Tech Coalition Wants Multilateral Tax Agreement for Digital Services

World leaders should commit to pursuing a multilateral approach on tax policy for digital services and avoid unilateral measures (see 1908190043), a tech industry coalition told member countries attending the G7 Leaders’ Summit, which begins Saturday. The Internet Association, Information Technology Industry Council, ACT|The App Association, BSA|The Software Alliance, Computer & Communications Industry Association and various Japanese trade groups signed. They recommended leaders oppose forced disclosure of source code, algorithms, encryption keys or other sensitive data as a “condition of doing business.” They recommend leaders quickly agree on the World Trade Organization joint statement initiative on e-commerce and permanently implement a WTO moratorium on customs duties on electronic transmissions. The group seeks “open format and machine-readable data sets to foster innovation and competitiveness” in artificial intelligence technologies and to “enhance and generate business opportunities for small and medium-sized enterprises.” France's new digital sales tax, retroactive to Jan. 1, has attracted much skepticism from U.S. tech; the country's embassy hasn't commented.