Global plan aims to better tax digital business

10/09/2019

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Sylvie Corbet | Associated Press

PARIS (AP) — A global economic body has proposed overhauling the way multinationals – particularly tech giants – are taxed to make sure they pay their fair share in countries where they do significant business.

The plan from the Paris-based the Organization for Economic Cooperation and Development, which advises 134 countries, comes after France and the United States agreed in August to find a way to better tax digital businesses by mid-2020.

The proposal, which applies to multinationals in all sectors, would re-allocate some tax revenue to countries where big companies like Google, Facebook, Amazon and Apple “have significant consumer-facing activities and generate their profits,” the OECD said.