Transfer Pricing Report

Global Tax Plan Could Stifle R&D, Former Microsoft Tax Exec Says

June 3, 2019, 11:27 PM

The OECD’s plan to rewrite global tax rules to give more taxing rights to additional countries could harm investment in research and development, a former vice president for worldwide tax at Microsoft warned.

“We’re talking about moving profit away from active trades or businesses in higher-tax countries,” said William Sample, chair of the U.S. Council for International Business Tax Committee and vice chair of the Business at OECD Committee on Taxation and Fiscal Affairs.

“So there is no free lunch here. That’s going to create a negative impact for some smaller markets and export economies. It might reduce incentives...

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