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Digital Services Tax: A Cross-Border Variation Of The Consumption Tax Debate, Young Ran Kim
Digital Services Tax: A Cross-Border Variation Of The Consumption Tax Debate, Young Ran Kim
Utah Law Faculty Scholarship
The rise of highly digitalized businesses, such as Google and Amazon, has strained the traditional income tax rules on nexus and profit allocation. Traditionally, profit is allocated to market countries where consumers are located only if the business has a physical presence. However, in the digital economy, profits can be easily generated in market countries without a physical presence, resulting in tax revenue loss for market countries. In response, market countries have started imposing a new tax, called the digital services tax (DST), on certain digital business models, which has ignited heated debate across the globe. Supporters defend the DST, …
Digital Services Tax: A Cross-Border Variation Of The Consumption Tax Debate, Young Ran Kim
Digital Services Tax: A Cross-Border Variation Of The Consumption Tax Debate, Young Ran Kim
Utah Law Faculty Scholarship
The rise of highly digitalized businesses, such as Google and Amazon, has strained the traditional income tax rules on nexus and profit allocation. Traditionally, profit is allocated to market countries where consumers are located only if the business has physical presence. However, in the digital economy, profits can be easily generated in market countries without a physical presence, resulting in tax revenue loss for market countries. In response, market countries have started imposing a new tax, called the digital services tax (“DST”), on certain digital business models, which has ignited heated debate across the globe. Supporters defend the DST, designed …
The Digital Consumption Tax, Reuven S. Avi-Yonah, Nir Fishbien
The Digital Consumption Tax, Reuven S. Avi-Yonah, Nir Fishbien
Articles
Amid rising tension between the United States and France over the Digital Services Tax (DST), this article propositions the imposition of a Digital Consumption Tax, rather than the gross-receipts DST. The Digital Consumption Tax is not a new tax. It is a consumption tax (i.e. Value-Added Tax, or VAT, in Europe and sales tax in the United States) that is imposed on digital transactions. Such consumption tax would be applied on the seemingly free interaction between Facebook (and other companies alike) and its Users. This interaction, under which Users gain access to the Facebook platform for ‘free’ – should be …