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Tiffany Wang is anIPilogueWriter,Intellectual Property Journal Editor, and a 2L JD Candidate at Osgoode Hall Law School.
Through accelerating digitalisation, the pandemic has vaulted taxation to the forefront of the global political and economic system. The Organisation for Economic Co-operation and Development (“OECD”) commenced public consultations in January to . The growth of multinational enterprises (“MNEs”), particularly digital corporations, enervates the current global corporate tax system, and the OECD opines that a (“GDP”). Two proposals, Pillar One and Pillar Two, seek to address this quagmire.
jurisdiction. (currently agreed at ). , . The endorsed package has .
Digitalisation pares back the integrity of tax structures. Tax avoidance runs rampant, and the two proposals attempt to outduel digital corporations’ approach of poaching taxes.
Presdent Biden’s leadership on pushing the two pillars through Congress and the G20 demonstrates a recycling of traditional taxation in dealing with Big Tech MNEs. Google, Amazon, Facebook, and Apple (“GAFA”) awaits trial as Washington envisions .
The lore of the minimum tax plan is “.” The global taxation reset presses for a pro rata basis of digital taxation to avoid base erosion. If Congress favors this plan, digital MNEs may fall prey to a .
Ambitious and focused, the OECD will ensure that all major players have some skin in the game of international taxation and digitalisation.