Peter Barnes Comments on Digital Tax Deal in Tax Notes

Countries should build on the multilateral cooperation that made automatic information exchange possible in order to reach agreement on global corporate tax reform, the OECD’s secretary-general told delegates at a key meeting.

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While the OECD work on the two-pillar solution continues, “there’s very little work being done on harmonizing the interim measures,” Peter Barnes of Caplin & Drysdale said during a July 1 American Bar Association webcast. Harmonization on those measures may have to be left for another day, he added.

Many countries say they intend to roll back their unilateral measures once an OECD solution is in place, according to Michael Alliston of Norton Rose Fulbright LLP in London, who also spoke on the ABA webcast. However, if a jurisdiction doesn’t like the solution, then it could very well keep its interim measure on the books, he said.

Overall, the OECD has “done a great job” soliciting input from all jurisdictions, Barnes said. “That is going to be a major factor . . . if the OECD is able to achieve success here,” he added.

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