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Harry's impression: OECD to tax tech giants

10/30/2019


The Organization for Economic Co-operation and Development (OECD) announced a proposal on 9 October to prevent large digital groups such as Facebook, Apple, Amazon, Netflix and Google from shifting profits around the world in order to minimize taxes. The aim is to create a new and stable international tax system because “the current rules dating back to the 1920s are no longer sufficient to ensure a fair allocation of taxing right in an increasingly globalized world,” according to the OECD. The proposed changes will target digital giants with global turnover of more than US$1.23 billion. Tax experts and businesses, such as Amazon, welcomed the move, saying it was “an important step forward.”