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Insurers warn OECD tax proposals for digital business could result in significant legal uncertainty

While welcoming the Organisation for Economic Co-operation and Development’s (OECD) efforts to address taxation challenges that result from digitalisation, Insurance Europe believes that any adaptations should focus on aggressive base erosion and profit shifting (BEPS), rather than on challenging the existing international tax system.

However, the OECD’s initial proposals go far beyond the mere taxation of digital business models and would lead to fundamental changes in the existing international tax system.

The proposals are too vague at this stage and would result in significant legal uncertainty, increased administrative burdens for taxpayers and tax authorities and double taxation.

You can read Insurance Europe's full response to the OECD consultation here

Published 11 March 2019