On June 18, 2020, OECD Secretary-General Angel Gurría provided a statement on the ongoing negotiations to address the tax challenges of the digitization of the economy.
Gurría said: “Addressing the tax challenges arising from the digitization of the economy is long overdue. All members of the Inclusive Framework should remain engaged in the negotiation towards the goal of reaching a global solution by year end, drawing on all the technical work that has been done during the last three years, including throughout the COVID-19 crisis.”
Gurría said that in the absence of 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, he said.
He added: “A trade war, especially at this point in time, where the world economy is going through a historical downturn, would hurt the economy, jobs, and confidence even further. A multilateral solution based on the work of the 137 members of the Inclusive Framework at the OECD is clearly the best way forward.”