We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
AND YOU PUT THE LOAD RIGHT ON ME DIGITAL TAXES, TAX DISCRIMINATION AND TRADE IN SERVICES.
- Authors
MAVROIDIS, PETROS C.
- Abstract
The taxation of multinational digital companies has recently captured the policy headlines. A disagreement between France and the United States almost led to yet another trade feud. For now, at least, the disputing parties have moved away from pugilistic behaviour and have promised to attempt a negotiated solution. The solution to the issue should, of course, take into account the Members' rights and obligations under the relevant World Trade Organization (WTO) Agreements, especially the General Agreement on Trade in Services (GATS). Consistency with the GATS, however, is only one aspect of the story, albeit an important one. Taxation is generally legal, if a jurisdictional link between the taxing authority and the taxed entity can be established, and jurisdictional issues are not explicitly addressed in GATS, even though, absent implicit understanding on this score, key GATS principles risk being invalidated. The complicating factor in this discussion, is that multinational digital companies do not necessarily need to be physically incorporated in each jurisdiction where they operate. Tensions may arise since, in the absence of fiscal harmonisation, companies may have the incentive to choose the seat of their incorporation in jurisdictions where tax rates are lower, whereas governments in countries where tech companies operate may want to increase their tax burden. In this paper, we map the brass tracks of the relevant international legal framework that digital taxes must observe, and the evolving norms regarding the basis for taxation with special focus on the curious case of the digital sector
- Subjects
TAX incidence; REPAIR &; maintenance services; TAX rates; GENERAL Agreement on Trade in Services (Organization); WORLD Trade Organization; TAXATION
- Publication
Trade, Law & Development, 2020, Vol 12, Issue 1, p75
- ISSN
0976-2329
- Publication type
Article