Neither trade nor tax are new issues. What is new are the types of challenges that digital trade poses to revenue collection. In the digital economy, firms can be located anywhere and provide goods and services online without any need for a physical presence – confounding governments facing fiscal pressures. Increasingly, trade policies need to reflect changes in tax policies and vice versa.
Join us on September 23 to discuss important ways that the digital economy has affected traditional tax systems: such as by allowing firms to compete in markets without a physical presence; by the proliferation of approaches, mostly used by large firms, to manage tax more carefully; and by the participation in cross-border trade by companies previously not engaged in such transactions. As a global tax deal agreed to by the G20 nears conclusion, closing the divide between trade and tax policy becomes more urgent.