran Klein also noted: “For business to flourish in the digital economy, tax rules must be implemented in a coherent and coordinated manner. USCIB worked actively through BIAC to shape the BEPS work toward this end. Fragmented rules are likely to result in double taxation and a negative impact on global trade and Investment.”