Rick Minor Quoted in Bloomberg Law on OECD Tax Deal, Advocates for Extended Time for Business to Provide Feedback

USCIB Vice President and International Tax Counsel Rick Minor was quoted in a Bloomberg Law article yesterday regarding the Department of Treasury’s handling of a complex Organization for Economic Cooperation and Development (OECD) tax treaty. Treasury is awaiting business input by December 11, with the deadline for the treaty set on December 31. This treaty would reallocate residual profits of big corporations to market jurisdictions under Pillar One of the two-section tax deal.

Minor was quoted as saying, “USCIB views it as essential for Inclusive Framework members, in-scope businesses, and other stakeholders to be given more time beyond the end of this calendar year to complete this important work.” This quote stems from a letter that was sent to Treasury on November 15.

Business has expressed concern that Treasury’s solicitation of feedback from stakeholders may be the administration’s attempt to buy more time for negotiations before any significant decision-making occurs by nations. This move also shifts pressure regarding the treaty’s success or failure away from negotiators and onto business. However, the comment period also sends the message that the U.S. is taking this treaty seriously, as doubts continue to exist about whether the negotiations will be fruitful.

The full article is available with a subscription to Bloomberg Tax and can be accessed here.

Business at OECD Launches Responsible Business Conduct Committee, Co-Chaired by USCIB Member Laura Chapman-Rubbo (Disney)

Laura Rubbo attends USCIB’s 2019 International Leadership Award Dinner
L-R: Peter Robinson (formerly USCIB), Laura Rubbo (The Walt Disney Company), Guy Ryder (formerly ILO), Terry McGraw (formerly USCIB & S&P Global)

Business at OECD (BIAC) launched the newly formed BIAC Responsible Business Conduct (RBC) Committee on November 8 in Paris. The rationale for establishing a dedicated RBC committee is rooted in the growing OECD RBC workstreams, which are expected to expand in the upcoming years. While the BIAC RBC Committee was previously housed under the same umbrella as the Investment Committee, close coordination between both committees will continue. In line with this, two previous vice-chairs of the Investment and RBC Committees now serve as the new co-chairs of the BIAC RBC committee: Laura Chapman-Rubbo from USCIB member The Walt Disney Company and Paul Noll from the Confederation of German Employers’ Associations (BDA).

USCIB was delighted to nominate Chapman-Rubbo as co-chair. She has extensive expertise in working with OECD matters, closely collaborating with BIAC on the review of upcoming OECD RBC guidance. As a leading voice in RBC topics, Chapman-Rubbo brings an American perspective, along with know-how from a worldwide transnational company to the table. USCIB members are committed to driving positive change while ensuring that American business interests remain represented at the OECD level.

“I am honored to co-chair this committee,” said Chapman-Rubbo. “We are building on decades of important work by BIAC, their member national business associations, and their member companies to advance responsible business conduct and the OECD’s Guidelines for Multinational Enterprises.”

The first BIAC RBC committee meeting was held on November 8 and now the committee is focused on a 2024 work plan and outreach.

USCIB Member Cristian Rodriguez-Chiffelle (BCG) Approved as Vice Chair for Newly-Formed BIAC Investment Committee 

Cristian Rodriguez-Chiffelle

Business at OECD’s (BIAC) Executive Board formally approved the nomination of USCIB member Cristian Rodriguez-Chiffelle (Boston Consulting Group) for Vice-Chair of the BIAC Investment Committee on November 7. 

 

Rodriguez-Chiffelle serves as senior advisor for Boston Consulting Group’s (BCG) Global Advantage and Public Sector practices. He has consulted with governments, firms and international organizations across multiple regions. He has extensive expertise in fields such as sustainable FDI strategies for renewable energy, investment attraction and promotion and the negotiation and implementation of trade agreements. His extensive experience has primarily focused on Latin American trade, climate policy and investment. 

 

Rodriguez-Chiffelle’s previous experience participating in the investment-related operations of international organizations and the Chilean government will be of great value when conveying business priorities to governments and OECD representatives as part of his new position. 

 

The BIAC Investment Committee is a newly independent committee, having previously been part of the Investment and Responsible Business Conduct Committee. It is primarily focused on challenges that companies are facing with respect to the international investment climate and aims to highlight the importance of appropriate investor safeguards, market openness and a level-playing field in global trade and investment. 

Annual OECD-USCIB International Tax Conference Zeroes in on Pillars One and Two

Lily Batchelder (Treasury)

Since 2021 when 140 countries agreed on a global tax deal, international tax policy discussions have concentrated intensely on Pillars One and Two, which focus on the reallocation of residual profits of the largest and most profitable Multinational Enterprises (MNEs) to market jurisdictions and a 15% global minimum tax, respectively.

USCIB’s annual International Tax Conference was no exception. Discussions on Pillars One and Two were the focus of the two-day tax conference, hosted alongside the OECD and Business at OECD (BIAC) on October 30-31 in Washington DC. Hundreds of industry leaders and practitioners including USCIB members, U.S. and foreign government tax officials and press gathered for the much-anticipated event, hosted by USCIB VP and International Tax Counsel Rick Minor.

Lily Batchelder, assistant secretary for tax policy at U.S. Department of Treasury, served as plenary speaker and provided a framework for the two-day conference and touched upon an important element—the multilateral work at the OECD in the tax policy space.

“Today, at the 16th annual Tax Conference of the USCIB, the question is not should the international tax system change,” said Batchelder. “We already know from close to 15 years of experience that the system has changed and returning to old rules is not a real tax solution. Instead, the question is how should the international tax system change in order to encourage global tax certainty and stability? In my view, our multilateral work at the OECD has been, and will continue to be, essential to finding answers to those questions.”

Batchelder’s comments were echoed by Michael Plowgian, deputy assistant secretary for international tax affairs at the U.S. Treasury Department, who spoke on the first panel, The International Tax Agenda. “The administration remains committed to implementing Pillars One and Two,” said Plowgian. “We believe it’s the best way to address the instability that we see in the international tax system.”

Rick Minor (USCIB)

The second day kicked off with panels on Pillar Two, discussing the implementation of the global minimum tax and improving global tax coordination, particularly relating to rule co-ordination and dispute prevention and resolution.

Beyond Pillars One and Two, experts also discussed other pressing issues such as addressing increased global mobility of workers, carbon mitigation approaches, tax certainty beyond the Pillars and the rationalization of other base erosion and profit shifting (BEPS) measures.

The conference was sponsored by USCIB. Corporate sponsors included EY, PwC, Amazon, Caplin & Drysdale, General Mills, KPMG, Baker McKenzie and ExxonMobil.

Other featured speakers included:

  • Alan McLean, Chair, BIAC Tax Committee and former Executive Vice President, Taxation and Controller, Shell International Limited, UK (retired)
  • Achim Pross, Deputy Director, OECD CTPA
  • Barbara Angus, Global Tax Policy Leader, Ernst & Young (EY)
  • Bob Hamilton, Commissioner of the Canada Revenue Agency; Chair of the FTA
  • Bob Stack, Managing Director, Washington National Tax, Deloitte Tax LLP
  • Brett Weaver, Partner, KPMG
  • Carolina Perez-Lopez, Vice President, Global Tax Planning and Tax Counsel, Johnson & Johnson
  • Carlos Eduardo Protto, Director of International Tax Relations, Ministry of Treasury, Argentina
  • Dani Rolfes, Partner in Charge, Washington National Tax, KPMG
  • Daniel Smith, Director, International Tax Planning & Policy, Alphabet
  • Hannah Hawkins, Principal, Washington National Tax, KPMG
  • Isaac Wood, Attorney-Advisor, Office of Tax Policy, U.S. Treasury
  • Jason Weinstein, Vice President, Tax, North America, Amazon
  • John Peterson, Acting Head of Division ICA, OECD CTPA
  • John Stowell, USCIB Tax Committee Chair, Head of Global Tax and International Financial Reporting, The Walt Disney Company
  • Josh Ruland, Principal, EY
  • Kevin Nichols, Head of Tax ESG, Tax Communications, and Tax Policy, Uber
  • Kyle Meng, Senior Economist, White House Council of Economic Advisers
  • Liz Stevens, Member, Caplin & Drysdale
  • Manal Corwin, Director, OECD CTPA
  • María José Garde, Director General of Taxation, Ministry of Finance, Spain
  • Mark Harris, Vice President and General Tax Counsel, The Coca-Cola Company
  • Mark Martin, Principal, Washington National Tax, KPMG
  • Marlene Nembhard-Parker, Co-Chair of the Inclusive Framework; Deputy Commissioner General, Legal Support Services – Tax Administration Jamaica
  • Marco Iuvinale, Director of European and International Tax Affairs, Italian Ministry of Economy and Finance
  • Mary Jones, Director, Benefits Taxation, Microsoft
  • Mike Williams, Director of Corporate Tax, HM Treasury
  • Nate Carden, Partner, Skadden
  • Nick Schulz, Director of Stakeholder Engagement and Senior Policy Advisor, ExxonMobil
  • Nicole Welch, Director, Treaty and Transfer Pricing Operations, LB&I, IRS
  • Pat Brown, Principal, Washington National Tax, PwC
  • Peter Blessing, Associate Chief Counsel (International) at the Internal Revenue Service
  • Rafic Barrage, Partner, Baker & McKenzie
  • Rick Minor, VP & International Tax Counsel, USCIB
  • Robert Cusmano, Senior Director, Global Tax Policy, Procter & Gamble
  • Silke Bruns, Director for International Taxes, Federal Ministry of Finance, Germany
  • Thomas Bettge, Senior Manager, Washington National Tax, KPMG
  • Tobias Appl, Partner, EY
  • Tom Roesser, Tax Policy Counsel, Microsoft
  • Tracee Fultz, Global Transfer Pricing Leader, EY
  • Whitney Baird, President & CEO, USCIB
  • Will Morris, Global Tax Policy Leader, PwC
  • Yah Fang Chiam, Deputy Commissioner, Business Group, Inland Revenue Authority of Singapore

The 17th annual OECD USCIB International Tax Conference will be held on June 24-25, 2024 in Washington DC.

USCIB Supports Joint Global Business Position on UN Treaty on Business and Human Rights

USCIB joins in support of the Global Joint Business Position on the Draft Legally Binding Instrument on Business and Human Right.

The position paper responds to fourth Draft of the Legally Binding Instrument, also referred to as the “UN Treaty on Business and Human Rights,” prepared as the basis for the Ninth Session of the Open-Ended Intergovernmental Working Group on Transnational Corporations and Other Business Enterprises with Respect to Human Rights (OEIGWG).

According to USCIB Director for Corporate Responsibility and Labor Affairs Ewa Staworzynska, the Joint Business Position is the result of extensive inputs from USCIB member companies, as well as the International Organization of Employers (IOE), BusinessEurope and Business and OECD (BIAC).

Since the beginning of the negotiations of the Treaty, there have been fundamental concerns, and these continue to persist based on the content in the fourth Draft.

“At the core, the Treaty fails to address the root causes of adverse human rights impacts, such as weak governance, weak rule of law, corruption, lack of development and high levels of informality,” said Staworzynska. “Further, it blurs the differentiated roles of States and business when it comes to human rights, it promotes extraterritorial jurisdiction, and it would create severe liability risks and legal uncertainty if it were to be adopted in its current form.”

USCIB is committed to advancing responsible business conduct and encourages governments to take into account the legal implications and the feasibility of implementation and further urges governments to ensure that the Treaty is aligned with the well-respected and widely supported UN Guiding Principles on Business and Human Rights.

The position paper can be accessed here.

Treasury’s Michael Plowgian Headlines Tax Webinar on OECD Multilateral Convention

Deputy Assistant Secretary of Treasury Michael Plowgian led a team of his Treasury Department colleagues, Elizabeth Bell, Chris Bello, and Huzefa Mun in an exclusive USCIB member tax webinar on October 20 on the draft text of the Multilateral Convention to Implement Amount A of Pillar One (MLC).

The draft text was released just on October 11 and followed the same day with the U.S. Treasury Department consultation request regarding the same.

The Treasury team was joined on the webinar panel by USCIB International Tax Counsel Rick Minor and USCIB Tax Committee Chair John Stowell, head of tax at The Walt Disney Company. Topics discussed were the mechanics of certain U.S.-driven provisions in the MLC, the progress of Amount B deliberations and the latest on the once and potentially future DST moratorium linked to the MLC.

“The webinar discussion was a good warmup to the OECD-USCIB Tax Conference on October 30-31,” said Minor.

USCIB Participates at Internet Governance Forum (IGF) in Kyoto, Hosts USCIB Foundation/BIAC Roundtable on AI 

Elizabeth Thomas Raynaud (OECD), Nicky Jackson Colaco (Roblox), Nicole Primmer (Business at OECD), Paula Bruening (Casentino Strategies), Barbara Wanner (USCIB), Liz Thomas (Microsoft), Maylis Berviller (BIAC), Nan Schechter (USCIB), Minami Kakuda (BIAC)

USCIB attended the 18th Internet Governance Forum (IGF) in Kyoto earlier this month. The Forum featured the theme of “The Internet We Want – Empowering All People” and was headlined by notable speakers such as Japanese Prime Minister Fumio Kishida. USCIB Vice President for ICT Policy Barbara Wanner was on the ground, along with USCIB Policy Associate Nan Schecter.   

Wanner coordinated USCIB members at the IGF including Amazon, Disney, EY, Google, Lego, Meta, Microsoft, Netflix and Verisign. USCIB members offered insights and expertise throughout the week in main sessions, workshops, and the “hallway meetings” that participants have come to value from the IGF. USCIB also participated in conversations on critical policy topics, including responsible AI governance, the upcoming WSIS+20 review to renew and reaffirm the IGF mandate, negotiations for a UN Cybercrime Convention that will prioritize law enforcement and stifle criminal activity and the Declaration for the Future of the Internet. 

A joint project between Business at OECD (BIAC) and The USCIB Foundation, entitled “Data Privacy in the Metaverse and Immersive Technologies,” was also spotlighted at two IGF side events. 

On October 9, USCIB members and stakeholders convened at a roundtable to discuss data governance issues related to emerging metaverse and immersive technologies. The conversation focused on the Asia Pacific region and highlighted how companies such as NEC and Toyota are employing metaverse training, content development and research funding to promote growth in the region of the metaverse. 

On October 11, Wanner moderated the panel “Creating virtual worlds? A case for innovation and policy that protects users and fosters trust.” Part of the Nikkei Digital Forum, this premier event featured speakers from the OECD, Microsoft, Roblox, and the Japan-based Center for International Economic Collaboration who discussed the status of development and adoption of immersive technologies, as well as necessary policy considerations for its deployment. 

“I want to thank the Government of Japan for hosting such an important event and for highlighting AI governance as the dominant topic for the 18th Forum,” said Wanner. She continued, “IGF as a whole, as well as the joint events between The USCIB Foundation and BIAC, allowed our members to share their technology priorities and enabled us to advocate for balanced policy and regulatory approaches to AI and the Internet.” 

Clark Promotes a Permanent Extension of the E-Commerce Moratorium at OECD Global Forum on Trade

Alice Slayton Clark speaks at the OECD Global Forum on Trade

This week, USCIB Vice President for International Investment and Trade Policy Alice Slayton Clark is at the OECD Global Forum on Trade in Paris, which is focused this year on Making Digital Trade Work for All.

Clark spoke on the panel dedicated to the World Trade Organization (WTO) “e-commerce moratorium,” a commitment by WTO members over the past 25 years to refrain from imposing customs duties on electronic transmissions.  The moratorium is up for renewal at the next WTO ministerial conference in February 2024, and USCIB as well as Business at OECD members are urgently pressing for extension.

Clark not only advocated permanent renewal, but she outlined the extensive benefits the moratorium has delivered in terms of growing the digital economy, enabling micro-small and medium sized enterprise (MSMEs) to thrive in the global market place particularly during times of global challenge, facilitating the flow of information and promoting integration of developing countries in the global economy.

“A few countries are vocally questioning support for the moratorium, seeking to  increase revenues achieved by imposing new duties; to erect national walls around digital data; and to safeguard regulatory flexibility in the digital space,” said Clark. “Unfortunately, allowing the moratorium to expire would raise tariffs, destabilize global digital trade, raise costs for consumers and pose unnecessary barriers to MSMEs seeking to navigate the global marketplace,” Clark asserted.  Importantly she pointed out that an end to the moratorium would upend the mission of the WTO to facilitate trade and undermine the very fabric of a multilateral trading system already under intense geopolitical strain – a enormous setback for the upcoming 13th WTO ministerial conference in Abu Dhabi.

Clark was in Geneva last month meeting with foreign missions at the WTO and advocating for the moratorium renewal along with a high standard outcome for the Joint Statement Initiative negotiations on E-commerce. These priorities are well supported through evidence-research in a new OECD paper, “Key Issues in Digital Trade,” released at the Global Trade Forum this week.

The Global Trade Forum is an annual OECD event, gathering OECD and non-OECD policymakers, international organizations, industry and academia to address pressing issues concerning the economy. Panelists also addressed issues relating to inclusive trade, how to avoid digital fragmentation, how digital trade can facilitate sustainability, cross border data flows and data localization and the way forward for MC13.

OECD, BIAC and USCIB Meet to Discuss Trade Strategy, Anti-Illicit Trade

L-R: David Luna (Business at OECD & USCIB), Megan Giblin (USCIB), Susan Fridy (OECD), Piotr Stryszowski (OECD)

The USCIB Anti-Illicit Trade Committee (AITC) hosted a joint event with the OECD and Business at OECD’s (BIAC) Anti-Illicit Trade Expert Group (AITEG) at the OECD Washington Center earlier this month. The meeting included participants from USCIB member companies, other BIAC National Federations and their members, as well as OECD Member Countries.

According to USCIB Senior Director for Customs and Trade Facilitation Megan Giblin, who manages the USCIB AITC, the meeting focused on the introduction of new BIAC AITEG Vice Chairs—Susan Wilson (Intel) and Monica Ramirez (AB In-Bev). It also provided an opportunity for participants to hear about OECD updates, including the transition of the Countering Illicit Trade workstream to the Trade Committee, OECD Trade Strategy, Free Trade Zones (FTZs) and afforded the opportunity for an informal intersessional discussion on a recent Informal Expert Group, which is working on the project, The Role of E-commerce Platforms in Illicit Trade in Fakes, that met in Sofia, Bulgaria.

OECD Senior Economist Piotr Stryszowski provided updates regarding the ongoing work programs of the OECD Working Party on Countering Illicit Trade (WP-CIT), including efforts to suppress illicit trade through increased transparency and analysis of country-specific impacts. In addition, USCIB and other BIAC network members and OECD member countries’ delegates received updates regarding the AITEG’s recent activities and future objectives with regards to the OECD work on enhancing evidence and gauging best practices to address the illicit trade challenges in e-commerce.

“Through our vibrant partnership with the Business at OECD AITEG and the OECD’s WP-CIT, we are committed to work with OECD Member Countries to counter the harms caused by dangerous and illicit goods that have serious effects on our environment, workforce, innovation, and the health, safety and security of our people,” said USCIB Anti-Illicit Trade Committee and BIAC AITEG Chair David Luna. “As the WP-CIT advances this important work within the OECD Trade Committee, we must build on these efforts, and chart it to greater policy heights and action-oriented initiatives, projects and cross-sectoral collaborations, using holistic, whole-of-society approaches.”

The next meeting of the E-Commerce Informal Expert Working Group will take place in Washington, DC, the week of October 9, 2023.

USCIB Welcomes New Leadership at Business at OECD

USCIB extends its hearty congratulations to the newly appointed policy group leadership at Business at OECD (BIAC), including representatives from many USCIB member companies:

Sahra English from Citi will serve as vice chair of the Finance Committee at BIAC. At Citi, English is responsible for policy development and advocacy strategy on a broad range of international trade and investment issues, and has ample experience in strategic communications, public policy and global business administration.

The BIAC Finance Committee contributes private sector expertise and perspectives to OECD finance-related activities, including its work to support the G20, in order to develop a strong and sustainable global financial system.

Susan Wilson from Intel Corp. will serve as a vice chair of the BIAC Anti-Illicit Trade Expert Group (AITEG). At Intel, Wilson serves as director for Intellectual Property Policy. Wilson has extensive experience in intellectual property policy in both the public and private sectors, having had a 31-year career in public service.

Also appointed as a vice chair of the AITEG is Monica Ramirez from AB In-Bev. At AB In-Bev, Ramirez serves as global director for Corporate Affairs. Ramirez’s work in fighting illicit trade spans more than twelve years and she has played a key role in developing and promoting markets globally.

The AITEG, which is composed of BIAC and BIAC network participants, supports the evidence-based work of the OECD on countering illicit trade. Previously, this work was under the Task Force for Countering Illicit Trade (TF-CIT), which is transitioning to a Working Party of the OECD Trade Committee. The Group provides business leadership and market insights on OECD policy drafts in order to address illicit activities.

Finally, USCIB Vice President for International Investment and Trade Policy Alice Slayton Clark will serve as vice chair of the BIAC Trade Committee. Clark brings with her extensive experience in trade policy, having worked in a number of international law firms and consulting practices, as well as on Capitol Hill.

“We are thrilled that BIAC acknowledges the value and expertise of our members and staff and has recognized their commitment to global policy making and multilateralism by appointing them in these leadership positions,” said USCIB President and CEO Peter Robinson.

More information on Business at OECD (BIAC).