The road to a global agreement on changes to the international tax framework has become more uncertain following the US Treasury’s decision to pause some of its participation in the OECD negotiations.
There were always numerous challenges – both political and technical – standing in the way of reaching multilateral consensus by the end of 2020 on the reallocation of global profit in the digitalizing economy. However, the US Treasury’s decision and the responses of several EU countries have decreased the likelihood of success this year and increased the chance of significantly exacerbating global trade and tax tensions.
