100+ Nations Commit To Tax Reform For Facebook & Google By 2020
The OECD has revealed over 100 nations have pledged their support of an international consensus, to finalise tax reforms for digital tech giants (such as Google, Facebook and Amazon) by 2020.
In lieu of an international solution, the Australian government in addition to several European countries and India, has affirmed to close local loopholes.
The new comes after the ACCC has further progressed its inquiry on the impact of digital tech giants such as Facebook and Google.
In a new report commissioned by the G20, the Organisation for Economic Cooperation and Development (OECD) claims large tech companies have historically heavily reduced their tax payments, at the expense of local governments.
Following the growth of digital tech companies, 110 countries have reportedly agreed to review ‘outdated’ segments of international tax law.
The report is scheduled to be presented to the G20’s finance ministers at a Buenos Aires meeting on March 19th – 20th.
A central issue surrounds what portion of a company’s operations are required to be established in a country, for its taxes to be applied locally. Allocation of profits across multinational borders is also a focal point.
Next week, the European Commission will propose large tech companies with notable digital revenues in the EU, could face a 3% tax on turnover.
French Finance Minister, Bruno Le Maire, has reportedly touted the OECD’s latest report as a “positive and important step”. Mr Le Maire has been vocal about his focus to retrieve more tax from large-scale digital tech companies.