European countries aim to continue digital tax talks

In response to the reported US withdrawal from negotiations with European countries over new international tax rules on digital firms James Ross partner at law firm McDermott Will & Emery said: ‘It is not altogether surprising that the US has withdrawn from the pillar 1 discussions. 

‘The main focus of this strand was the taxation of the digital economy; and the US has long suspected that it was a “land grab” by European and certain other larger countries – an attempt to assert the right to tax profits that they viewed as properly taxable in the US.

‘However the pillar 2 discussions about a global minimum tax regime are more significant and must continue – the OECD is clear that this would be the greater money-generator for tax authorities.’

Mr Ross said that digital taxes were not expected to raise much revenue and suggested Europeans governments are sticking by...