Recommendation 15

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 amount that their Digital Services Tax payments exceeded what they would have paid under Pillar One during the ‘transition’ years of 2022 and 2023.47 It also the case that the tax does not seem to have had any observable impact on businesses to date.48 HMRC is not separately measuring the specific impact on UK-based businesses.49 39 Q 19 40 Q 105 41 Qq 22, 23, 103, 104 42 Qq 44, 91 43 Evidence submitted by the Chartered Institute of Taxation 44 Qq 24, 25 45 Qq 26, 27 46 Q 90; Evidence submitted by the Expedia Group, 47 Qq 81, 83; C&AG’s Report, para 15 48 Qq 31–33 49 Q 35 The Digital Services Tax 13 Business’ compliance with the Digital Services Tax