OECD's digital economy report highlights divergent views, sets deadline of 2020 for consensus-based solution

OECD's Tax Challenges Arising from Digitalisation – Interim Report 2018 (the Interim Report) released a few minutes ago acknowledges 'divergent views' on taxation approach and highlights that countries will work towards a consensus-based solution; The Interim Report notes that there is no consensus on the merits of, or need for, interim measures, and does not make a recommendation for their introduction; The Interim Report agreed by the more than 110 members of the Inclusive Framework  outlines a number of areas where there are clear differences of view among the countries, including over the need for future reform of the international tax system; The Interim Report  provides a sense of direction that reflects the commitment of the Inclusive Framework members to work towards a consensus-based, global solution on these matters;  The Interim report sets the goal of producing a final report in 2020, with an update to the G20 in 2019; The Interim Report notes that the "members agreed to undertake a coherent and concurrent review of the “nexus” and “profit allocation” rules - fundamental concepts relating to the allocation of taxing rights between jurisdictions and the determination of the relevant share of the multinational enterprise’s profits that will be subject to taxation in a given jurisdiction";  The Interim Report discusses interim measures that some countries have indicated they would implement, believing that there is a strong imperative to act quickly; The Interim Report specifically considers an interim measure in the form of an 'excise tax' on the supply of certain e-services within their jurisdiction that would apply to the gross consideration paid for the supply of such e-services; The Inclusive Framework’s Task Force on the Digital Economy will meet next in July 2018; The report cites  India has adopted rules for the VAT treatment of B2C supplies of services and intangibles by foreign suppliers in accordance with the OECD International VAT/GST Guidelines; The Interim report also describes in details India's  Significant Economic Presence based taxation, Equalisation levy & cites Bangalore ITAT ruling on  “virtual service PE”