EU to act alone on digital tax if global deal fails

The European Union will seek its own solution to taxing digital multinationals if OECD and G20 attempts to reform the global corporate tax system fail to produce any results, according to incoming EU commissioners.

“If no effective agreement can be reached by the end of 2020, the EU should be willing to act alone” on a digital tax, said the incoming commission’s vice president, Margrethe Vestager, who will be responsible for digital policy and competition.

In written answers to EU lawmakers published on 27 Sept., the commissioner-designate for taxation, Paolo Gentiloni, said he would seek to prevent individual EU governments from being able to veto decisions on tax matters, which are the domain of the member and require unanimity under EU rules.