Dispute Resolution Under OECD's "Pillar Two" 15% Global Minimum Tax Remains Unclear
In October 2020, the Organization for Economic Co-operation and Development ("OECD") Secretariat released a report addressing its "Pillar Two" blueprint for an overhaul of the international tax system. Pillar Two provides for a minimum tax of at least 15% on the earnings of qualified multinationals in each of the jurisdictions where they operate. While the Pillar Two rules remain something of a work in progress, they are, given they have already been adopted in several jurisdictions, a business reality. It is clear that this regime, when fully enacted, will likely give rise to complex multijurisdictional disputes.
This White Paper thus sets out best practices multinationals should adopt both in anticipation of, and to avoid, such disputes.
