2026

Sheppard argues the OECD’s “side-by-side” safe harbor is an imperfect near-term fix for U.S. multinationals because it does not eliminate QDMTT exposure and may not meaningfully reduce ongoing Pillar 2 compliance. Until countries actually enact and implement the law, U.S. groups may still need to book and compute current IIR/UTPR exposure for financial reporting purposes. The piece also flags structural frictions, including the lack of a QDMTT “push-down” and continued reliance on complex book-income adjustments and elections, suggesting the safe harbors are a band-aid on a flawed framework. 

Herzfeld argues that even as governments negotiate formal fixes like the Pillar 2 side-by-side safe harbor, many multinationals face opaque foreign audit practices that operate more like “pay-to-play” pressure than predictable rule-of-law enforcement. Herzfeld critiques OECD peer reviews for failing to identify real barriers to MAP and highlights the need for tougher enforcement and penalty tools in jurisdictions such as France, Italy, Mexico, and Australia. Herzfeld suggests responses including enhanced U.S. disclosure of foreign audit activity and a more reality-based peer review that incorporates taxpayer experience. 

The European Commission opened infringement proceedings against 14 EU member states for failing to fully transpose DAC8 (cryptoasset tax transparency) and/or DAC9 (pillar 2 reporting) by the December 31, 2025 deadline. The action underscores the EU’s growing emphasis on enforcement of tax transparency and global minimum tax reporting as core elements of its anti–tax avoidance agenda. The article focuses on uneven national implementation of pillar 2–related obligations, with potential escalation to the Court of Justice if member states do not respond satisfactorily.

Busefi writes that Libya largely ignores the usual permanent establishment (PE) concept and instead taxes foreign businesses based on a simple source link. For cross-border service providers and investors, PE planning won’t protect you, and the real risk shifts to withholding, counterparty compliance, and messy treaty conflicts with OECD-style PE rules. Busefi notes Libya has strengthened enforcement by removing limitation periods for unpaid tax recovery, creating an effectively open-ended audit window and signaling a broader drift toward source-based taxation for remote/digital services.

An Amsterdam appeals court ruled that Uber drivers can qualify as entrepreneurs rather than employees, overturning a lower court decision that would have imposed retroactive employment obligations on Uber. The ruling emphasizes individual drivers’ degree of entrepreneurship and leaves enforcement of misclassification rules largely to tax authorities.