Tax and the Digital Economy: Challenges and Proposals for Reform
Tax and the Digital Economy provides a detailed analysis of the impact of the digitalization process on tax policy, tax administration and taxpayers. The increasingly digitalized global economy is undermining the usefulness of many traditional tax concepts. In addition to the issues of double taxation and double non-taxation, important questions arise concerning the allocation of taxing rights in respect of income from cross-border digital transactions. This is the first book to analyse what changes are possible, necessary and feasible in order to forestall the unravelling of the existing international tax framework and to provide guidance on ways to adapt national tax systems to a digitalized world.
What’s in this book:
Focusing in turn on the legal framework, specific proposals for adapting tax concepts for the digital economy, types of transactions and administrative issues such as those around data protection and digital currencies, the expert contributors discuss such challenges to taxation as the following:
- the pervasiveness of intangible assets;
- new value creation models;
- the ascendance of the sharing economy and digital services;
- virtual currencies;
- the importance of user participation for digital platforms;
- cloud computing;
- the impact of Big Data on tax enforcement;
- virtual business presence; and
- the influence of robotization.
Throughout, the authors scrutinize proposals made by the Organisation for Economic Co-operation and Development (OECD), the EU and individual countries and their likely impact going forward. They also attend to the limits imposed on reform possibilities by public international law, EU law and constitutional law.
How this will help you:
It is generally acknowledged that there is a need to monitor how the digital transformation may be impacting value creation. This book is a key milestone towards developing a durable, long-term solution to the tax challenges posed by the digitalization of the economy. With its thorough scrutiny of proposals for a digital services tax and virtual permanent establishments, and its astute analysis of modern digital services taxation, it will quickly prove indispensable for tax practitioners and the international tax community more generally in understanding the challenges arising for tax policy from digitalization.
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Preface and Acknowledgements
The 2018 OECD Interim Report
The ‘Genuine Link’ Requirement for Source Taxation in Public International Law
EU and WTO Law Limits on Digital Business Taxation
Fairness of the Taxation of the Digital Economy
Tax Policy for the Digitalized Economy under Benjamin Franklin’s Rule for Decision-Making
Andrés Báez Moreno & Yariv Brauner
Equalization Taxes and the EU’s ‘Digital Services Tax’
Georg Kofler & Julia Sinnig
Digital Permanent Establishments on Its Way to Becoming a Reality? The EU Commission’s Proposal on Taxing ‘Significant Digital Presence’
Tax Treatment of Digital Currencies
Michael Tumpel & Johannes Kofler
Taxing Remote Digital Supplies
The Taxation of the Sharing Economy
Effective Taxation Versus Effective Data Protection?
Digitalization and the Future of National Tax Systems: Taxing Robots?
Big Data in Tax Collection and Enforcement