The EU Parliament’s ‘TAX3’ committee on financial crimes, tax evasion and tax avoidance has published a report entitled, Impact of digitalisation on international tax matters.
The report, commissioned from the EU Parliament’s policy department for economic, scientific and quality of life policies, discusses tax challenges posed by digitalisation, especially new business models and value creation, the impact of BEPS actions, unilateral measures and recent tax developments in the EU and the US.
The report regards global solutions at the OECD level as preferable but notes that ‘it is doubtful whether consensus will be reached on nexus and profit allocation rules by 2020’.
The authors quote criticism of the EU’s digital services tax proposal from business, practitioners and academics as ‘populist and flawed’ and possibly harmful for loss-making businesses and start-ups. The Commission's proposed long-term solution is also criticised for its ‘vagueness and complexity’.
The report recommends a ‘balanced approach’, suggesting ‘better coordination, creativity, and an inclusive framework would help the EU and its member states tackling taxation challenges in a digitalised world’. Inclusion of the ‘virtual permanent establishment’ in the CCCTB proposal is seen as worthy of serious consideration.
The EU Parliament’s ‘TAX3’ committee on financial crimes, tax evasion and tax avoidance has published a report entitled, Impact of digitalisation on international tax matters.
The report, commissioned from the EU Parliament’s policy department for economic, scientific and quality of life policies, discusses tax challenges posed by digitalisation, especially new business models and value creation, the impact of BEPS actions, unilateral measures and recent tax developments in the EU and the US.
The report regards global solutions at the OECD level as preferable but notes that ‘it is doubtful whether consensus will be reached on nexus and profit allocation rules by 2020’.
The authors quote criticism of the EU’s digital services tax proposal from business, practitioners and academics as ‘populist and flawed’ and possibly harmful for loss-making businesses and start-ups. The Commission's proposed long-term solution is also criticised for its ‘vagueness and complexity’.
The report recommends a ‘balanced approach’, suggesting ‘better coordination, creativity, and an inclusive framework would help the EU and its member states tackling taxation challenges in a digitalised world’. Inclusion of the ‘virtual permanent establishment’ in the CCCTB proposal is seen as worthy of serious consideration.
