Recent proposals of the OECD and the EU have taken a tougher stance on aggressive tax planning by multinationals. The dependence on physical presence for the establishment of a taxable nexus, which is a main feature of the existing tax framework, poses a great challenge for the taxation of cross-border transactions of, but not only, digital businesses. This EconPol Europe Lab Session will discuss the opportunities and risks of recent policy initiatives such as the European Commission’s Digital Services Tax proposals.
Can these proposals deliver what they promise – do they close the current loopholes in the tax system? What are the costs to competition and economic welfare in general and can such proposals find support amongst all member states?
EconPol Europe – The European Network for Economic and Fiscal Policy Research is a unique collaboration of 14 policy-oriented university and non-university research institutes that contribute their expertise to the discussion of the future design of the European Union. The network’s joint interdisciplinary research covers sustainable growth and best practice, reform of EU policies and the EU budget, capital markets and the regulation of the financial sector, and governance and macroeconomic policy in the European Monetary Union. More information about the network is available on our webpage at: http://www.econpol.eu/