Pandemic delays global deal to stop tax-dodging tech giants… just as they enjoy a huge surge in online shopping
Global efforts to agree to rules for taxing technology companies have been delayed because of the Covid-19 pandemic.
The Organisation for Economic Cooperation and Development (OECD), which has led talks between 140 countries, wants to devise a regime for taxing digital firms but has missed its target of striking an agreement by this week.
Pascal Saint-Amans, the organisation’s head of tax administration, said a meeting of nations over the weekend was meant to be ‘about approving a solution’.
The Organisation for Economic Cooperation and Development wants to devise a regime for taxing digital firms but has missed its target of striking an agreement by this week
But he said ‘We have been delayed by Covid, by the working methods, by the overall political environment. We have no agreement but we are a step closer to the agreement.’
There is mounting anger at multinational firms that cynically shift profits around the world to minimise their bills, with internet giants accused of being among the worst offenders.
That has prompted some countries, including the UK and France, to bring in unilateral taxes of their own to address concerns.
The Government has said it will abandon its digital services tax in favour of rules proposed by the OECD, should they be agreed by governments around the world.