Abstract
Background
A digital and sustainable transformation is one of the EU’s top priorities. The European Commission, in its action plan for fair and simple taxation supporting recovery strategy, recognizes the importance of efficient taxation as the EU and global community seek to recover from the economic consequences
of the COVID-19 crisis. In a digitalised era, the drivers of the next stage of tax reforms will be based on the need for sustainable and inclusive growth, and tax revenues to finance budget deficits.
Governments will also strive to ensure a level playing field between digital and non-digital companies and that all companies pay tax in the place where value is created.
The transformation in the tax area relates not only to exploring the opportunities of making the national revenue collection more efficient but also to aligning the tax treatment in the internal market with the one under the domestic markets of Member States both with respect to the compliance burden and the enforcement mechanisms available. To do so, there is a number of technologies that
have the potential of transforming tax systems as we know them, some of which are already being explored by the Member States, and might be at the centre of coordinated action by the EU. Among these are the blockchain (in a general sense, separate from the narrow use-case of cryptocurrencies),
the internet of things, artificial intelligence and data processing, as well as cloud and quantum computing.
Aim
This research paper aims at:
• determining whether there is a risk for a negative impact on the internal market if Member States adopt unilateral and uncoordinated actions as regards the digitalisation of tax administrations and procedures;
• outlining the potential areas where coordinated action at EU level seems desirable and feasible;
• addressing some of the legal challenges that might arise from such coordinated action;
• discussing the key emerging technologies [...]
A digital and sustainable transformation is one of the EU’s top priorities. The European Commission, in its action plan for fair and simple taxation supporting recovery strategy, recognizes the importance of efficient taxation as the EU and global community seek to recover from the economic consequences
of the COVID-19 crisis. In a digitalised era, the drivers of the next stage of tax reforms will be based on the need for sustainable and inclusive growth, and tax revenues to finance budget deficits.
Governments will also strive to ensure a level playing field between digital and non-digital companies and that all companies pay tax in the place where value is created.
The transformation in the tax area relates not only to exploring the opportunities of making the national revenue collection more efficient but also to aligning the tax treatment in the internal market with the one under the domestic markets of Member States both with respect to the compliance burden and the enforcement mechanisms available. To do so, there is a number of technologies that
have the potential of transforming tax systems as we know them, some of which are already being explored by the Member States, and might be at the centre of coordinated action by the EU. Among these are the blockchain (in a general sense, separate from the narrow use-case of cryptocurrencies),
the internet of things, artificial intelligence and data processing, as well as cloud and quantum computing.
Aim
This research paper aims at:
• determining whether there is a risk for a negative impact on the internal market if Member States adopt unilateral and uncoordinated actions as regards the digitalisation of tax administrations and procedures;
• outlining the potential areas where coordinated action at EU level seems desirable and feasible;
• addressing some of the legal challenges that might arise from such coordinated action;
• discussing the key emerging technologies [...]
| Original language | English |
|---|---|
| Place of Publication | Luxembourg |
| Publication status | Published - 2021 |