Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Answer of 20 April 2021 to Question 178895, whether his Department has conducted internally a detailed impact assessment of the potential effects of implementing Pillar 2 of the Organisation for Economic Co-Operation and Development’s Base Erosion and Profit Shifting (BEPS) framework.

It is a UK priority to reach a comprehensive two-pillar solution addressing the tax challenges of digitalisation.

The details of a final agreement, including on the exact framework for implementation, are still subject to international negotiation.

If a political agreement is reached and both pillars are implemented in the UK, they would be subject to standard tax policymaking process.

As per that process, significant tax measures are legislated for in parliament, with their impacts formally assessed through the OBR forecast process.

This will include legislation in the relevant Finance Bill, with impacts set out in a Tax Information and Impact Note upon the introduction of the legislation.