Wednesday, February 13, 2019
Arthur J. Cockfield (Queen's University), Tax Wars: The Battle over Taxing Global Digital Commerce, 161 Tax Notes 1331 (Dec. 10, 2018):
This Article discusses the emergence of an international tax “war” and provides an overview of global digital taxation reform efforts. Governments have been unable to attain consensus surrounding how to tax cross-border digital transactions. As a result, dozens of governments are now pursuing uncoordinated reforms -- including digital services taxes, economic presence tests, withholding taxes and equalization levies -- that will encourage international double taxation and inhibit cross-border trade and investment. The global digital tax conflict masks a growing dissatisfaction with how to tax value associated with global transactions.
Until this larger problem is unresolved, the war may continue unabated.