Taxation of the Digitalized Economy

Global internet firms like Google, Apple, Facebook and Amazon not only dominate manifold markets, they also have succeeded in lowering their overall tax burden substantially. This has led to widespread political action, including initiatives taken at the level of the G20, the OECD and the European Union, supported by influential NGOs. In October 2020 the Inclusive Framework at the OECD put forward a major proposal to rearrange the international tax system in order to capture profits not only arising from international digital business models but also profits related to consumer-facing business activities in other industries. The stakes are high: If the new approach doesn’t find consensus, unilateral action in many countries might follow and give rise to retaliatory measures, in particular a resurgence of tariffs. Prof. Wolfgang Schön, Director of the Max Planck Institute for Tax Law and Public Finance, will introduce the historical background of the current international tax system, the impact of technological change and the policy issues underlying any reallocation of taxing rights which go far beyond the digitalized economy. He will then discuss alternative trajectories towards a more stable international tax system, considering both efficiency and fairness as benchmarks of international tax policy.

Zoom Session / Link Provided to Registrants

Enrolment: Only PhD Candidates and Postdocs within the Max Planck Law network of Institutes.

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