Following the first position paper published in 2017 November, on March 13, 2018, the British government updated the position paper to reflect feedback from stakeholders, explaining in more detail how the government thinks this challenge can be solved. On the same day, the government opened a public consultation on how to tax digital economy effectively with the assistance of digital platforms.
At Autumn Budget, the government sets out its initial position on the digital taxation issue. The government found that the current tax system has not kept pace with business model changes in digital context and action is needed. The updated paper does not look to set out the government’s final position on these issues, but sets out the government’s view that:
The updated paper fails to give final solutions to the issue, where UK hopes to find a multilateral solution to this challenge and expects to achieve this with the upcoming OECD report and G20 summit in Argentina.
The government also consults the public on “Online platforms’ role in ensuring tax compliance by their users”. Indeed, the HMRC has taken measures on online platformsin a number of areas, such as measures to combat VAT fraud in online marketplaces, but it also recognises that the opportunities and challengespresented by the growth of online marketplaces extend beyond VAT. In the consultation, 14 questions are listed to seek for feedbacks, regarding understanding the current landscape and other countries and potential approaches. Feedbacks should be sent by June 8, 2018.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):