OECD: AI's Impact and What It All Means

Generated Title: The OECD's Tax Updates: Just Re-Arranging Deck Chairs on the Titanic?

Okay, so the OECD – those guys who think international policy is fixed with strongly worded memos – are patting themselves on the back for updating their Model Tax Convention. Apparently, remote work and natural resources are now… things. Groundbreaking.

Remote Work: Now Officially a Thing

Let's be real, the pandemic happened, everyone went remote, and now, now, the OECD is getting around to "clarifying" how cross-border "home office" arrangements are taxed. Give me a break. It's like discovering fire in 2025. They're acting like they're handing down tablets from Mount Sinai, when really, they’re just catching up to what every freelancer with a laptop already knows.

And this "certainty for employers and employees" they're selling? Don't buy it. Tax law is about as certain as the weather forecast. This is just more bureaucratic mumbo jumbo that’ll probably create more loopholes than it closes. I mean, are we really supposed to believe that some updated guidelines are going to prevent companies from stashing profits in tax havens? Seriously?

Resource Extraction: Finally Noticing the Developing World (Maybe)

Oh, and they’re also patting themselves on the back for addressing natural resource extraction. This “new alternative tax treaty provision” to ensure income from resource extraction is taxed where it occurs sounds… nice. But let’s not pretend this is some act of altruism. It's probably just a response to developing countries finally getting wise and demanding their share.

It's about time they addressed this. But will this actually help resource-endowed economies? Or will it just create more layers of complexity that benefit multinational corporations and their armies of lawyers? I'm not holding my breath.

AI and the OECD: Are They Even Paying Attention?

And while they're busy tweaking tax treaties, what about the real game-changer: AI? I saw they put out something about AI in Strategic Foresight, but let's be honest, is the OECD really equipped to handle the implications of AI on the global economy? Are they even asking the right questions?

Because I'm not seeing it. They're focused on "consistency in treaty interpretation" while AI is poised to rewrite the entire economic rulebook. It’s like focusing on perfecting the buggy whip as the first cars roll off the assembly line.

What happens when AI-driven automation decimates entire industries in OECD countries? What happens when AI creates entirely new forms of wealth that existing tax structures can't even comprehend? Are they even thinking about that?

Offcourse, the Hagstrom Report notes that ag groups are urging funding for OECD... but I'm not sure more money is the answer. Maybe a lobotomy so they forget all these old conventions and can actually focus on the future.

Re-Arranging Deck Chairs While the Iceberg Looms