BIAC does not for a moment underestimate the difficulty of reaching a broad and deep agreement on pillar one.
Some of its elements are radically new concepts, and reaching agreement between countries will be challenging.
But the alternative of uncoordinated unilateral actions would be damaging to cross-border trade and investment, so Business at OECD (BIAC) continues to believe that an agreement that restores stability and certainty to the international tax system is worth striving for.
And we are convinced that the OECD is the best forum for reaching an agreement that puts fostering inclusive economic growth at its core.
Now that we know the details, the interactions between amounts A, B and C [of the OECD’s proposed three-tier approach] will come into clearer focus, and the definitional issues, whether around ‘routine marketing and distribution functions’ or around ‘consumer facing’ will need to be addressed.
Additionally, subsidiary but important questions around, for example, which accounts to use, who bears the burden of tax, and the recognition of losses will require work. Additionally, the welcome announcement that new dispute resolution rules will apply to amounts A, B and C still does not answer the question of what those procedures will be.
Those issues are not just for governments to address, but also business. In the coming weeks, BIAC along with many of its trade group members, will be working on comments that – framed by our Business principles for addressing the tax challenges of the digitalizing economy – will seek to inform these areas, and ensure that the next stage of the process balances the revenue collection needs of governments, with the vital task of ensuring that cross-border trade and investment and the growth that brings, are protected, and where possible encouraged.
Will Morris, chair of Business at OECD’s (BIAC) Committee on Taxation and Fiscal Policy
Home >Articles > The OECD’s new approach to pillar one: the view from BIAC
The OECD’s new approach to pillar one: the view from BIAC
BIAC does not for a moment underestimate the difficulty of reaching a broad and deep agreement on pillar one.
Some of its elements are radically new concepts, and reaching agreement between countries will be challenging.
But the alternative of uncoordinated unilateral actions would be damaging to cross-border trade and investment, so Business at OECD (BIAC) continues to believe that an agreement that restores stability and certainty to the international tax system is worth striving for.
And we are convinced that the OECD is the best forum for reaching an agreement that puts fostering inclusive economic growth at its core.
Now that we know the details, the interactions between amounts A, B and C [of the OECD’s proposed three-tier approach] will come into clearer focus, and the definitional issues, whether around ‘routine marketing and distribution functions’ or around ‘consumer facing’ will need to be addressed.
Additionally, subsidiary but important questions around, for example, which accounts to use, who bears the burden of tax, and the recognition of losses will require work. Additionally, the welcome announcement that new dispute resolution rules will apply to amounts A, B and C still does not answer the question of what those procedures will be.
Those issues are not just for governments to address, but also business. In the coming weeks, BIAC along with many of its trade group members, will be working on comments that – framed by our Business principles for addressing the tax challenges of the digitalizing economy – will seek to inform these areas, and ensure that the next stage of the process balances the revenue collection needs of governments, with the vital task of ensuring that cross-border trade and investment and the growth that brings, are protected, and where possible encouraged.
Will Morris, chair of Business at OECD’s (BIAC) Committee on Taxation and Fiscal Policy
