How to Tax the Digital Economy?

Altenburger, Peter and Czajkowski, Joseph (2020) How to Tax the Digital Economy? Novità fiscali, 2020 (4). pp. 208-214. ISSN 2235-4573


In the context of its Base Erosion and Profit Shifting (BEPS) project, the Organization for Economic Co-Operation and Development (OECD) has estimated that the loss of tax revenues from corporate tax planning strategies that “shift” profits from higher-tax jurisdictions to lower-tax jurisdictions, thus “eroding” the “tax-base” of the higher-tax jurisdictions, amounts to an estimated US$100-240 billion per year. These tax planning strategies are particularly pertinent to the digital economy and its business models that include several varieties of e-commerce, app stores, online advertising, cloud computing, high-speed trading, and online payment services. The companies often mentioned as exploiting these tax planning strategies include U.S. tech companies such as Amazon, Apple, Facebook, Google, and Microsoft. Speaking at an event in Dublin, Ireland on January 20, 2020, Apple CEO Tim Cook stated that the debate on taxing multinational companies needs to take place at a global level and that he is “hopeful and optimistic” that the OECD will strike a deal on worldwide corporation tax. And in an opinion letter in the Financial Times on February 16, 2020, Facebook CEO Mark Zuckerberg wrote that tech companies should serve society, including at the corporate level, and thus “we support the OECD’s efforts to create fair global tax rules for the internet [because] clearer rules would be better for everyone”. So what might the OECD-led multilateral effort to tax the digital economy look like? Read on….

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Item Type: Article
Subjects: Diritto tributario
Diritto tributario > Internazionale e dell'UE
Date Deposited: 21 Apr 2020 08:31
Last Modified: 21 Apr 2020 08:31

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