CBI responds to EU Commission consultation on fair taxation of the digital economy

The CBI has responded to the EU Commission’s consultation on fair taxation of the digital economy. As always, we endeavour to represent the interests and whole-economy views of our members, and have shared the concerns and priorities of business in our response.   

The CBI supplemented our response to the EU Commission’s online questionnaire with a letter outlining the following key points, which should be considered for tax policymaking with regards to the digitalisation of the economy: 

• The CBI’s highest priority is finding a common global approach to international tax reform in response to digitisation of the economy. 
• The European Commission should form a considered view on the problem that need to be solved and participate with global partners to reach agreement on the problems at hand. 
• Clear articulation of the problem will drive development of solutions and the EC can play a valuable role in identifying solutions and supporting consistent adoption within the EU. 
• To support efforts of developing a common global solution, measures developed within the EU should be aligned with the existing international tax framework and be capable of multilateral adoption by countries within and outside the EU.  No action should be taken at an EU-only level. 
• Solutions developed within the EU should also be aligned to the Ottawa principles to ensure the growth that digitisation promises can be realised. 
• To ensure sufficient progress is being made, the EC should seek to agree a timetable with global partners. 
• The EC must undertake macro-economic impact assessments of solutions it wishes to pursue to truly understand the impact on countries, consumers and companies.