Tax Wars: The Battle over Taxing Global Digital Commerce
Tax Notes, Vol. 161, p. 1331, December 2018
10 Pages Posted: 28 Jan 2019
Date Written: December 10, 2018
This Article discusses the emergence of an international tax “war” and provides an overview of global digital taxation reform efforts. Governments have been unable to attain consensus surrounding how to tax cross-border digital transactions. As a result, dozens of governments are now pursuing uncoordinated reforms -- including digital services taxes, economic presence tests, withholding taxes and equalization levies -- that will encourage international double taxation and inhibit cross-border trade and investment. The global digital tax conflict masks a growing dissatisfaction with how to tax value associated with global transactions. Until this larger problem is unresolved, the war may continue unabated.
Keywords: tax law, accounting, digital tax, e-commerce, withholding tax
JEL Classification: K34, H21, H26
Suggested Citation: Suggested Citation