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Problems caused by unilateral measures while taxing the digital economy: Does the value creation approach suggested by OECD solve the problem?

Prasad, Priyanka Kumari LU (2023) HARN60 20231
Department of Business Law
Abstract
This thesis examines the challenges arising from unilateral measures taken by both developing and developed countries to protect their taxing rights in the digital economy, leading to issues of double taxation. It focuses on India's equalisation levy and the UK's diverted profits tax (DPT) as examples of unilateral measures. The thesis evaluates whether the value creation approach recommended by the OECD can effectively eliminate juridical double taxation in the digital economy.The thesis also discusses the value creation approach in the context of the BEPS initiative and transfer pricing regulations, emphasizing the importance of functional analysis. The EU Commission's proposal of a "significant digital presence" to establish a taxable... (More)
This thesis examines the challenges arising from unilateral measures taken by both developing and developed countries to protect their taxing rights in the digital economy, leading to issues of double taxation. It focuses on India's equalisation levy and the UK's diverted profits tax (DPT) as examples of unilateral measures. The thesis evaluates whether the value creation approach recommended by the OECD can effectively eliminate juridical double taxation in the digital economy.The thesis also discusses the value creation approach in the context of the BEPS initiative and transfer pricing regulations, emphasizing the importance of functional analysis. The EU Commission's proposal of a "significant digital presence" to establish a taxable nexus is examined as well.While the traditional approach based on physical presence is not suitable for the digital economy, the thesis argues that the value creation approach can ensure fair and sufficient taxing rights for jurisdictions where value is generated. (Less)
Please use this url to cite or link to this publication:
author
Prasad, Priyanka Kumari LU
supervisor
organization
course
HARN60 20231
year
type
H1 - Master's Degree (One Year)
subject
keywords
Unilateral measures, Equalisation levy, Diverted Profit Tax, Digital economy, Value creation approach, Juridical double taxation, OECD's Pillar One.
language
English
id
9122907
date added to LUP
2023-06-16 11:10:14
date last changed
2023-06-16 11:10:14
@misc{9122907,
  abstract     = {{This thesis examines the challenges arising from unilateral measures taken by both developing and developed countries to protect their taxing rights in the digital economy, leading to issues of double taxation. It focuses on India's equalisation levy and the UK's diverted profits tax (DPT) as examples of unilateral measures. The thesis evaluates whether the value creation approach recommended by the OECD can effectively eliminate juridical double taxation in the digital economy.The thesis also discusses the value creation approach in the context of the BEPS initiative and transfer pricing regulations, emphasizing the importance of functional analysis. The EU Commission's proposal of a "significant digital presence" to establish a taxable nexus is examined as well.While the traditional approach based on physical presence is not suitable for the digital economy, the thesis argues that the value creation approach can ensure fair and sufficient taxing rights for jurisdictions where value is generated.}},
  author       = {{Prasad, Priyanka Kumari}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Problems caused by unilateral measures while taxing the digital economy: Does the value creation approach suggested by OECD solve the problem?}},
  year         = {{2023}},
}