Digital Tax Revamp Scope Divides U.S. Firms, IRS Official Says

Divisions in multinationals’ opinions on the OECD’s proposed global tax rewrite could be a hurdle to the project’s success, an IRS official said Monday.

Numerous companies and industries have asked to be left outside the scope of the section of the proposed rules, known as Pillar One, that would change where some profits are taxed to the countries where companies have users or consumers.

“I see Pillar One as being extraordinarily complex, and I don’t see buy-in on our side of the ocean at this point,” said Peter Blessing, associate chief counsel (international) at the IRS Office of Chief Counsel, ...