MFA Comment Letter on OECD Global Anti-Base Erosion Proposal

On December 2, MFA submitted a comment letter to the OECD on its second consultation paper related to taxation in a digital economy.  The consultation paper sought industry feedback on the OECD’s Global Anti-Base Erosion (GloBE) proposal, which is part of its Pillar Two workstream.  The GLoBE proposal is intended to establish rules designed to ensure that the profits of multi-national operating businesses are subject to a minimum rate of tax by addressing structures that permit those businesses to shift profits from high-tax jurisdictions to low-tax jurisdictions.  MFA’s comment letter encouraged the OECD to clarify that investment funds and other asset management structures are not in scope of the Pillar Two proposal and encouraged the OECD to exclude asset managers from the proposal.