The Anatomy of an Impasse –Taxation of the Digital Economy

    View Author July 2020

    As all of the international tax policy world knows by now, U.S. Treasury Secretary Stephen Mnuchin informed the finance ministers of France, Italy, Spain, and the U.K. in mid-June that, in his view, the multilateral negotiations on proposed tax law changes regarding cross-border business income had reached an ‘‘impasse.’’ The four European countries want to increase the taxing rights of market jurisdictions over large global multinationals providing automated digital services. The U.S., home to most of the companies that would be affected, opposes any new rules that would single out for increased taxation, either explicitly or in effect, companies of a particular industry or country.

    *This article was first published in Bloomberg Tax on 7 July 2020.