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Archive for OECD Reports

OECD Countries Want A Reset On Taxes

OECD Report

According to the OECD, the COVID-19 pandemic has brought social and economic disruption worldwide, but is also providing governments with the opportunity to put economies on a more sustainable and inclusive growth path while addressing the underlying challenges, according to the OECD’s Going for Growth policy report.

Going for Growth 2021: Shaping a Vibrant Recovery analyses pre-existing weaknesses as well as those brought on by the pandemic, and offers policy makers country-specific advice to seize the opportunity for a fundamental reset.

Its recommendations provide a basis for G20 discussions on strategies to push forward a vibrant economic recovery and promote higher-quality growth.

“The pandemic is a painful reminder that the nature of our past growth was often unsustainable and left many people behind,” Mr Gurría said. “The recovery is an opportunity to set our policies right, to achieve growth that is stronger, equitable, sustainable and more resilient. And for this to happen, governments have to act now.”

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Very Interesting To Read What The Experts State At The OECD About The Economic Forecast In The U.S.

Interesting To Read What The Experts State At The OECD About The Economic Forecast In The U.S.

OECD Report December 2020: Economic Forecast Summary

The economy is recovering following the sharp fall in GDP and dramatic rise in the unemployment rate in the first half of 2020. Real GDP is anticipated to contract by 3.7% in 2020, before rising by 3.2% in 2021 and 3.5% in 2022. The unemployment rate will gradually fall, but will remain elevated compared with the pre-pandemic period. This reflects activity in some sectors, such as hospitality and transportation, continuing to be impacted by the pandemic and impediments to cross-sectoral labour reallocation. A general rollout of an effective vaccine in the latter half of 2021 will allow an easing of containment measures and strengthen confidence.

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OECD: Corporate Taxation And Investment Of Multinational Firms

OECD: Corporate Taxation And Investment Of Multinational Firms
This paper explores the effect of corporate taxes on the investment of multinational enterprises (MNEs), and whether this effect differs across MNE groups depending on their profitability rate. Firm-level analysis conducted on a cross-country panel of MNE entities confirms the earlier finding that MNE investment in a jurisdiction is negatively affected by effective corporate tax rate increases in that jurisdiction. The analysis also suggests that the tax sensitivity of MNE investment differs across entities belonging to different MNE groups, with a U-shape relationship between tax sensitivity and MNE group profitability.

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Combating Bribery Of Public Foreign Officials In International Business Transactions

OECD On Bribery Of Foreign Public Officials

The OECD Anti-Bribery Convention establishes legally binding standards to criminalize bribery of foreign officials in international business transactions and provides for a host of related measures that make this effective. It is the first and only international anti-corruption instrument focused on the ‘supply side’ of the bribery transaction.

The OECD booklet contains the official text and commentaries of the 1997 Convention, the 2009 Recommendation of the Council for further Combating Bribery, the 2009 Recommendation on the Tax Deductibility of Bribes to Foreign Public Officials and other related instruments:

Download the 50 page OECD PDF

Destined to strengthen the Convention, a review of the 2009 Recommendation is being conducted by the Working Group on Bribery and is scheduled for completion in 2020.

 

 

More Than 110 Countries Agree To Work Towards Digitalization Solution

OECD Report- 110 Countries Agree To Digitalization

More than 110 countries and jurisdictions agreed to review two key concepts of the international tax system, responding to a mandate from the G20 Finance Ministers to work on the implications of digitalisation for taxation.

The members of the OECD/G20 Inclusive Framework on BEPS are working towards a consensus-based solution by 2020, as set out in their Interim Report on the Tax Challenges Arising from Digitalisation.

Building on the 2015 BEPS Action 1 Report, the Interim Report includes an in-depth analysis of the changes to business models and value creation arising from digitalisation, and identifies characteristics that are frequently observed in certain highly digitalized business models. Describing the potential implications for the international tax rules, the Interim Report identifies the positions that different countries hold, which drive their approach to possible solutions. These approaches range from those countries that consider no action is needed, to those that consider there is a need for action that would take into account user contributions, through to others who consider that any changes should apply to the economy more broadly. The Interim Report lays the ground to move forward at the OECD towards a long-term multilateral solution in the next phase of work.

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