Digital Tax Plan May Prompt Need for New Global Referee (1)

A global plan to rewrite how the digital economy is taxed could create new conflicts between countries hoping for a bigger bite of multinationals’ profits.

The Organization for Economic Cooperation and Development is working on a plan to allocate more corporate profits to countries where multinationals have a large market presence but little or no taxable presence. That means some countries would see more tax revenue under the plan while others would see less.

If multiple countries disagree about how much each should get, things could get messy. Some practitioners say an external body to resolve those disputes may be ...