LLT's Blog

  • Home
  • About me
  • Services
    • Tax and Business Advisory
    • Finance
  • My Network
  • Disclaimer
Ti trovi qui: Home / News / US Withdraws from International Digital Tax Negotiations

US Withdraws from International Digital Tax Negotiations

30 Giugno 2020 by LLT Lascia un commento

On 17 June US Trade Representative Robert E. Lighthizer confirmed that the US was withdrawing from OECD Inclusive Framework discussions on taxation of the digital economy. The decision was communicated to European Finance Ministers in a letter last week, igniting fears of a trade war between the EU and US.   The OECD published a public statement in response to the developments, with OECD’s Secretary-General, Angel Gurría, stating “All members of the Inclusive Framework should remain engaged in the negotiation towards the goal of reaching a global solution by year end…Absent a multilateral solution, more countries will take unilateral measures and those that have them already may no longer continue to hold them back. This, in turn, would trigger tax disputes and, inevitably, heightened trade tensions. A trade war, especially at this point in time, where the world economy is going through a historical downturn, would hurt the economy, jobs and confidence even further. A multilateral solution based on the work of the 137 members of the Inclusive Framework at the OECD is clearly the best way forward.”   EU Commissioner for the Economy, Paolo Gentiloni, responded to the decision stating “We need a digital tax adapted to the reality of the new century. An agreement is needed in the global negotiations. If the American withdrawal makes it impossible, the EU Commission will put a new European proposal on the table”. A failure to agree an agreement at international level will very likely lead to a raft of further unilateral digital taxes being introduced, and retaliatory tariffs, escalating to trade wars.   A virtual meeting of the Inclusive Framework is scheduled to take place in July to discuss progress made by the working groups. It was expected that details of the key policy features would be agreed and made public in October and a report produced for the G20 by the end of the year on the final solution agreed on by the Inclusive Framework.  
Ref.: CFE’s Global Tax Top 10 – June 2020

Archiviato in:News Contrassegnato con: Digital economy, international taxation, LawOneTax, OECD

Lascia un commento Annulla risposta

Devi essere connesso per inviare un commento.

Owner

Luca Luigi Tomasini
20121 Milano (IT)
Via Monte di Pietà, 21
P. IVA 02670660121

Copyright © 2021 · eleven40 Pro Theme on Genesis Framework · WordPress · Accedi

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessario
Sempre attivato

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non necessario

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.