RIYADH: Japanese finance minister Taro Aso yesterday criticised a US tax reform proposal that he said could undermine global efforts to agree new rules on taxing big tech companies.
The Organisation for Economic Co-operation and Development (OECD) is developing rules to make digital companies pay tax where they do business, rather than where they register subsidiaries – a move that was broadly endorsed by finance leaders of the Group of 20 (G20) major economies.
Yet the OECD efforts were stalled late last year by last-minute changes demanded by Washington, including a proposed “safe harbour” regime which critics say would let multinationals choose whether to abide by the new set of rules or stick to existing regulations.
Many G20 officials view the US as reluctant to deal with a potentially tricky political matter before the presidential election later this year.
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