OECD member countries might want to start thinking about how tax proposals for capturing companies’ profits under the digital economy will affect corporate investment in the long run, an executive at PepsiCo Inc. said in an exclusive interview with Bloomberg Tax.
“When you’re endorsing one or another proposal, think about what the effect on your country will be in the next five to 10 years, not just the immediate return,” said Ognian Stoichkov, global transfer pricing director at PepsiCo.
“What’s the guarantee that operations of the company will not change reactive to that rule?” Stoichkov later added.
Bloomberg Tax sat down with Stoichkov to talk about the Organization for Economic Cooperation and Development’s proposals to tax the digital economy and the changing international tax landscape. Stoichkov also spoke about PepsiCo tax department’s around-the-clock compliance work, the decision to turn to outside consultants, and the C-suite’s heightened interest in tax over the last few years.