Taxation of the digitalised economy : what is the European Union’s response to a changing tax landscape?

Abstract

This dissertation aims to analyse the taxation policy direction of the European Union in the field of the Digital Economy. This is done by means of a focus on understanding the philosophy and ideology of the European Union’s legislators. As a result of this, this dissertation delves into the legislative proposals of both the Organisation for Economic Co-operation and Development which is the international organisation that serves as the driving force to revolutionise current taxation structures, as well as those of the European Union. In order to evaluate and provide the fullest context to the latest proposals issued by these two bodies, this dissertation seeks to make a chronological approach towards the discussions and proposals made throughout the past decade to provide a basis for the situation as it stands. Therefore, an analysis of Action 1 of the Organisation for Economic Co-operation and Development’s Base Erosion & Profit Shifting initiative, that is, the Two-Pillar Solution as well as the European Union’s Significant Digital Presence and Digital Services Tax proposals are analysed along with their 2021 counterparts. In addition to this, attention is given to the 7th and 8th amendments to the Directive on Administrative Cooperation, given their significant development to the capabilities and obligations of the EU’s competent authorities to communicate with one another.