Taxation, Data and Destination : : An Analysis of Destination-Based Taxation from the Perspective of Tax Principles and Data Protection Regulation.

• Superior document: IBFD Doctoral Series ; v.64
• Author: Sinnig, Julia.
• Place / Publishing House: Amsterdam : : IBFD Publications USA, Incorporated,, 2022.; Ã2022.
• Year of Publication: 2022
• Edition: 1st ed.
• Language: English
• Series: IBFD Doctoral Series
• Physical Description: 1 online resource (401 pages)

The book analyzes two destination-based corporate tax models, their application to different types of digitalized business models, and their compliance with tax and data protection law frameworks.

Table of Contents

• Cover
• IBFD Doctoral Series
• Title
• Copyright
• Table of Contents
• Disclaimer
• Acknowledgements
• List of Abbreviations
• Chapter 1: Introduction
• 1.1. Presentation of the topic and problems
• 1.1.1. Challenges of the digitalized economy
• 1.1.2. Tax concerns triggered by digital activities
• 1.1.3. Requirements for a tax solution
• 1.2. Questions and objectives guiding this research
• 1.2.1. Research question
• 1.2.2. State of the art and merit of the research
• 1.2.3. Delimitation of the research and methodology
• 1.3. Structure of the book
• Chapter 2: The Destination-Based Corporate Tax Proposals
• 2.1. Introduction
• 2.2. A broader DBCT: The DBCFT
• 2.2.1. Rationale behind the DBCFT
• 2.2.2. Personal and objective scope and taxable base of the DBCFT
• 2.2.3. Territorial scope: Destination basis
• 2.2.4. Preliminary justification of the DBCFT to respond to digital tax challenges
• 2.3. The proposed solution: The DDBCT
• 2.3.1. Rationale behind the DDBCT
• 2.3.2. Characteristics of the DDBCT
• 2.3.2.1. Personal and objective scope
• 2.3.2.1.1. Digitalized goods or services, including goods and services provided through digitalized means
• 2.3.2.1.2. User data
• 2.3.2.1.3. User participation
• 2.3.2.2. Territorial scope: Destination basis
• 2.3.2.2.1. Definition of destination
• 2.3.2.2.2. Localizability of the four options
• 2.3.2.3. Taxable base and tax rate
• 2.3.2.4. The use of thresholds
• 2.3.3. Preliminary justification of the DDBCT to answer the digital tax challenges
• 2.3.4. Distinguishing the DDBCT from other proposals
• 2.4. Conclusion
• Chapter 3: The Reality of the Digitalized Economy: Practical Issues Deduced from Business Models
• 3.1. Introduction
• 3.2. Historic context of the discussion on the tax challenges of digitalized business models
• 3.3. E-commerce.
• 3.3.1. Definition of e-commerce
• 3.3.2. Personal data and user participation in e-commerce
• 3.3.3. Tax treatment of e-commerce
• 3.3.3.1. Taxation today: Application of articles 7 and 5 of the OECD Model
• 3.3.3.2. Taxation under DDBCT and DBCFT
• 3.3.4. Interim conclusion on the taxation of e-commerce
• 3.4. Intermediation services/digital multi-sided markets
• 3.4.1. Definition of intermediation services/digital multi-sided markets
• 3.4.1.1. Online market places and online brokerage services
• 3.4.1.2. Online advertising
• 3.4.1.2.1. Classification of online advertising
• 3.4.1.2.2. Defining the functioning of online advertising
• 3.4.1.2.3. Examples: Google and Facebook's advertising models
• 3.4.1.3. Online gaming
• 3.4.2. Personal data and user participation in intermediation services and their location
• 3.4.2.1. Online market places and online brokerage services
• 3.4.2.2. Online advertising
• 3.4.2.3. Online gaming
• 3.4.3. Tax treatment of intermediation services
• 3.4.3.1. Taxation today
• 3.4.3.1.1. Online market places and online brokerage services: Articles 7 and 5 of the OECD Model and article 12A of the UN Model
• 3.4.3.1.2. Online advertising network intermediaries: Articles 7 and 5 of the OECD Model
• 3.4.3.1.3. Online gaming: Articles 7, 5 and 12 of the OECD Model
• 3.4.3.2. Taxation under DDBCT and DBCFT
• 3.4.3.2.1. Online market places and online brokerage services
• 3.4.3.2.2. Online advertising intermediary services
• 3.4.3.2.3. Online gaming services
• 3.4.4. Interim conclusion on the taxation of intermediation services/digital multi-sided markets
• 3.5. Cloud computing
• 3.5.1. Definition of "cloud computing"
• 3.5.2. Personal data and user participation in cloud computing
• 3.5.3. Tax treatment of cloud computing.
• 3.5.3.1. Taxation today: Articles 7, 5, 12 and 13 of the OECD Model and article 12A of the UN Model
• 3.5.3.2. Taxation under DDBCT and DBCFT
• 3.5.4. Interim conclusion on the taxation of cloud computing
• 3.6. Conclusion
• 3.6.1. Delimitation of digitalized business models and reliance on personal data and user participation
• 3.6.2. Current taxation of business models: Application of articles 7, 5 and 12 of the OECD Model and article 12A of the UN Model
• 3.6.3. Conclusion on issues regarding the application of DBCFT and DDBCT to the examined business models
• 3.6.3.1. Definition of the "user"
• 3.6.3.2. Definition of the "destination"
• 3.6.3.3. Open issues with DBCFT and DDBCT
• 3.6.3.3.1. Localization of users under DDBCT
• 3.6.3.3.2. Association of cash flows with non-paying users under DBCFT
• Chapter 4: Compatibility of a DBCT with DTCs, EU Law and WTO Law
• 4.1. Introduction
• 4.2. Compatibility with DTCs
• 4.2.1. Scope of application of DTCs: Requirements of articles 1-4 of the OECD Model
• 4.2.1.1. Articles 1, 3 and 4 of the OECD Model: Personal scope of application
• 4.2.1.2. Objective scope of application of article 2 of the OECD Model: Taxes covered
• 4.2.1.2.1. Wording of article 2(1) and (2) of the OECD Model and the definition of "income"
• 4.2.1.2.2. The distinction between direct and indirect taxes: Turnover and cash flow as taxable bases
• 4.2.1.2.3. Article 2(3) and (4) of the OECD Model: Listed and "identical or substantially similar" taxes
• 4.2.1.2.4. The system of DTCs: Congruence of the regulatory framework of DTCs and destination based taxes
• 4.2.1.2.5. The role of legislative intent for the qualification as a tax covered under article 2 of the OECD Model
• 4.2.1.2.6. Other design features impacting the qualification of taxes as "taxes covered"
• 4.2.1.3. Interim conclusion.
• 4.2.2. Relevance of DTCs if DDBCT and DBCFT are not covered by them
• 4.2.2.1. Application of articles 26 and 27 of the OECD Model and reflections on the allocation of taxing powers
• 4.2.2.2. Requirements set by article 24(1) of the OECD Model: Non-discrimination
• 4.2.3. Alternative result: DTCs are applicable to DBCFT and DDBCT - Potential conflicts with substantive DTC provisions
• 4.2.3.1. Principal conflicting provisions: Articles 7 and 5 of the OECD Model
• 4.2.3.2. Other conflicting provisions
• 4.2.3.3. Difficulties in the application of article 23A and B of the OECD Model: Double taxation relief
• 4.2.3.4. Relevance of article 25 of the OECD Model: Mutual agreement procedure
• 4.2.4. Interim conclusion
• 4.3. Compatibility with EU Law
• 4.3.1. General considerations
• 4.3.2. Competences of Member States and the European Union
• 4.3.3. Primary EU law
• 4.3.3.1. Rules relating to intra-community deliveries of goods
• 4.3.3.1.1. Adoption of a DBCT by a Member State
• 4.3.3.1.2. Adoption of a DBCT by the European Union
• 4.3.3.2. Fundamental freedoms
• 4.3.3.2.1. Adoption of a DBCT by a Member State
• 4.3.3.2.1.1. The sectoral application of the DDBCT
• 4.3.3.2.1.2. Turnover as the tax basis of the DDBCT
• 4.3.3.2.1.3. The border tax adjustment of the DBCFT
• 4.3.3.2.2. Adoption of a DBCT by the European Union
• 4.3.3.3. State aid considerations
• 4.3.3.3.1. Adoption of a DBCT by a Member State
• 4.3.3.3.1.1. The sectoral and turnover-based application of the DDBCT
• 4.3.3.3.1.2. The exemption of exports of both DBCTs and the border tax adjustment of the DBCFT
• 4.3.3.3.2. Adoption of a DBCT by the European Union
• 4.3.4. Secondary EU law
• 4.3.4.1. Compliance with the VAT Directive
• 4.3.4.2. Compliance with the Parent-Subsidiary Directive
• 4.3.5. Interim conclusion
• 4.3.5.1. Primary EU law.
• 4.3.5.2. Secondary EU law
• 4.4. Compatibility with WTO law
• 4.4.1. General considerations on the applicability of WTO law
• 4.4.2. Article III of the GATT and article XVII(1) of the GATS: Treatment of imports
• 4.4.3. Articles XVI(1) of the GATT and 3(1)(a) of the ASCM: Treatment of exports
• 4.4.4. Interim conclusion
• 4.5. Conclusion
• 4.5.1. Application of DTCs to DBCFT and DDBCT
• 4.5.2. Interferences of the DDBCT and DBCFT with EU law
• 4.5.3. Interference of the DDBCT and DBCFT with WTO law
• Chapter 5: Compatibility of DDBCT and DBCFT with Data Protection Standards and Related Fundamental Rights
• 5.1. Introduction
• 5.2. The scope of data collection at stake under DBCFT and DDBCT
• 5.3. Application of the Charter
• 5.3.1. General considerations regarding the applicability of the Charter
• 5.3.2. Lessons to be learned on the restriction of data protection rights granted by the Charter
• 5.3.3. Interim conclusion
• 5.4. Application of the GDPR
• 5.4.1. General considerations
• 5.4.2. Scope of application of the GDPR and its limits
• 5.4.2.1. Material and territorial scope of application of the GDPR
• 5.4.2.1.1. Material scope of application of the GDPR
• 5.4.2.1.2. Territorial scope of application of the GDPR
• 5.4.2.2. Limits to the scope of application of the GDPR
• 5.4.2.2.1. Article 2(2)(a) of the GDPR
• 5.4.2.2.2. Article 2(2)(d) of the GDPR
• 5.4.2.2.3. Interim conclusion
• 5.4.3. Substantive provisions of the GDPR potentially affected
• 5.4.4. Carve-out from the rights protected by the GDPR
• 5.4.5. Articles 5(1)(b) and 6(1)(e) of the GDPR: Purpose limitation
• 5.4.6. Article 11 of the GDPR: Limited obligations under the GDPR if data are pseudonymized
• 5.4.7. Interim conclusion
• 5.5. Application of the ECHR
• 5.5.1. General considerations regarding the applicability of the ECHR.
• 5.5.2. Lessons to be learned on the restriction of data protection rights granted by the ECHR.