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Earlier this week, Steven Mnuchin, the U.S. treasury secretary, wrote a letter to France, the U.K., Italy and Spain informing them that Washington was pulling out of the digital tax talks.
“It’s a very bad message. All the more so because digital companies have benefited, as a whole, from this health crisis,” Pascal Saint-Amans told French newspaper Les Echos. “What is at stake is nothing less than achieving more tax justice.”
The U.S. move came out of the blue and it was unclear whether the OECD would be able to find a global tax deal this year, added Saint-Amans.
The G20 finance ministers are due to meet in July, which should provide more clarity on the situation.
“But given the American election context, it is hard to imagine concluding a multilateral agreement before the election. After the November election, anything is possible. Whether Donald Trump or Joe Biden is elected,” Saint-Amans said.