TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Saturday, May 5, 2018

Li: Protecting The Tax Base In A Digital Economy

Jinyan Li (Osgoode Hall), Protecting the Tax Base in a Digital Economy:

This paper provides an overview of the main features of digital economy and why it poses challenges to existing framework and principles of international taxation. It explains the fiscal impact of these challenges in developing countries. Among the challenges is the “cyberization” of tax base because the existing jurisdictional nexus (such as permanent establishment) and profit attribution rules assume physical presence and actual activities, neither is particularly relevant in a digital business.

The paper canvasses some recent developments and urges developing countries to participate in developing global solutions.

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