OECD/Inclusive Framework – Pillar 1 Impasse Puts the Spotlight on Pillar 2

    View Author June 2020

    On June 12, 2020, Secretary of the Treasury Stephen Mnuchin wrote a two-page letter to the finance ministers of France, Italy, Spain, and the United Kingdom, stating that negotiations on Pillar 1 of the OECD/Inclusive Framework’s program of work on the tax challenges of digitalization were ‘‘at an impasse’’ and calling for a pause in the discussion of Pillar 1 issues. As many readers will know, Pillar 1 relates to proposals to enlarge the taxing rights of market jurisdictions with respect to the profits of multinational corporations making sales to customers in those jurisdictions.

    *This article was first published in Bloomberg Tax on 23 June 2020.