The 137-country effort to redefine multinational firms’ tax obligations now aims to reach an agreement by mid-2021; the original deadline was the end of this year. The group said “the COVID-19 pandemic and political differences” had slowed negotiations over the new framework, which is designed to tax an increasing share of companies’ revenues in the countries where they earn it, rather than where they’re headquartered. (The Logic)

Talking point: If they can’t get a worldwide deal, the OECD warned, governments will impose their own digital-services taxes, sparking trade disputes that could combine to cut global GDP by more than one per cent annually. In Canada, the federal Liberals’ throne speech last month promised to target “corporate tax avoidance by digital giants.” The party’s 2019 election platform proposed a three per cent levy on revenue from online advertising and user data for firms making at least $40 million and $1 billion in Canadian and total revenue, respectively—a stopgap pending an OECD consensus. Finance Minister Chrystia Freeland’s office did not directly answer The Logic’s questions about whether the government plans to introduce the measure in the upcoming budget. “Digital taxation is a global challenge, and we will continue to work closely with the OECD to ensure that multinational tech giants pay their fair share,” said spokesperson Katherine Cuplinskas.