OECD POSTPONES TAX RULES

The Organization for Economic Cooperation and Development on Monday abandoned its target of reaching an agreement by year-end on international taxation rules to prevent tax evasion mainly by information technology giants, Jiji Press reported.

The OECD failed to finalize rules on allocation of taxable profits earned by large-scale multinational companies. It now aims to strike the agreement by mid-2021.

On Monday, the organization released a blueprint for its future discussions.

The blueprint will be reported at Wednesday's meeting of finance ministers and central bank heads from the Group of 20 advanced and emerging economies. The OECD will hear opinions from multinational businesses in January next year.

In the absence of debates in person amid the novel coronavirus pandemic, the OECD could not find a point of compromise between the United States, which hosts such IT giants as Google LLC and Apple Inc., and Europe, which seeks to strengthen the taxation of such companies.