South Centre Comments on Progress Report on Amount A of Pillar One, 18 August 2022
South Centre Comments on Progress Report on Amount A of Pillar One
The South Centre offers its comments to the OECD Inclusive Framework’s Task Force on Digital Economy (TFDE) on the Progress Report on Amount A of Pillar One.
In June 2022, the Coalition for Dialogue on Africa (CODA), a Special Initiative of the African Union, and the South Centre, jointly released country-level revenue estimates from Amount A compared with Article 12B of the UN Model Tax Convention, for the 84 combined Member States of the African Union and the South Centre. CODA and the South Centre have also provided a set of recommendations to developing countries on the taxation of the digitalized economy.
The Progress Report on Amount A, the latest version of the OECD’s proposed solution for taxation of the digitalized economy, makes it clear that the revenues expected for developing countries will dwindle even further than estimated by CODA and the South Centre.
With each successive update of the rules, the proposed solution is becoming increasingly less appealing to the developing countries. The OECD must, at a minimum, release revenue estimates for the 141 jurisdictions of the Inclusive Framework such that each can take an informed decision in the national interest. As an organization that sets ‘transparency’ standards, OECD must itself be transparent and provide countries with the essential information needed for making what may become a historic decision for the international taxation regime.
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This article was tagged: African Union (AU), Amount A, Article 12B, Automated Digital Services (ADS), Coalition for Dialogue on Africa (CODA), Digital Economy, Digital Tax, Digital Taxation, Global Tax, Global Taxation, Inclusive Framework, International Tax, International Tax Cooperation, International Taxation, Organisation for Economic Co-operation and Development (OECD), Pillar One, Progress Report, Task Force on the Digital Economy (TFDE), Tax, Tax Cooperation, Tax Law, Tax Policy, Tax Reform, Tax Revenue Mobilization, Tax Transparency, Taxation, Taxation in Developing Countries