EuroCommerce, which represents the retail and wholesale sectors in Europe, has declared its support for proposals by the OECD on tax reform relating to the digitalisation of the marketplace, saying such measures would represent a 'major step' towards a fairer tax system.
Under the proposals, multinational firms, particularly those in the digital space, would be prevented from shifting tax payments to countries in which lower tax rates apply, in what OECD Secretary-General Angel Gurría described as a "consensus-based solution to overhaul the rules-based international tax system".
Supportive
Commenting on the OECD's proposals, EuroCommerce Director-General Christian Verschueren commented, “We have been consistently supportive of the OECD’s efforts to reform and adjust the global taxation system to the challenges of the 21st century. The fiscal environment has significantly changed and today’s proposal is a major step towards a fairer and more modern tax system.
"This proposal is a valuable contribution to the discussions in the G20, and we ask governments to decide and act on them swiftly," he added.
Changing Landscape
In a statement, EuroCommerce said that it has long been a supporter of global solutions to deal with changing commercial landscapes, particularly when it relates to corporate taxations.
The group's position is that taxation has to be 'channel-neutral', stating that while digitalisation offers opportunities to retailers and wholesalers, the tax burden needs to be shared in a fairer way among all market participants.
“The technological revolution and the digitalisation of the economy is a global phenomenon," Verschueren added. "It has resulted in major shifts in turnover and profits across geographies, without taxes being properly accounted for where consumption takes place. Hence, only a global consensus on a solution can adequately address the situation.
"The OECD is the right place to provide this solution and we commend it for having accelerated its work and delivering its proposals. A global solution at OECD and G20 level will prevent proliferation of different national tax regimes on digital services”.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
