Public consultation on ‘pillar one’ is attracting worldwide interest. There have been more than 300 written contributions and 3,000 pages of comments.
In focus is the scope, design and economic impact of a plan that would require ‘consumer-facing businesses’ to apply a new ‘three-tiered’ approach to profit allocation based on sales. The consultation is intensive and many aspects of the proposal remain contentious.
UK industry bodies are understandably concerned by the proposal and have made significant contributions. I have set out below a summary of their positions in the public consultation:
Not all UK contributors harbour concerns. One UK business contributor, Royalty Range, praises pillar one as ‘a single, trusted, incontestable method and system’ which ‘will not require significant financial investments from any of the participants’.
Time will tell if the appeals for exemption are upheld. The OECD is open to exploring a financial services exemption, but the exemption of gambling, retail and telecommunications is less certain and likely to be resisted.
Public consultation on ‘pillar one’ is attracting worldwide interest. There have been more than 300 written contributions and 3,000 pages of comments.
In focus is the scope, design and economic impact of a plan that would require ‘consumer-facing businesses’ to apply a new ‘three-tiered’ approach to profit allocation based on sales. The consultation is intensive and many aspects of the proposal remain contentious.
UK industry bodies are understandably concerned by the proposal and have made significant contributions. I have set out below a summary of their positions in the public consultation:
Not all UK contributors harbour concerns. One UK business contributor, Royalty Range, praises pillar one as ‘a single, trusted, incontestable method and system’ which ‘will not require significant financial investments from any of the participants’.
Time will tell if the appeals for exemption are upheld. The OECD is open to exploring a financial services exemption, but the exemption of gambling, retail and telecommunications is less certain and likely to be resisted.