The OECD’s Tax Policy Process on Digitalization - Minimizing the Risk of Unintended Damage

    View Author May 2019

    Next year, the Organisation for Economic Cooperation and Development’s Inclusive Framework of 129 countries intends to submit a report to the G20 on how to address the tax challenges of the digitalization of the global economy. While it is impossible to know what the exact components of this proposal will be, it is likely to be supported and implemented by a large swath of participating countries. In this article published in Bloomberg Tax, tax strategy and benefits partner Jeff VanderWolk argues that the inclusive framework should concentrate on finding an approach that is limited in both scope of coverage and degree of reallocation of profits. He warns that implementing components of current draft proposals may result in the weakening of established principles of taxation, leaving multinationals subject to “revenue grabs” wherever their consumers are located.