Base Erosion and Profit Shifting (BEPS) and the Digital Economy

2018 ◽  
pp. 45-60
Author(s):  
Marianne Ojo ◽  
James A. DiGabriele
Keyword(s):  
Digital Economy ◽  
Profit Shifting ◽  
Cross Border ◽  
Audit Trails ◽  
Financial Environment

The digital economy, undoubtedly, has contributed to the immense task of clearly identifying, ascertaining, and accounting for sources, rationales, and audit trails relating to tax transactions. This is not only evident owing to difficulties associated with cross-border transaction regulations which govern different jurisdictions as well as the enforcement of such regulations, but also in respect of risks associated with the present global financial environment – all having generated from the rise in automation, increased and improved sophisticated technologies, globalization, and conglomeration. This chapter not only seeks to highlight the extent, contribution, and significance of the digital economy in respect of those risks associated with base erosion and profit shifting (BEPS) but also amongst other aims and objectives to recommend measures whereby regulations can be better enforced as a means of addressing practices associated with BEPS.

Analysis of integrated development of digital economy with the Heilongjiang Province’s cross-border E-commerce with Russia

2020 ◽  
Vol 93 (4) ◽  
pp. 16-23
Author(s):  
Song Linlin ◽  
Keyword(s):  
Financial Services ◽  
Rapid Development ◽  
Digital Economy ◽  
The Internet ◽  
Heilongjiang Province ◽  
Integrated Development ◽  
Development Status ◽  
Cross Border ◽  
Internet Economy ◽  
Comparative Advantages

Since the establishment of the China (Heilongjiang) pilot free trade zone, the development of cross-border e-commerce with Russia has continued to increase speed and quality. With its geographical advantages and its comparative advantages in the Internet field, Heilongjiang Province promoted the rapid development of the Internet economy in Russia, fostered a new digital trade format represented by cross-border e-commerce, and promoted online and offline collaborative promotion of customs clearance logistics and financial services. The paper expounds foundation and development status of Heilongjiang Province’s cross-border e-commerce, analyzes in integrated development of digital economy with the Heilongjiang Province’s cross-border e-commerce with Russia, and further puts forward prospects and recommendations.

scholarly journals TAXING DIGITAL ADVERTISING: A PROPOSAL TO INDONESIA

Scientax ◽  
2021 ◽  
Vol 3 (1) ◽  
pp. 1-28
Author(s):  
Galih Ardin
Keyword(s):  
Southeast Asia ◽  
Oecd Countries ◽  
Digital Economy ◽  
Tax Revenue ◽  
Indonesian Government ◽  
Cross Border ◽  
Permanent Establishment ◽  
The World ◽  
New Challenges ◽  
Taxation System

Tax on digital economy activities has become a widely discussed issue in the world because of the limitation on the permanent establishment concept in anticipating the digital economy's externalities. The failure of OECD countries to reach digital economic taxation agreements also caused these countries to take unilateral measures in securing their respective interests. Indonesia, as a country with considerable digital economy value in the Southeast Asia region, plans to implement the significant economic presence concept to secure its tax revenue that cannot be captured by PE concept in the digital cross-border transaction. However, the implementation of this new nexus could generate new challenges in the Indonesia taxation system. This study seeks to provide alternatives to the Indonesian government regarding the taxable presence and taxation methods on the digital economy, especially digital advertising, by conducting examination and evaluation through current nexuses, the international proposals, and other countries' experience in addressing tax challenges in the digital advertising.

scholarly journals Connecting users to trusted geospatial information for Europe

2019 ◽  
Vol 1 ◽  
pp. 1-1
Author(s):  
Michael John Cory
Keyword(s):  
Critical Role ◽  
Digital Economy ◽  
Location Based Services ◽  
Geospatial Data ◽  
Geospatial Information ◽  
Location Services ◽  
Land Registration ◽  
Cross Border ◽  
Research Activities ◽  
Reduced Time

<p><strong>Abstract.</strong> In recent years, we have seen an explosion in location-based services. Whether it is maps, cadastral data or land registration, geospatial information is driving applications to realise social, economic and environmental benefits for us all. Yet in the age of ‘Big Data’ and the ‘Internet of Things’, how can we know which data sources are reliable and how easy is it to find accurate, high-quality and detailed information that we can trust? Knowing that reliable sources exist, and where to obtain them, is essential for governments and those making critical decisions that affect all our lives.</p><p> As the official bodies responsible for national cadastre, land registration, geodetic surveying and mapping activities in Europe, European national mapping and cadastral agencies (NMCAs) fulfil an essential role providing definitive and detailed geospatial information. In an ever-changing world, NMCAs play an important and often critical role in helping to address the key global and regional issues that affect society, such as climate change, sustainable development, a digital economy, migration, security and health. With these challenges extending beyond national borders, society now expects a borderless digital economy and property market, as well as fully connected national databases for stronger cross-border emergency planning and environmental monitoring.</p><p> As their membership association, EuroGeographics is committed to supporting European NMCAs as they improve access to their rich source of trusted, authoritative geospatial information.</p><p> EuroGeographics is an independent international not-for-profit organisation representing Europe’s National Mapping, Cadastral and Land Registration Authorities. We believe in a society empowered by the use of trusted geospatial services from these official national sources. EuroGeographics strength lies in our extensive membership and we are proud to represent more than 60 organisations from 46 countries covering the whole of geographical Europe. We deliver benefits for each regardless of the geographical, technical, political, organisational, linguistic and business parameters in which they work. We support the public good by representing our members’ interests, maintaining networks that help our members improve their capabilities and role, and by facilitating access to and use of our members’ geospatial data and services.</p><p> EuroGeographics’ has the strategic objective of facilitating access to our members’ authoritative data for international users of harmonised, pan-European, geospatial information and services. It coordinates the compilation and production of pan-European datasets, and has been active in exploring the development of online services. The Open European Location Services (Open ELS) project has developed services to demonstrate and test the level of interest in pan-European authoritative geospatial information. EuroGeographics has coordinated this two-year project which was co-financed by the European Union’s Connecting Europe Facility working with partners from member organisations in Finland, Germany, Great Britain, Norway, Poland, Spain, Sweden and The Netherlands. The Project has focused on facilitating access to, and encouraging the take up and use of this information, and is strongly user orientated with a programme of activities to support the digital economy.</p><p> As well as test services, an Open ELS data policy has been developed which applies only to the geospatial pan-European data and services developed and maintained by EuroGeographics and its members through the Open ELS Project. The Policy was drafted using research which revealed the scope of open geospatial data from official national sources across Europe, and revealed the diversity of policy, business and legal approaches across Europe to what is ‘open’ data.</p><p> Additional research, carried out by Deloitte and EuroGeographics, found that small and medium sized enterprises (SMEs) in Europe have a strong appetite for more cross-border authoritative data which could help them improve their product and service offerings, save money and become more competitive. The research highlighted four potential benefits from providing harmonised single access to pan-European geospatial information: The possibility to improve existing products and services offering; the possibility to develop new products and services; the reduced time and costs of dealing with different national mapping and cadastral agencies; and the reduced time and costs for acquiring and accessing data.</p><p> Key findings from these research activities will be presented, along with an outline of the project, and what it has achieved.</p>

scholarly journals Benchmarking Marketing Intangibles: Need for Coordinated Transfer Pricing Regimes

2017 ◽  
Vol 3 (2) ◽  
Author(s):  
Lakshana Radhakrishnan
Keyword(s):  
Transfer Pricing ◽  
Tax Policies ◽  
Profit Shifting ◽  
International Consensus ◽  
Effective Implementation ◽  
Cross Border ◽  
Tax Regimes ◽  
Cross Country ◽  
Tax Systems ◽  
National Tax

Tax competitive policies can be effective in cases of a collaborated cross-border effort with international consensus on minimum thresholds and mechanisms for cross-country cooperation. However, aggressive uncoordinated tax competitiveness destroys value and shrinks the growth and prosperity of the industry. Hence, there is a need for tax certainty and common standards in international transfer pricing. The OECD has provided a framework for countries to move towards universal tax regimes that have common tax policies and coordinated implementation systems. This paper highlights the issue of AMP (advertising, marketing and promotion) costs in transfer pricing and seeks to establish the need for coordination among national tax systems. Ensuring consistency among the tax policies of the world’s nations is important for preventing instances of BEPS (base erosion and profit shifting) that are the products of the gaps between elaborately drafted and extremely complicated tax legislations. Creation of universal tax principles and their effective implementation is the only solution to this problem.

scholarly journals The UK and Digital Trade: Which way forward?

2021 ◽  
Author(s):  
Emily Jones ◽  
Beatriz Kira ◽  
Anna Sands ◽  
Danilo B. Garrido Alves
Keyword(s):  
Global Economy ◽  
Trade Agreements ◽  
Digital Economy ◽  
International Standards ◽  
Policy Implications ◽  
The Internet ◽  
Cross Border ◽  
Data Flows ◽  
The Us ◽  
The Uk

The internet and digital technologies are upending global trade. Industries and supply chains are being transformed, and the movement of data across borders is now central to the operation of the global economy. Provisions in trade agreements address many aspects of the digital economy – from cross-border data flows, to the protection of citizens’ personal data, and the regulation of the internet and new technologies like artificial intelligence and algorithmic decision-making. The UK government has identified digital trade as a priority in its Global Britain strategy and one of the main sources of economic growth to recover from the pandemic. It wants the UK to play a leading role in setting the international standards and regulations that govern the global digital economy. The regulation of digital trade is a fast-evolving and contentious issue, and the US, European Union (EU), and China have adopted different approaches. Now that the UK has left the EU, it will need to navigate across multiple and often conflicting digital realms. The UK needs to decide which policy objectives it will prioritise, how to regulate the digital economy domestically, and how best to achieve its priorities when negotiating international trade agreements. There is an urgent need to develop a robust, evidence-based approach to the UK’s digital trade strategy that takes into account the perspectives of businesses, workers, and citizens, as well as the approaches of other countries in the global economy. This working paper aims to inform UK policy debates by assessing the state of play in digital trade globally. The authors present a detailed analysis of five policy areas that are central to discussions on digital trade for the UK: cross-border data flows and privacy; internet access and content regulation; intellectual property and innovation; e-commerce (including trade facilitation and consumer protection); and taxation (customs duties on e-commerce and digital services taxes). In each of these areas the authors compare and contrast the approaches taken by the US, EU and China, discuss the public policy implications, and examine the choices facing the UK.

Biden will improve labour rules in digital economy

2021 ◽  
Keyword(s):  
Job Security ◽  
Digital Economy ◽  
Content Type ◽  
Cross Border ◽  
Knowledge Based

Significance Biden wants to tackle the rise of digital labour platforms offering workers greater flexibility but lower pay, benefits and job security. The issue has become urgent due to the pandemic-linked boom in the digital economy. Impacts An economy based on knowledge-based innovation will be inherently volatile. Education will need to pivot radically to skill workers for the digital economy. Trade, taxation, labour and welfare rules historically based on geographically defined jurisdictions will need cross-border governance.

scholarly journals Value Added Tax on Cross-Border Digital Supplies: The Kenyan Approach under the Finance Act 2019

2021 ◽  
Vol 1 (1) ◽  
pp. 37-62
Author(s):  
Abdullahi Ali
Keyword(s):  
Value Creation ◽  
Intangible Assets ◽  
Value Added ◽  
Digital Economy ◽  
Value Added Tax ◽  
Cross Border ◽  
Tax Assessment ◽  
The World ◽  
The Way

Advancements in the global digital economy have resulted in high levels of profitability for enterprises operating within it. The digital economy is particularly challenging for tax authorities the world over, as it is characterised by an unparalleled reliance on intangible assets and a difficulty in determining the jurisdiction in which value creation occurs. It is against this backdrop that Kenya enacted the Finance Act 2019, that had amongst its objectives, the effective taxation on the consumption of cross-border digital supplies. The amendments are largely targeted at the taxation of imported digital supplies from foreign jurisdictions to final consumers in Kenya. They place the responsibility of tax assessment and remittance to the consumer of the service. This move presents a critical departure from the previous regime where the responsibility of Value Added Tax (VAT) assessment and remittance fell on the firms supplying the service squarely. This paper critically assesses the practical efficacy and inherent weaknesses arising from the potential implementation of the proposed amendments under the VAT Act and provides recommendations on the way forward.

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