U.S. Treasury Secretary Steven Mnuchin raised serious questions about OECD inter...
) to book revenues in low-tax countries like Ireland regardless where the paying customer lives.
The imbroglio threatened to deepen tensions between Washington and Europe over a U.S. threat to impose 100% tariffs on a raft of French products, including Champagne, cheese and handbags, over France’s 3% digital services tax. In a letter to Gurria dated Tuesday, Mnuchin said Washington supported the OECD’s drive to enact tax reforms, but worried that changing the rules as proposed could affect “longstanding pillars of the international tax system.”
The U.S. proposal caught OECD officials by surprise. In a letter to Mnuchin, Gurria said it was the first time such an idea had surfaced despite lengthy consultations.
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