G7 Committed To Digital Tax Consensus

G7 countries are committed to working towards a consensus-based solution to the tax challenges of the digital economy, according to the final communique issued at the conclusion of the G7’s summit in Charlevoix, Canada.

Expressing support for the OECD’s work in this area, the communique states that the impact that an increasingly digitized global economy is having on the international tax system remains a “key outstanding issue.”

“We welcome the OECD interim report analyzing the impact of digitalization of the economy on the international tax system. We are committed to work together to seek a consensus-based solution by 2020,” the G7 said.

In supporting the OECD’s digital tax work, the G7 appeared to reject the European Union’s proposals for an “interim tax” on digital companies’ revenues until a consensus is reached, despite the fact that the G7 includes four EU member states, including France, Germany, Italy, and the United Kingdom.

The communique also underlines the G7’s continued support for a multilateral approach to tackling tax avoidance and evasion in general, including through the OECD’s base erosion and profit shifting (BEPS) project.

“In order to ensure that everyone pays their fair share, we will exchange approaches and support international efforts to deliver fair, progressive, effective and efficient tax systems,” the communique states. “We will continue to fight tax evasion and avoidance by promoting the global implementation of international standards and addressing base erosion and profit shifting.”