Businesses Say Global Tax Guidance Nulls Simplification Efforts

Businesses are criticizing a part of recent OECD guidance on the global minimum tax rules, saying it complicates a temporary measure that provides a simplified method to determine if they are subject to the tax.

At issue are rules in the Dec. 18 guidance aimed at curbing what OECD negotiators have identified as avoidance transactions that take advantage of differences in accounting and tax treatment to qualify for a safe harbor under the minimum tax rules.

Peter Barnes, of counsel at Caplin & Drysdale, said he understands the need for the OECD to address stakeholder concerns. “But my own view ...