As part of the work by the OECD/G20 Inclusive Framework (IF) on BEPS relating to the tax challenges arising from the digitalisation of the economy, the OECD has been carrying out an economic analysis and impact assessment of the Pillar 1 and Pillar 2 proposals. A live webcast with experts from the OECD's Centre for Tax Policy and Administration and Economics Department will include a presentation of preliminary results on the revenue and investment effects of the proposals.
Register for the webcast at 9am eastern on Thursday, February 13th, at http://www.oecd.org/tax/beps/webcast-economic-analysis-impact-assessment-february-2020.htm
David Bradbury and his team will help you understand the data and methodologies for the economic analyses and impact assessments of Pillar 1 and Pillar 2 proposals, as well as the data and models’ capabilities and limitations.
Although there are significant limitations on the available data for such complex proposals and to evaluate those effects for 100+ countries, use of multiple data sources, both micro and macro data, fill in many of the gaps that would occur if using only one database.
The specific proposed tax rules have not been decided by the BEPS IF, but good modelers can build economic and fiscal models with capabilities of changing policy parameters to evaluate alternative proposals and also to do sensitivity analysis of key parameters. They will be ready to evaluate the economic and fiscal effects of a final proposed package when the IF makes its decisions.
I think you will be impressed with the preliminary analysis, albeit subject to available data limitations, but which will continue to be improved with additional input from individual countries’ finance ministries and outside groups, and and will be ready to evaluate the Inclusive Framework’s specific proposals later this year.
Tom Neubig