Thursday, June 20, 2019
Monica Victor (S.J.D. 2019, Florida), Addressing Developing Countries’ Tax Challenges of the Digitalization of the Economy:
There is a consensus that the existing international taxation rules and standards are not adequate to allocate taxing rights and income among countries, prevent tax base-eroding transactions carried by multinationals and fight harmful tax competition among countries. The digitalization of the economy rushed and escalated the problems, and even developed countries are not able to collect taxes on the profits of multinationals anymore. Thus, countries are pursuing the reform of the international legal tax system focusing on the corporate taxation standards and the tax challenges of the digitalization of the economy. In this context, the challenges faced by developing countries are higher.
The present paper analyses the proposals on the Public Consultation Document Addressing the Tax Challenges of the Digitalisation of the Economy issued by the Inclusive Framework on BEPS.