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WILL THE OECD BE ABLE TO ”RINGFENCE” TAXATION OF E-COMMERCE?

As most of the readers know, the OECD administers the Base Erosion & Profit Shifting Project (the “BEPS Program”) and its fifteen action plans. Below are some comments regarding action plan no. 1 – which is focused on the digital economy and the challenges it may create from a tax point of view. In this context, it is important to bear in mind that the end result of the BEPS Program is not to introduce proposals for new legislation in the member countries. On the contrary, but the BEPS Program modifies the OECD Guidelines, which means that the final changes effectively will become “applicable rules” by the tax authorities.  The benefit – as seen by the politicians – is that this means that the changes will not need to be passed by the parliaments and legislative bodies of the different countries. More…