Digital Services Tax - A feasible solution for Taxation of the Digital Economy?
(2020) JURM02 20201Department of Law
Faculty of Law
- Abstract
- During the 21th century, digitalization is considered the most important development of the modern global economy. Tax avoidance is a growing issue for governments globally, that are loosing lots of tax money to finance public welfare systems supporting healthcare, educational institutions and infrastructures. Value creation in digital business models generates profits different than traditional business models and the current international tax rules are not fit for the digital era. Today’s rules facilitate the possibility for multinational enterprises to establish digital business models in various jurisdictions and are shifting their profits into low tax jurisdictions. A digital business can have minor or no physical presence in the... (More)
- During the 21th century, digitalization is considered the most important development of the modern global economy. Tax avoidance is a growing issue for governments globally, that are loosing lots of tax money to finance public welfare systems supporting healthcare, educational institutions and infrastructures. Value creation in digital business models generates profits different than traditional business models and the current international tax rules are not fit for the digital era. Today’s rules facilitate the possibility for multinational enterprises to establish digital business models in various jurisdictions and are shifting their profits into low tax jurisdictions. A digital business can have minor or no physical presence in the state where the actual business activity takes place, which causes disagreements about which government has the right to tax.
Multinational digital tech enterprises like Amazon, Google, Apple, Facebook etc., often with headquarters in third countries such as the US, are currently shifting their profits, generated from business activity in EU jurisdictions, into low tax countries such as Ireland or Luxemburg. A case that has brought a lot of public attention is the case between Ireland and the Commission in T-778/16, which illustrates the issues related to illegal state aid and EU competition law.
The OECD and the EU are working on a solution on both international and European level. The EU has presented concrete measures and a proposed Digital Services Tax, that is the main focus of this thesis. The situation has brought unilateral action among member states within the EU, trying to solve the issue by implementing domestic regulations, causing potential threat to the internal market. (Less) - Abstract (Swedish)
- Digitalisering är utan tvekan 2000-talets viktigaste bidragande orsak till utvecklingen av den globala ekonomin. Skatteplanering och skatteflykt bland multinationella bolag urholkar nationers skattebas som finansierar det offentliga välfärdssystemet såsom sjukvård, utbildningsinstitutioner och infrastruktur.
Digitala affärsmodeller genererar intäkter annorlunda än traditionella affärsmodeller och rådande internationella skatteregelverk är inte längre i fas med de affärsmodeller som är aktuella under den digitala eran. Dagens skatteregler möjliggör för multinationella bolag att etablera digitala affärsmodeller i flera olika jurisdiktioner och skiftar vinster in till lågskatteländer. En digital affärsmodell kan ha mycket liten eller... (More) - Digitalisering är utan tvekan 2000-talets viktigaste bidragande orsak till utvecklingen av den globala ekonomin. Skatteplanering och skatteflykt bland multinationella bolag urholkar nationers skattebas som finansierar det offentliga välfärdssystemet såsom sjukvård, utbildningsinstitutioner och infrastruktur.
Digitala affärsmodeller genererar intäkter annorlunda än traditionella affärsmodeller och rådande internationella skatteregelverk är inte längre i fas med de affärsmodeller som är aktuella under den digitala eran. Dagens skatteregler möjliggör för multinationella bolag att etablera digitala affärsmodeller i flera olika jurisdiktioner och skiftar vinster in till lågskatteländer. En digital affärsmodell kan ha mycket liten eller ingen närvaro alls, i den jurisdiktion där den faktiska affärsverksamheten råder, vilket skapar oenigheter bland länder om vilken nation som ska ha rätt att beskatta bolaget. Multinationella digitala Tech bolag såsom Amazon, Google, Apple, Facebook etc., vanligtvis med huvudkontor i tredjeland, såsom USA, skiftar sina vinster, genererade från affärsverksamhet i EU jurisdiktioner, till lågskatteländer såsom Irland eller Luxemburg. Ett rättsfall som har fått stor offentlig uppmärksamhet är Irland mot Kommissionen i T-778/16, ett fall som illustrerar skatterättslig problematik relaterad till konkurrensrättsliga EU regler om olagligt statsstöd.
OECD och EU är två institutioner som länge har arbetat för en lösning på både internationell och europeisk nivå. EU har presenterat olika konkreta åtgärder och har lagt fram ett förslag om införande av en Digital Services Tax, vilken den här uppsatsen huvudsakligen behandlar. Den rådande situationen har gett upphov till att flera EU medlemsländer har vidtagit enskilda åtgärder. De försöker lösa beskattningsproblematiken på egen hand genom att implementera egen inhemsk lagstiftning, vilket skapar potentiella hot mot EUs inre marknad. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9006628
- author
- Bergvad, Pernilla LU
- supervisor
-
- Mariya Senyk LU
- organization
- alternative title
- Digital Service Skatt - En möjlig lösning för beskattning av den digitala ekonomin?
- course
- JURM02 20201
- year
- 2020
- type
- H3 - Professional qualifications (4 Years - )
- subject
- language
- English
- id
- 9006628
- date added to LUP
- 2020-04-09 13:23:18
- date last changed
- 2020-04-09 13:23:18
@misc{9006628,
abstract = {{During the 21th century, digitalization is considered the most important development of the modern global economy. Tax avoidance is a growing issue for governments globally, that are loosing lots of tax money to finance public welfare systems supporting healthcare, educational institutions and infrastructures. Value creation in digital business models generates profits different than traditional business models and the current international tax rules are not fit for the digital era. Today’s rules facilitate the possibility for multinational enterprises to establish digital business models in various jurisdictions and are shifting their profits into low tax jurisdictions. A digital business can have minor or no physical presence in the state where the actual business activity takes place, which causes disagreements about which government has the right to tax.
Multinational digital tech enterprises like Amazon, Google, Apple, Facebook etc., often with headquarters in third countries such as the US, are currently shifting their profits, generated from business activity in EU jurisdictions, into low tax countries such as Ireland or Luxemburg. A case that has brought a lot of public attention is the case between Ireland and the Commission in T-778/16, which illustrates the issues related to illegal state aid and EU competition law.
The OECD and the EU are working on a solution on both international and European level. The EU has presented concrete measures and a proposed Digital Services Tax, that is the main focus of this thesis. The situation has brought unilateral action among member states within the EU, trying to solve the issue by implementing domestic regulations, causing potential threat to the internal market.}},
author = {{Bergvad, Pernilla}},
language = {{eng}},
note = {{Student Paper}},
title = {{Digital Services Tax - A feasible solution for Taxation of the Digital Economy?}},
year = {{2020}},
}