International review for July 2021

Historic agreement on international tax reform

Following on from last month’s G7 announcement the big tax news this month is the historic worldwide agreement on international tax reform. At the time of writing 132 countries (out of the 139 members of the ‘Inclusive Framework’ or ‘IF’) have signed up to the principles of the OECD/G20’s ‘BEPS 2.0’ programme. Some details remain to be established but the overarching framework resolves (or at least sidesteps) a lot of the major issues identified during consultations earlier this year. The re-energised US involvement is prominently reflected in the solutions. So too is the consensus-building needed to bring more countries including developing countries onside. We now have a broad approach that suits...