On November 11, 2019, TEI filed comments with the OECD Secretariat regarding its proposed "unified approach" to "Pillar One" of the tax challenges of the digitalization of the economy. TEI's comments included the need for (i) the withdrawal of unilateral measures after multilateral agreement on the approach, (ii) a binding multilateral dispute resolution mechanism; and (iii) reliance on taxpayer consolidated financial statements for purposes of the approach. TEI also recommended only a multinational group’s parent company jurisdiction should be permitted to audit "Amount A" under the unified approach.
TEI’s comments were prepared under the aegis of the Institute’s European Direct Tax Committee, whose co-chairs are Kris Bodson of Johnson & Johnson and Giles Parsons. Benjamin R. Shreck, TEI Tax Counsel, assisted in preparation of the Institute’s comments.