Economics
EU Open to Prolonged Digital Tax Talks to Avoid Trade War
- OECD talks not moving as quickly as hoped, EU official says
- U.S. elections make tax agreement difficult before year end
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The European Union may delay digital tax proposals to give countries move time to hammer out a deal and avert a transatlantic trade war, a top official from the bloc said.
The European Commission had previously said it would table a proposal for digital taxation at the end of 2020 in the event of a failure of international talks hosted by the OECD. But disruption from the coronavirus and objections from the U.S. have delayed the process, making agreement before U.S. elections in November very unlikely, the commission’s director general for tax, Benjamin Angel, told a European Parliament hearing Monday.