The leading members of the United States Senate Committee on Finance have called on the OECD and member countries to abandon plans to introduce digital services taxes and defer discussions on multilateral digital tax measures until the health crisis has passed.
Shortly after the OECD issued a statement confirming that it will continue its work to build an international consensus on new rules to tax digital multinationals, Finance Committee Chairman Chuck Grassley (R-IA), and Ranking Member Ron Wyden (D-OR) made the following response:
"We strongly encourage OECD member countries to abandon plans for digital services taxes on US businesses and to continue working toward an agreement on a more realistic timeline given the COVID-19 crisis. We support Treasury continuing to negotiate on these important issues and urge the Inclusive Framework to find areas of consensus that do not unfairly target and discriminate against US companies."
"We agree these negotiations cannot be rushed, particularly at a time when the world should be focused on addressing the current economic and health crises. The proposals under discussion would have a dramatic effect on the global tax landscape, and on US businesses in particular, and they deserve appropriate attention and continued deliberation.
"The OECD is the best venue for resolving these issues, but an agreement should not be reached unless it is fair to the United States and the US business community."
However, in his June 18 statement, OECD General-Secretary Angel Gurria urged all members of the Inclusive Framework to remain engaged in the negotiation towards the goal of reaching a global solution by year-end.
"Absent a multilateral solution, more countries will take unilateral measures and those that have them already may no longer continue to hold them back. This, in turn, would trigger tax disputes and, inevitably, heightened trade tensions," Gurria warned.
However, on June 17, US Trade Representative Robert Lighthizer informed Congress that the US Government has withdrawn from these multilateral discussions. The Office of the USTR is also examining the legitimacy of certain national digital tax measures and proposals under Section 301 of the 1974 Trade Act, which gives the USTR broad authority to investigate and respond to a foreign country's action that may be unfair or discriminatory and negatively affect US commerce.
（Resource: Wolters Kluwer Global Daily Tax News Date: 2020-06-24）
