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Challenges of the Digital Era Development in Relation to Tax Systems. Taxing the Digital Economy

Author

Listed:
  • Robert-Aurelian ȘOVA

    (Bucharest University of Economic Studies)

  • Adriana Florina POPA

    (Bucharest University of Economic Studies)

Abstract

The digital era provides new opportunities for innovation and economic growth. Fiscally, it creates opportunities for tax administrations to reduce tax evasion. On the other hand, the changing business models create international pressure on the tax system. The current requirements were established at the beginning of the 20th century for traditional companies, based on the principle of taxing profits where value is created. For digital activities, physical presence is no longer necessary in order to provide services. Thus, two major questions arise: Where do we tax? , in the case of a company with limited or no physical presence, and What do we tax? , in the case of a digital business plan based on knowledge, data and intangible assets.

Suggested Citation

  • Robert-Aurelian ȘOVA & Adriana Florina POPA, 2020. "Challenges of the Digital Era Development in Relation to Tax Systems. Taxing the Digital Economy," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 1(3), pages 65-70, March.
    • Handle: RePEc:ahd:journl:v:1:y:2020:i:3:p:65-70
    DOI: 10.37945/cbr.2020.03.07
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    References listed on IDEAS

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    1. Campbell, Katherine & Helleloid, Duane, 2016. "Starbucks: Social responsibility and tax avoidance," Journal of Accounting Education, Elsevier, vol. 37(C), pages 38-60.
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    More about this item

    Keywords

    digital era; tax system; taxation; digital services;
    All these keywords.

    JEL classification:

    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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