The CBI has responded to the questions the OECD are considering as part of their continued work on Base Erosion and Profit Shifting (BEPS) under Action 1: Addressing Tax Challenges of the Digital Economy.
The CBI response welcomed the OECD commencing a meaningful conversation between governments on taxation of the digitalised economy. The CBI urges the conversation in the immediate term to be focused on reaching consensus of the way forward to build a sustainable multilateral option. The OECD has an incredibly important role to play in preventing a wave of unilateral uncoordinated actions being taken in the short term – and business requires an international consensus that provides clarity and simplicity.
The CBI’s response drew out the following key points:
- The importance of digital as a driver for growth
- The need for continued business engagement and particularly that the OECD provides opportunities for SMEs to contribute to the debate
- The CBI remains in agreement with the recommendation in the OECD 2015 BEPS Action 1 report that the digital economy should not be ringfenced for tax purposes.