Letter on OECD Proposal on Taxing Rights in a Digital Economy
On November 12, MFA submitted a comment letter to the OECD on its first consultation paper related to taxation in a digital economy. The consultation paper sought industry feedback on the allocation of taxing rights fairly among countries to address the tax challenges of the digitalization of the economy and that avoids double taxation or distorting investment activities. In our letter, we explained why the investment funds and the asset management industry do not raise the policy concerns underlying the OECD’s Pillar One project. Accordingly, we encouragee the OECD to consider a broad-based exemption from Pillar One for the financial services industry that includes the asset management industry or, at a minimum, provide an exemption for the asset management industry.