OECD Sets The Stage For Two-Pillar Tax Reform Revenue Estimates

As the international tax community seeks revenue estimates from the OECD’s two-pillar tax reform project, some finance ministries are playing their cards close to the vest. In the United States, Republican lawmakers have repeatedly sought pillar 1 revenue information from the Treasury Department, only to be rebuffed each time. Why is Treasury reluctant to share this data? It says it would be premature to release estimates.

“To our knowledge, no country has published interim data of its estimates of Pillar One reallocation, or provided such estimates to its parliament before Pillar One negotiations are complete, presumably because doing so could undermine that country’s national interests and its negotiating position,” Treasury said in a March 2022 letter. “We . . . remain committed to provide comprehensive estimates around these issues when doing so would not undermine leverage.”