Zoe Wyatt and Miles Dean (Milestone International Tax Partners) examine the EC’s proposals surrounding a fair and efficient tax system in the EU for the digital single market.
The EC has announced that it will drive efforts to fundamentally reform international tax rules to ensure that the digital economy is taxed in a ‘fair and growth-friendly way’. The communication adopted by the EC (dated 21 September 2017 see bit.ly/2fcMCXq) states that the international tax framework despite having worked well for traditional bricks and mortar companies is ineffective in the digital age. It identifies two critical components used by MNEs to limit the level of profits recognised in the territories in which its customers are located (source territories). This includes:
exploitation of the shortcomings of the OECD and/or a country’s domestic definition of a permanent establishment (PE); and
exploitation of the...
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Zoe Wyatt and Miles Dean (Milestone International Tax Partners) examine the EC’s proposals surrounding a fair and efficient tax system in the EU for the digital single market.
The EC has announced that it will drive efforts to fundamentally reform international tax rules to ensure that the digital economy is taxed in a ‘fair and growth-friendly way’. The communication adopted by the EC (dated 21 September 2017 see bit.ly/2fcMCXq) states that the international tax framework despite having worked well for traditional bricks and mortar companies is ineffective in the digital age. It identifies two critical components used by MNEs to limit the level of profits recognised in the territories in which its customers are located (source territories). This includes:
exploitation of the shortcomings of the OECD and/or a country’s domestic definition of a permanent establishment (PE); and
exploitation of the...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
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