Despite the fact that digital business models have created an unprecedented amount of shareholder value in the last decade, they are taxed at a surprisingly low level in the countries where they have the most customers. This has become the subject of heated public debate and has led to a number of regulatory initiatives, such as the OECD’s ‘Base Erosion and Profit Shifting’ (BEPS) 2.0 project. What impact will that initiative have on the relationship between digital service providers, consumers and tax authorities? Will the use of blockchain technology bring new opportunities to corporate tax enforcement by using real-time information from shared trusted data sources?
In the latest of her Duet series, Dr Caldarola, author of Big Data and Law, and tax expert, Svetlana Schiel, consider new developments in corporate tax laws as well as related future challenges.(more…)