To ask the Chancellor of the Exchequer, what additional funding will be required by (a) his Department and (b) the OECD to ensure monitoring and compliance with the proposed Pillar 2 rules of BEPS 2.0.
2 March 2022
The Government is glad that on 8 October 2021 more than 130 countries reached agreement on a Two-Pillar Solution to the tax challenges arising from the digitalisation of the economy.
As per the detailed implementation plan set out in the October 2021 statement, the aim is that both Pillar 1 and Pillar 2 will be implemented and effective by 2023. However, we cannot comment on the Organisation for Economic Co-operation and Development’s funding requirements in this respect.
As part of the implementation process, both Pillars will be subject to the standard tax policymaking process, with their impacts formally assessed through the Office for Budget Responsibility’s forecast process.
Monitoring and compliance will be handled by HMRC, utilising their departmental budget allocated as part of the Spending Review 2021.