Protecting the Tax Base in a Digital Economy

United Nations Handbook on Selected Issues in Protecting the Tax Base of Developing Countries, June 2015, ISBN: 978-92-1-159109-5

Osgoode Legal Studies Research Paper No. 78

46 Pages Posted: 19 Apr 2018  

Jinyan Li

York University - Osgoode Hall Law School

Date Written: April 18, 2018

Abstract

This paper provides an overview of the main features of digital economy and why it poses challenges to existing framework and principles of international taxation. It explains the fiscal impact of these challenges in developing countries. Among the challenges is the “cyberization” of tax base because the existing jurisdictional nexus (such as permanent establishment) and profit attribution rules assume physical presence and actual activities, neither is particularly relevant in a digital business. The paper canvasses some recent developments and urges developing countries to participate in developing global solutions.

Keywords: BEPS, digital economy, permanent establishment, source of income, developing countries

Suggested Citation

Li, Jinyan, Protecting the Tax Base in a Digital Economy (April 18, 2018). United Nations Handbook on Selected Issues in Protecting the Tax Base of Developing Countries, June 2015, ISBN: 978-92-1-159109-5; Osgoode Legal Studies Research Paper No. 78. Available at SSRN: https://ssrn.com/abstract=3164995

Jinyan Li (Contact Author)

York University - Osgoode Hall Law School ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada
416-736-5025 (Phone)

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