Business Roundtable advises OECD on tax challenges

The Business Roundtable is encouraging the Organization for Economic Co-operation and Development (OECD) to avoid creating barriers to cross-border investment as it considers changes to certain international tax rules.

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The OECD — an international organization that works to promote better economic policies — is currently working on a project called “Program of Work to Develop a Consensus Solution to the Tax Challenges Arising from the Digitalization of the Economy.”

The Business Roundtable — an association of CEOs created to promote a thriving U.S. economy — is encouraging the OECD to adhere to sound principles in its deliberations. One, they ask for rules that have no double taxation; effective dispute resolution; minimal changes to profit allocation and rules on the right to tax; and treatment of Global Intangible Low-Taxed Income as a compliant minimum tax.

“A reliable and consistent international tax system is essential to the cross-border investment that expands opportunity for workers and creates sustained economic growth,” said Gregory Hayes, chairman and CEO of United Technologies Corp. and chair of the Business Roundtable Tax and Fiscal Policy Committee. “Business Roundtable favors the OECD’s multilateral approach to developing and updating these rules and looks forward to working with the OECD and other policymakers toward principles-based solutions.”