U.S. Investigation of Digital Services Taxes—Will It Affect Multilateral Negotiations at OECD?

    View Author June 2020

    On June 2, 2020 the U.S. Trade Representative (USTR) announced new investigations under Section 301 of the Trade Act of 1974 regarding digital services taxes (DSTs) that have been enacted or proposed in a number of countries—namely, Austria, Brazil, the Czech Republic, India, Indonesia, Italy, Spain, Turkey, and the U.K. Section 301 authorizes the USTR to recommend retaliatory measures, such as tariffs, if a foreign law is found to be ‘‘unreasonable or discriminatory and burdens or restricts U.S. commerce.’’ A foreign law is deemed to be unreasonable if the law, ‘‘while not necessarily in violation of, or inconsistent with, the international legal rights of the U.S., is otherwise unfair and inequitable.’’ In this article published by Bloomberg Tax, Jeff VanderWolk explores whether U.S. investigation of digital service taxes will affect multilateral negotiations at the Organization for Economic Cooperation and Development (OECD).