Yesterday, the OECD gave us an update on the work of the Inclusive Framework on Pillars I and II. No agreement on the final package, but here’s what we got, anyway …
We got the official reports on the Pillar I and Pillar II Blueprints (see here and here). Much of the content had been heavily leaked beforehand, but there you go.
We also received the impact assessment. This time around, it includes full details of the methodology used. The previous one had been criticized for not including such details.
And we also get a chance to comment on the Blueprints – public consultation opened yesterday, and runs till 14 December 2020. Here is the condoc.
So no agreement; didn’t stop the OECD trying to put a positive spin on things, though – lack of agreement not withstanding, the Blueprint provides a ‘solid foundation for a future agreement’. I suppose we can take that.
The Inclusive Framework now has a few more months to secure that elusive agreement. The new target is mid-2021.
I’m still not banking on an agreement being achieved. Rather I foresee a proliferation in unilateral measures across countries. Expect more digital services taxes. This could then lead to a harmonization effort across the board, and perhaps also a treaty solution for allocating taxing rights, and relieving double taxation. A role perhaps for the recently proposed Article 12B of the UN Model? Interesting if things actually turn out that way.