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Global Deal Would Target Digital, Other Unilateral Taxes

July 13, 2022, 8:45 AM

A footnote buried deep in a progress report on the OECD-led global tax project gives a hint as to how the UK’s controversial diverted profits tax and similar measures could be hobbled by the new deal.

The 2021 global tax deal included an agreement to reallocate a portion of the largest multinationals’ profits, known as Pillar One, Amount A. As part of the pact, countries said they would drop digital services taxes and similar measures.

In Monday’s report, the OECD said countries would produce a “definitive list” of the measures that must be withdrawn under Pillar One—which could include ...