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International Taxation In An Era Of Digital Disruption: Analyzing The Current Debate, Itai Grinberg
International Taxation In An Era Of Digital Disruption: Analyzing The Current Debate, Itai Grinberg
Georgetown Law Faculty Publications and Other Works
The “taxation of the digital economy” is currently at the top of the global international tax policymaking agenda. A core claim some European governments are advancing is that user data or user participation in the digital economy justifies a gross tax on digital receipts, new profit attribution criteria, or a special formulary apportionment factor in a future formulary regime targeted specifically at the “digital economy.” Just a couple years ago the OECD undertook an evaluation of whether the digital economy can (or should) be “ring-fenced” as part of the BEPS project, and concluded that it neither can be nor should …
Residence-Based Formulary Apportionment: (In-)Feasibility And Implications, Wei Cui
Residence-Based Formulary Apportionment: (In-)Feasibility And Implications, Wei Cui
All Faculty Publications
I examine one way of taxing international corporate income that has not previously been studied, “residence-based formulary apportionment” or RBFA. I first offer a new taxonomy of different ways of taxing corporate income by reference to individual shareholders, and distinguish what I call the “shareholder attribution” approach from integration, pass-through, and other approaches. I then argue that although traditional international legal norms had led international tax design to avoid taxing foreign corporations “unconnected” with the taxing jurisdiction (e.g. foreign corporations earning only foreign income), these legal norms have gone through substantial transformations in recent years. The exercise of jurisdiction over …