OECD: No deal on Digital Tax Risks Trade War



BBC News

The head of the Organisation for Economic Cooperation and Development has said countries must agree on an approach for taxing tech giants, or they risk a widespread trade war.

The warning from Angel Gurría comes as an increasing number of countries, including the UK, impose new levies on digital sales.

Last week, the US launched a probe of the taxes, saying they unfairly target American companies.

That process could lead to tariffs.

For more than a year, the OECD has been overseeing talks aimed at reaching a multilateral deal.

The US, home to internet giants such as Amazon, Google, and Facebook, has said it supports that process, but its position on the issue diverges significantly from the interests of other members.

Treasury Secretary Steven Mnuchin has said taxes should be based on income, not sales, and should not target a specific industry.

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