TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Base Erosion and Profit Shifting (BEPS) and CCAB-I submission on the Tax Challenges of the Digital Economy

The OECD BEPS project involves a series of actions, including a study to “Address the Tax Challenges of the Digital Economy”. The OECD recently asked people to comment on how value is created in digital economy industries, on what drives the location of the industries involved, and how are the business models likely to evolve over time. General and specific comments were due by December 22nd 2013. Further information and details are available from the OECD website.

Ireland is heavily involved in the Digital Economy which generates a lot of employment, both because of its Foreign Direct Investment Strategy and because of the success of Irish indigenous start-up ventures on the world stage.

The OECD is to finalise its report by September 2014. The specific areas for comment were:

A. Nature of work/activities undertaken by your organisation

A.1. Please describe the background of your organisation, including the nature of the work or activities performed.

B. Impact of information and communication technology on the activities of the organisation

B.1. Please provide a detailed description of the business models that have emerged in the context of the digital economy due to advances in information and communications technology. Please also describe briefly the technology deployed.

B.2. How do these models leverage new technology to change organisational structures and supply chains?

B.3. In each of the business models identified, what assets and activities contribute to the generation of value?

B.4. How has new technology impacted the way and the location in which value is created or monetised under these business models?

B.5. How have changes in underlying business models impacted the way in which business is organized as a legal or tax matter?

B.6. What challenges do digital economy players face in determining their tax liability from a corporate income tax and VAT/GST perspective?

B.7. How do you see business models and supply chains evolving in the future due to advances in information technology?

The OECD also requested “any additional information that you would consider useful in identifying the challenges that the digital economy poses for the application of existing international tax rules.”

Chartered Accountants Ireland, as part of CCAB-I made a submission to the OECD in relation to the above. The response is published in full here.