Pillar One Remains ‘Best Shot’ For DSTs, EU Officials Say (1)

EU officials affirmed the OECD’s framework to reallocate corporate profits as the best chance of enforcing an effective tax on digital services.

Forgoing what is known as Pillar One would risk double taxation and market fragmentation, multiple EU officials said Thursday at the European Parliament’s subcommittee on tax matters about taxing digital activities.

The OECD inclusive framework, the group of countries negotiating the deal, “remains our best shot” at taxing digital companies, said Benjamin Angel, European Commission director for direct tax.

Pillar One is the first half of a two-part global tax deal negotiated at the OECD whose ...