Global Tax Deal May Not Come Until October, OECD’s Gurria Says

Jose Angel Gurria, secretary-general of the Organization for Economic Cooperation and Development, reacts during a panel discussion at the Paris Forum of G20 finance ministers in Paris, France. (Photographer: Marlene Awaad/Bloomberg)

Global Tax Deal May Not Come Until October, OECD’s Gurria Says

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A full global deal to overhaul taxation rules and make multinationals pay more in countries where they operate may not be achieved until October, the chief of the Organization for Economic Cooperation and Development said Monday.

Speaking in Paris, Angel Gurria said a “180-degree change in the position of the U.S.” has accelerated the talks, making an outline of a deal possible at a meeting of Group of 20 finance officials in July. But some countries, including the U.S., may need to legislate before the matter can be completely settled.

Gurria’s comments provide a counterpoint to the sense of expectation building for agreement at the Group of Seven finance ministers meeting later this week, and the G-20 one the following month. Such gatherings are preludes to the push for a far broader consensus than just between those blocs in order to cement a new landscape for tax.

“The final package could be taken to October when there is another meeting of G-20 finance ministers and central bank governors, but all in time for the summit to give its blessing to the final deal and then to go into implementation mode,” Gurria said. “We have a deal in sight and hopefully it will happen this year.”

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