Tax Challenges in the Digital Economy

This paper analyses direct and indirect tax challenges in the digital economy in light of the conclusions of the OECD’s BEPS (Base Erosion and Profit Shifting) Project. While assessing the recent reforms in the area of taxation within the EU and third countries, it revisits the question of whether or not specific measures are needed for the digital sector.

Taking into account the recent scandals involving big digital companies and their aggressive tax planning practices in the EU, the specificities of the digital sector and the legal landscape in the 28 Member States, the paper makes policy recommendations for further tax reforms in order to tackle tax avoidance and harmful competition.

European Parliament: Directorate-General for Internal Policies of the Union: Publications available via the EU Bookshop http://bookshop.europa.eu/en/directorate-general-for-internal-policies-of-the-union-cbf.cKABstF7wAAAEjwYYY4e5K/

European Parliament: European Parliamentary Research Service: Study, June 2016: Tax Challenges in the Digital Economy http://www.europarl.europa.eu/RegData/etudes/STUD/2016/579002/IPOL_STU(2016)579002_EN.pdf

ESO: Background information: Corporate tax avoidance: Council agrees its stance on anti-avoidance rules http://www.europeansources.info/record/press-release-corporate-tax-avoidance-council-agrees-its-stance-on-anti-avoidance-rules/

OECD: Centre for Tax Policy and Administration: Base Erosion and Profit Shifting http://www.oecd.org/ctp/beps.htm

ESO: Background information: Understanding the OECD tax plan to address 'base erosion and profit shifting' – BEPS http://www.europeansources.info/record/understanding-the-oecd-tax-plan-to-address-base-erosion-and-profit-shifting-beps/

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