Book contents
- Taxing the Digital Economy
- Cambridge Tax Law
- Taxing the Digital Economy
- Copyright page
- Dedication
- Contents
- Figures
- Preface
- Acknowledgements
- Part I
- 1 Taxing Cross-Border Business Income
- 2 The Development of Digital Business
- 3 Challenges to the Tax System Posed by the Digitalisation of Business
- 4 Responding to the Challenges
- Part II
- Index
4 - Responding to the Challenges
Legal Constraints on Any Changes to the Current Framework
from Part I
Published online by Cambridge University Press: 23 April 2021
- Taxing the Digital Economy
- Cambridge Tax Law
- Taxing the Digital Economy
- Copyright page
- Dedication
- Contents
- Figures
- Preface
- Acknowledgements
- Part I
- 1 Taxing Cross-Border Business Income
- 2 The Development of Digital Business
- 3 Challenges to the Tax System Posed by the Digitalisation of Business
- 4 Responding to the Challenges
- Part II
- Index
Summary
This chapter continues the examination of the international tax landscape and sets out the two broad options for the reform of tax on cross-border transactions. It has a particular focus on legal constraints existing in double tax agreements and trade agreements. In responding to the challenges detailed in Chapter 3, countries are faced with the option of a consensus-driven multilateral solution, or some form of unilateral domestic interim taxation. In designing unilateral taxes, one needs to be informed and aware of the limitations imposed by existing international trade and taxation agreements. This chapter highlights the potential constraints but concludes that certain forms of unilateral taxation remain as options within these existing legal constraints.
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- Taxing the Digital EconomyTheory, Policy and Practice, pp. 112 - 164Publisher: Cambridge University PressPrint publication year: 2021