Comments and Recommendations OECD Public Consultation Document Secretariat Proposal for a 'Unified Approach' under Pillar One

9 Pages Posted: 27 Nov 2019

See all articles by William Byrnes

William Byrnes

Texas A&M University School of Law

Date Written: November 12, 2019

Abstract

A withholding based system will not be trapped in the tar pit of formation and implementation in the development of a new international tax regime, thereafter mired in the lack of institutional knowledge and capacity of resources for audit and MAP. A withholding based system offers a contrasted simplicity in relation to its implementation, including: (a) better procedural certainty for taxpayer and tax authority based upon current withholding regimes for services, (b) better revenue estimation for tax authorities, (c) less complex and expensive audits by tax authorities of taxpayers, (d) better tax risk management for taxpayers, (e) an established procedural system for relief of double taxation, and finally, (f) less cause for requiring MAP. Among proposals most likely to congeal into a uniform approach by March 2020, a withholding based system already has numerous adherents representing various economic strata.

Thus, rather than running away from a withholding based system into a ‘brave new world’, the OECD should embrace it and shape its current contours of definitional income and source issues and range of rates. Thereafter, the respective OECD and UN committees may leverage economic theory and regulatory impact analyses, as was done in 1923, to modulate the withholding based system via the inclusive process of the OECD and UN MTCs while working within the context of the ALP bedrock of the OECD and UN TPGs to address Article 7 and Article 9 allocation issues resulting from intangible-based residual.

Keywords: digital, tax, international tax, transfer pricing, OECD, ecommerce

JEL Classification: K34, E22, F23, H25, H26

Suggested Citation

Byrnes, IV, William H., Comments and Recommendations OECD Public Consultation Document Secretariat Proposal for a 'Unified Approach' under Pillar One (November 12, 2019). Available at SSRN: https://ssrn.com/abstract=3487236 or http://dx.doi.org/10.2139/ssrn.3487236

William H. Byrnes, IV (Contact Author)

Texas A&M University School of Law ( email )

1515 Commerce St.
Fort Worth, TX Texas 76102
United States
(817) 212-3969 (Phone)

HOME PAGE: http://www.linkedin.com/in/williambyrnes/

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