The economic participation principle as a justification for taxation

Resource Information

The work The economic participation principle as a justification for taxation represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

The economic participation principle as a justification for taxation

Creator

• Pavlovich, A

Subject

• Pillar 1 (OECD)
• Unified Approach (OECD)
• allocation of taxing rights
• case law
• digital economy
• OECD
• international taxation
• justification
• redistribution principle
• tax base
• tax policy
• globalization

Language

eng

Summary

This article considers why the economic participation principle, advanced as part of the OECD's recommendations, could provide a state justification for taxing all market participants. It discusses the current range of justifications, the views of historical theorists, and the state's role in managing the economy. A sound theoretical basis for justifying taxation is necessary for legitimising the existence of a taxing right. This is particularly important in the context of taxing non-residents. Justification for taxation can help determine who should fall within the tax base of a jurisdiction. The OECD’s "Pillar One" recommendations introduce the economic participation principle. This principle forms the basis for the new taxing right under the unified approach. This article argues that this principle should form the basis for justifying a state’s taxing rights over-all market participants, digital or otherwise, in a modern world. This principle is consistent with the purpose of taxation and the broader reason for a state’s existence. It is the existence of the economic participation in a state by a person that should determine whether or not a taxing right arises to a state in relation to that person

Citation source

In: British tax review. - London. - (2022), no. 2 ; p. 156-171

Geographic coverage

Europe

Language note

English