LONDON — Tensions over a digital tax may trigger a trade war that could potentially slash global GDP (gross domestic product) by over 1% every year, the OECD warned Monday.
The United States, France, the U.K. and Ireland — just to name a few nations involved in a long-running dispute — have fought over how to adapt the tax system to the new digital economy, where companies such as Apple, Facebook and Amazon have flourished. The debate has received even more attention in the wake of the coronavirus pandemic as tech giants have profited from stay-at-home orders.
The Organization for Economic Cooperation and Development (OECD) has warned that countries need to come to an agreement or risk damaging the global economy further.
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