Forty-Fourth Report - The Digital Services Tax

Select Committee
Public Accounts Committee HC 732 5 April 2023
Report Status Government responded
Conclusions & Recommendations 20 items (4 recs)
Source View on Parliament website
Government Response (AI assessment · 19 of 20 classified)
Accepted 9
Acknowledged 7
Not Addressed 2
Rejected 1
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Forty fourth report from Session 2022-23 · published 27 Jun 2023
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Recommendations & Conclusions

3 results
5 Recommendation Not Addressed
There is a significant risk that the Digital Services Tax may require extension beyond its...
Recommendation
There is a significant risk that the Digital Services Tax may require extension beyond its intended lifespan, and that this could prompt changes in taxpayer behaviour. Should the OECD reforms be delayed beyond 2024, the Government is required by law … Read more
Government Response Summary
The government response focuses on Department for Business and Trade efforts to recoup local authority grant payments made in error in the first wave of Covid support schemes, but it does not address the need for HMRC to develop a contingency plan for the potential extension of the Digital Services Tax and a robust process for addressing non-cooperation with its compliance regime.
HM Treasury
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10 Conclusion Not Addressed
Pillar One’s scope will differ from that of the Digital Services Tax.
Conclusion
Pillar One’s scope will differ from that of the Digital Services Tax. First, it will be a tax on profits rather than revenues. Second, it will apply to a much broader range of activities as it is not simply aimed … Read more
Government Response Summary
The government's response outlines the scope and aims for finalising Pillar One's Amount A and B rules in 2023, without directly addressing the committee's observations on how DST experience will inform Pillar One implementation.
HM Treasury
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15 Conclusion
As long as Pillar One is introduced at some point, these issues will be partly...
Conclusion
As long as Pillar One is introduced at some point, these issues will be partly offset by the fact that those businesses paying Digital Services Tax and Pillar One will be able to reduce their Corporation Tax payments by the … Read more
HM Treasury
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