Daily Tax Report ®

OECD Narrowing Focus of Profit Reallocation Plans

July 17, 2019, 7:57 PM

The OECD is moving closer to a digital tax solution since releasing a blueprint for the project in May, a U.S. Treasury official said.

The project seeks to rewrite global tax rules in response to many countries’ concerns that multinationals, particularly digital companies, aren’t being taxed enough or in the right places.

The likely outcome of one part of the project, which seeks to redistribute taxing rights among countries, is coming into sharper focus, said Lafayette “Chip” Harter, deputy assistant secretary of international tax affairs at the Treasury Department. That solution will likely combine traditional transfer pricing rules with formulas...

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