The OECD has published public comments received on its draft model rules for reporting for platform operators with respect to sellers in the sharing and gig economy.
The draft model roles propose a consistent approach to the reporting obligations for operators of online platforms to facilitate monitoring by revenue authorities of the tax compliance of the sellers who use those platforms.
A number of firms, including PwC, Deloitte and KPMG responded to the consultation, raising a number of observations and suggestions, including the following:
The proposals to require platforms to assess sellers’ tax residence status, independently verify information provided by sellers and obtain tax identification numbers of sellers would represent a significant additional administrative burden for operators and should be reconsidered.
An exclusion for smaller platform operators generally (rather than only for start-ups) would be more proportionate, and consideration should be given to extending the proposed excluded sellers rules to large private businesses that have similar tax compliance obligations to large public companies.
The annual reporting requirement for operators should be extended from 31 January following the reportable period to 31 March, to allow time for information to be collected, particularly relating to new sellers registering towards the end of the reporting period.
A uniform reporting system across direct and indirect taxes would avoid unnecessary duplicate reporting obligations.
The introduction of any new measures for businesses during the period of uncertainty created by coronavirus should be avoided.
The OECD has published public comments received on its draft model rules for reporting for platform operators with respect to sellers in the sharing and gig economy.
The draft model roles propose a consistent approach to the reporting obligations for operators of online platforms to facilitate monitoring by revenue authorities of the tax compliance of the sellers who use those platforms.
A number of firms, including PwC, Deloitte and KPMG responded to the consultation, raising a number of observations and suggestions, including the following:
The proposals to require platforms to assess sellers’ tax residence status, independently verify information provided by sellers and obtain tax identification numbers of sellers would represent a significant additional administrative burden for operators and should be reconsidered.
An exclusion for smaller platform operators generally (rather than only for start-ups) would be more proportionate, and consideration should be given to extending the proposed excluded sellers rules to large private businesses that have similar tax compliance obligations to large public companies.
The annual reporting requirement for operators should be extended from 31 January following the reportable period to 31 March, to allow time for information to be collected, particularly relating to new sellers registering towards the end of the reporting period.
A uniform reporting system across direct and indirect taxes would avoid unnecessary duplicate reporting obligations.
The introduction of any new measures for businesses during the period of uncertainty created by coronavirus should be avoided.
