The Resource International taxation in an era of digital disruption : analyzing the current debate

International taxation in an era of digital disruption : analyzing the current debate

Label
International taxation in an era of digital disruption : analyzing the current debate
Title
International taxation in an era of digital disruption : analyzing the current debate
Creator
Subject
Language
eng
Summary
This paper sets out some considerations for U.S. international tax policymaking and international tax diplomacy in this uncertain environment. Part I briefly describes four disparate background considerations that should inform our thinking. Part IA describes the decline of the arm's-length standard, which underpinned our historic understandings about how to attribute profits as among entities within a multinational corporation (MNC). Part IB describes the relationship between the arm's-length standard, jurisdiction to tax, and the attribution of profits to permanent establishments (PE). It highlights that under OECD principles, attribution of profits to PEs is accomplished through application of the OECD's transfer pricing guidelines (TPG). Part IC recounts various acts of tax unilateralism abroad, often focused on the tech sector, and including the trend toward abandoning historic limits on jurisdiction to tax. Part ID describes the United States' 2017 tax reform in that global context, with a particular focus on the global intangible low-taxed income (GILTI) and the BEAT. Part II focuses on the European Commission and Her Majesty's Treasury (HMT) stated view that user participation should be acknowledged as a source of value creation in the digital economy and concludes that the user participation concept has application well beyond the so-called digital economy. Part III evaluates a version of the "marketing intangibles" idea and builds on the discussion about "where we go from here" in transfer pricing and concludes that splitting taxing rights over "excess" returns between the present transfer pricing system and a destination-based approached is complex. Part IV evaluates a version of a minimum tax system that combines inbound and outbound measures. Finally, the destination-based residual market profit allocation (DBRMPA) likely requires extensive tax harmonization and information exchange; more so than a minimum tax approach
Citation source
In: International tax journal. - Riverwoods. - Vol. 45 (2019), no. 2 (March-April) ; p. 39-71
http://library.link/vocab/creatorName
Grinberg, I
Geographic coverage
International
Language note
English
http://library.link/vocab/subjectName
  • OECD Transfer Pricing Guidelines
  • digital economy
  • arm's length principle
  • MNE
  • PE
  • tax reform
  • GILTI
  • BEAT
  • user participation
Label
International taxation in an era of digital disruption : analyzing the current debate
Instantiates
Publication
Label
International taxation in an era of digital disruption : analyzing the current debate
Publication

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