TPED has provided comments on the OECD Public Consultation Documentation named “Reports on the Pillar One and Pillar Two Blueprints published on 12 October 2020”.
The OECD Paper already acknowledges that Amount B may vary by « industry and/or region ». By extrapolating the results of our scientific study, we recommend the OECD to consider:
- Adding country risk as a segmentation factor of Amount B,
- Acknowledging a higher Amount B in riskier emerging/developing countries than in less-risky developed countries,
- Determining Amount B, in the absence of local/regional comparables, by reference to comparables available in countries of the same risk level,
- Alternatively, applying country risk adjustments from comparables from developed countries to derive Amount B in emerging/developing countries, where comparables are lacking.
Our comments leverage from the work performed, on the subject matter. TPED that has partnered with Prof. dr. Bert Steens, full professor at the School of Business and Economics of Vrije Universiteit (VU) Amsterdam, Prof. Christof Beuselinck from IESEG School of Management and LEM France, and Prof. Matthias Petutschnig, from WU – Vienna University of Business and Economics, all members of TPED. TPED received modelling and statistical support from TP qube, a modelling and statistical firm.