ICC Comments on OECD Pillar 1 public consultation document
ICC welcomed the opportunity to provide comments on the Organization for Economic Co-operation and Development (OECD)’s public consultation on the “Unified Approach” as a part of the ongoing work of the OECD/G20 Inclusive Framework on BEPS.
ICC Comments on OECD public consultation document on the Secretariat Proposal for a “Unified Approach” under Pillar One: Addressing the tax challenges of the digitalisation of the economy
ICC welcomed the opportunity to provide comments on the Organization for Economic Co-operation and Development (OECD)’s public consultation on the “Unified Approach” as a part of the ongoing work of the OECD/G20 Inclusive Framework on BEPS. ICC fully supports a harmonised approach to ensure that international tax rules remain relevant and applicable in an increasingly digitalised global economy.
ICC continues to support the work of the Inclusive Framework and calls for consistent global tax principles to foster increased cross-border trade and investment. ICC reiterates that the OECD’s continued work in this area should build on internationally established tax principles to help define the contours of a suitable tax framework for the digitalised economy that encourages business activities, job creation and economic growth. Strengthening the application of internationally established tax principles in any proposed solution would contribute to building a coherent international regulatory framework for world business whilst also providing a foundation to accommodate continued rapid evolution in digitalised business models.
ICC recognises that there are technical and complex questions regarding taxing rights and profit allocation and underlines the need for a global, collaborative effort to address these challenges, through mutual consensus and broad adoption by countries which would allow for seamless application for business. ICC reiterates that taxation of the digitalised economy should seek to promote, and not hinder, economic growth and cross-border trade and investment, and that any solutions should embed measures against double taxation for compliant taxpayers, failing which the consequences could hinder global trade in the digital era;
ICC provided high-level comments on unambiguity of the law, simplicity and clarity on scope of application; the role of the current (Post-BEPS) arms-length principle; impact assessment; elimination of double taxation and stressed the need for effective dispute avoidance and dispute resolution mechanisms.
ICC welcomes the efforts of OECD to find a global solution by the end of 2020 and remains committed to providing knowledge and expertise on behalf of business with a view towards determining a long-term global solution to address taxation of the digitalised economy.