The Organisation for Economic Cooperation and Development (OECD) today announced the release of an interim report that addresses the tax challenges arising from the digital economy.
The interim report builds on the base erosion and profit shifting (BEPS) report under Action 1 and:
According to today’s OECD release, the interim report underscores that many countries believe challenges to the international tax system remain, and thus establishes the groundwork to move forward at the OECD towards a long-term multilateral solution in the next phase of work. While agreeing to work towards a long-term solution by 2020, some countries believe that there is a strong imperative to act quickly and are in favour of the introduction of interim measures. Other countries, however, are opposed to interim measures and consider that these would give rise to risks and adverse consequences.
The interim report also looks at how digitalisation is affecting other areas of the tax system, including the opportunities that new technologies offer for enhancing taxpayer services and improving compliance, as well as the tax risks, including those relating to the block chain technology that underlies crypto-currencies.
Read a March 2018 report prepared by the KPMG member firm in China
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