U.S. Pauses OECD Talks After Expressing Concern Over Digital Tax

Just days ago, tax professionals were wondering whether the G20 would meet its 2020 deadline to reach an agreement on multinational taxation. We now have our answer: Treasury Secretary Steven Mnuchin has called for the suspension of the Organization of Economic Co-operation and Development (OECD) talks.

The official statement released by Monica Crowley, Treasury’s assistant secretary for public affairs, stated: “The United States has suggested a pause in the OECD talks on international taxation while governments around the world focus on responding to the Covid-19 pandemic and safely reopening their economies.”

The talks had aimed for a solution by the end of 2020.

In December of 2019, Mnuchin sent a letter to OECD Secretary-General José Ángel Gurría raising both concern and hope that issues faced by the international community might be nearing a resolution. The letter commented on separate aspects of the OECD’s two-pillar approach, with Mnuchin expressing concerns about Pillar 1, but supporting the general concepts of Pillar 2.

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