Tax Law Committee

Tax and the Digital Economy

Session Synopsis:

This session will focus on the tax challenges and economic disruption caused by the modern digital economy.


The digital economy is growing rapidly, almost at the speed of sound and it is changing the way we do business in ways never imagined 20 years ago. Goods and services no longer have to be delivered from any type of physical presence in the users’ jurisdiction or in any other  jurisdiction.


The old taxation concepts of permanent establishment, nexus and source have dubious relevance as concepts for dividing the tax revenues from international business and may no longer be effective.


This session will review the tax challenges caused by the digital economy for income taxation, sales taxes and VAT. It will also review taxation of cryptocurrency and other digital transactions. It will review the responses of the OECD in Action Plan 1 and the work arising therefrom.


It will also review the responses of the OECD member states the European Union, the USA and Canada and the Asian nations. It will also consider what further OECD and state action can be expected.


The shifts in tax base from the rise of the digital economy can be enormous and the stakes are high for both developed and under developed economies.


Multinationals and others will need to be able to react to a changing tax landscape.



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