The introduction of a tax on digital business will not be a walk in the park. According to Bloomberg News, two recent proposals by the European Commission will likely create unwanted side effects for traditional industries such as car manufacturers and similar sectors currently undergoing transformation processes. A key issue: the current international tax framework. The core problem with today’s rules is that they’re “ill-prepared” to tax profits on intangible assets that don’t require a physical presence in a country, Pola Schneemelcher, a research fellow with the Delors Institut, told Bloomberg Tax.
For the full story, you can download the article here.