Nine of the world's Top 20 companies are digital businesses. Old (tax) rules don't fit their business models. Alliott Group's International Tax Services Group Chair David Gibbs explains in this short article how the OECD & EC are trying to ensure the digital economy is taxed fairly without compromising its future growth.
The European Commission (EC) and OECD recently issued publications with their latest proposals on how to tackle the issue of taxing profits and income from the digital economy. David Gibbs explains the latest position as far as concrete proposals are concerned.
Subsequent to Action 1 of the Base Erosion and Profit Shifting package of measures which were delivered to G20 Leaders in late 2015, the OECD has published an interim report which is very much an analysis of the issues and suggest a 'do nothing now' approach, giving a commitment to a two year project to be delivered in 2020. On the other hand, the EC takes a slightly different and more proactive view, with support for interim measures which can be implemented until a comprehensive global solution is found.
To read the full article, click here: https://www.alliottgroup.net/practice-management-resources-for-owner-managed-firms/taxing-the-digital-economy-beps/
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.