Peter Barnes Addresses Taxation of the Digital Economy on ABA Virtual 2020 May Tax Meeting
2020 is set to be a key year in relation to reforming the taxation of the digital economy. On the global stage, the OECD has set an ambitious July 2020 timeline to agree the key policy elements to its Unified Approach under Pillar One. At the same time, a number of countries have joined France in unilaterally implementing a digital services tax. While a trade war was averted between the US and France, if the OECD fails to reach a workable consensus on Pillar One, digital services taxes could become the default alternative, which would increase the likelihood of retaliatory US tariffs being imposed. The panel will provide updates on the OECD’s latest proposals and consider to what extent an international consensus could be reached on this key issue. Through case studies, the panel will also outline the key characteristics of some digital services tax regimes introduced (or to be introduced) and how they might impact US multinationals. The panel will also explore the impact of such unilateral measures from an international trade perspective.
- Of Counsel