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The challenge of taxing digital business

Scaled back digital tax plans leave local jurisdictions to fill in the gaps

The Organisation for Economic Co-operation and Development's (OECD'S) latest proposals on taxing digital business pull back from the radical roadmap put forward in May to something much closer to the January policy note by proposing a modified residual profit split with benchmarking of routine profits. The G20 finance ministers subsequently welcomed progress and reaffirmed their commitment to seeking a consensus-based solution by the end of 2020.