OECD weaves net to stop Google, Facebook and Netflix from shifting profit

Digital companies such as Facebook, Google, and Netflix will soon find it difficult to shift profits to low- or no-tax jurisdictions, with the Organization of Economic Cooperation and Development (OECD) proposing measures to ensure they pay a minimum level of tax.

The Paris-headquartered organisation on Friday released a consultation paper proposing rules that would provide jurisdiction with a right to tax back where other jurisdictions have not exercised their primary taxing rights or the payment is otherwise subject to low levels of effective taxation.

India has been leading the global effort to rework the traditional international tax system to make digital firms pay taxes regardless of their physical presence or measured profits in a country.