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41 Va. Tax Rev. 345 (2021-2022)
Toward a Big Bang for the Taxation of the Digitalized Economy: A Business Retrospective, Perspective, and Prospective

handle is hein.journals/vrgtr41 and id is 361 raw text is: TOWARD A BIG BANG FOR THE TAXATION OF THE DIGITALIZED ECONOMY: A BUSINESS RETROSPECTIVE, PERSPECTIVE, AND PROSPECTIVE By Julien Chaisse * This article examines how various tax policy changes being announced, proposed, or implemented in various countries affect business models that run on digital platforms. These include digital services taxes (DST), interna- tional corporate tax, value-added tax (VAT), or goods and services tax (GST) reforms towards taxing the income that arises out of cross border flow of user data or towards the income that arises out of the trade of digital goods and services. This research seeks to understand how the covid-19 pandemic affects cross-border digital services and how tax policy changes in different countries affect business operations and decisions made by companies to re- spond to such changes. The G7, the G20, and the OECD recently came to a proper conclusion while discussing potential issues arising from taxing the digital economy. The discussions yielded two proposals that aim to globally tax the digitalization of the economy and market - in the form of the Base Erosion and Profit Shifting project Two-Pillar solution agreed by 136 countries on October 8, 2021. This article explains and analyzes the rele- vance of these proposals and proposes certain changes in these tax policies to advise better, more coherent digital tax policy, which governments can apply to ensure that a fair tax regime is implemented more uniformly as com- pared to the status quo where countries are unilaterally implementing digital tax policies through changes in their domestic regulations. *Dr. Julien Chaisse, Professor, School of Law, City University of Hong Kong and Pres- ident, Asia Pacific FDI Network (Email: julien.chaisseacityu.edu.hk). The author wishes to thank Liselott Kana and Divij Kumar for their research assistance. The author also thanks Richard Bolwijn, Jeffrey Owens, David Bradbury, Jamieson Kirkwood, Michael Keen, Zahira Quattrocchi, Tove Ryding, Logan Wort, Anita Kapur, and Michael Lennard for indispensable feedback and comments, attendees at the UNCTAD's 7th Edition of the World Investment Forum (WIF202 1) session on The interplay between international taxation and investment - Evaluating the implications of G20's promoted changes (October 2021) and comments re- ceived at the Asia FDI Forum V Globalization and Digitalization: Interconnections Between Taxation, Trade, and Investment (June 2021), where a previous version of this Article was first presented. The views expressed herein by the Author are his personal ones. 345

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