Countries continue to be involved in Pillar One negotiations because they understand that uncoordinated actions can lead to instability, says the director of the OECD's centre for tax policy and administration, Manal Corwin, ‘even though they've been willing to use tools like [digital services taxes] and unilateral measures, or even if they have them in place’.
Speaking at the International Fiscal Association’s Carol Tello lecture series in Washington on 15 November, Corwin emphasised the importance of international tax agreements as being perceived as relevant and fair, and that the erosion of consensus on international agreements ‘is a risk to the system much broader than whether or not this reallocation of taxing rights under amount A survives’.
Back in July, the Inclusive Framework agreed to a one-year extension of a moratorium on new digital services taxes to allow more time for MLC progress, but it is still uncertain whether the United States will sign the multilateral convention, and Canada have since withdrawn their support of this extension.
Corwin warned that international agreements such as the OECD’s model tax convention and transfer pricing guidelines are not set in stone. She said that if consensus among countries on those agreements breaks down, then their reliability is lost. ‘I think that's an important thing to keep in mind in the context of current conversations,’ she added.
The OECD has now released its seventh annual progress report providing an overview of progress made by the Inclusive Framework during the 12 months to September 2023, which includes detail on the implementation of the two-pillar solution and the BEPS minimum standards, and the other BEPS Actions. The final section focuses on the participation of developing countries in the Inclusive Framework.
Countries continue to be involved in Pillar One negotiations because they understand that uncoordinated actions can lead to instability, says the director of the OECD's centre for tax policy and administration, Manal Corwin, ‘even though they've been willing to use tools like [digital services taxes] and unilateral measures, or even if they have them in place’.
Speaking at the International Fiscal Association’s Carol Tello lecture series in Washington on 15 November, Corwin emphasised the importance of international tax agreements as being perceived as relevant and fair, and that the erosion of consensus on international agreements ‘is a risk to the system much broader than whether or not this reallocation of taxing rights under amount A survives’.
Back in July, the Inclusive Framework agreed to a one-year extension of a moratorium on new digital services taxes to allow more time for MLC progress, but it is still uncertain whether the United States will sign the multilateral convention, and Canada have since withdrawn their support of this extension.
Corwin warned that international agreements such as the OECD’s model tax convention and transfer pricing guidelines are not set in stone. She said that if consensus among countries on those agreements breaks down, then their reliability is lost. ‘I think that's an important thing to keep in mind in the context of current conversations,’ she added.
The OECD has now released its seventh annual progress report providing an overview of progress made by the Inclusive Framework during the 12 months to September 2023, which includes detail on the implementation of the two-pillar solution and the BEPS minimum standards, and the other BEPS Actions. The final section focuses on the participation of developing countries in the Inclusive Framework.
