Reading. Digital Economy Tax Issues

Cross-border taxation of digital transactions presents many challenges to countries and _____________ .

Given the nature of the challenges and the currently fragmented solutions, the Association of International Certified Professional Accountants is asking policymakers and multinational organizations to cooperate in developing global approaches to the taxation of transactions in the __________-  .

The policy paper applies the Association’s Guiding Principles of Good Tax Policy in discussing the ____________.

The paper discusses a number of proposals that are now being developed by international organizations and proposals that have been implemented or proposed by _________________ .

The Association emphasizes that several important principles of international taxation remain to be addressed in __________and should be done in a coordinated manner.

The digital service tax is a proposed 3% temporary tax on gross revenues from online advertising, digital intermediary activities, and the sale of data generated from user-provided information that the ____________  would impose to tax gross receipts there.

The tax is called a temporary tax because the EU is proposing to replace it when a more permanent international solution to the problem is ___________ .

Nonetheless, a number of countries have unilaterally begun to tax digital transactions, including ___________service permanent establishment rules in Saudi Arabia, the significant economic presence tests in Israel and India, a tax on digital transactions in Italy, and, in 2018, the United Kingdom’s proposal to impose a corporation tax on digital businesses.

Many jurisdictions are proposing to tax __________based on the user’s location, but the Association does not think that is a feasible way to proceed.

The policy paper urges all countries to work within an international framework to develop a ____________ for the digital economy.