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On 13 February 2019, the OECD released a public consultation document on "Addressing the tax challenges of the digitalisation of the economy". The consultation will run until 1 March 2019, and a public meeting will then be held in Paris on 13 and 14 March 2019. If agreed at the Inclusive Framework, any of the proposals could have a significant impact on all international businesses.

While a recent policy note referred to two "pillars", this term is not used in the formal consultation document. Instead, two chapters are included covering "Revised profit allocation and nexus rules" and "Global anti-base erosion proposal" (Chapters 2 and 3 respectively). It is expected that any agreed international solution will contain an element from each chapter simultaneously; it is clear that there are more design considerations to be discussed in relation to the three proposals on revising profit allocation and nexus than the one covering anti-base erosion, but detailed technical work still needs to be completed for both.

Each chapter sets forth an illustration of the challenges members have identified, then gives more detail on the proposals that the Inclusive Framework countries are examining on a "without prejudice" basis. A number of questions are included for each chapter, ranging from how they could re reconciled and where lines should be drawn, to how some observed technical challenges could be overcome

Profit allocation and nexus rules