Speaking at an online conference organised by the Tax Policy Center on Thursday 21 May, Pascal Saint-Amans, Director of the OECD's Centre for Tax Policy and Administration, outlined some of the difficulties of the G20/OECD Inclusive Framework on the BEPS in reaching agreement on the OECD's proposal for Pillar I (digital taxation) of international tax reform.
“It is clear that the US has sent sometimes contradictory messages on Pillar I”, he said, citing the Safe Harbor proposal, which is “difficult for other countries to accept”.
Another development disrupting the negotiations is that some countries now want Pillar I to be limited to digital companies, who are widely seen as the big winners of the Covid-19 pandemic, Mr Saint-Amans explained. This is an idea that is likely to not please either the United States or China.
The pandemic has also pushed the OECD's agenda, forcing it to postpone the plenary meeting of the G20/OECD Inclusive Framework on the BEPS until October; it was due to take place in July and should see an agreement being reached on the main political features of the reform (see EUROPE 12479/21).
Without saying more about the nature of the package that could be presented in October, Mr Saint-Amans nevertheless felt that “progress on the substance” should have taken place by then. (Original version in French by Marion Fontana)