‘The Evolving ‘Thunder’: The Challenges Around Imposing the Digital Tax in Developing African Countries
This paper addresses the challenges of taxing the digital economy and offers potential solutions towards aligning the digital economy by redefining the tax rules governing traditional businesses. The methodology employed is purely descriptive and explanatory highlighting specific countries and their approach to taxing the digital economy. The literature addressed in the paper focuses on recent government responses in highlighting the problem with digital taxation and identifying the key areas requiring policy recommendations, which the paper then offers to provide. Although several academic works have addressed the challenges of taxing the digital economy, there has been little systematic description on what policy recommendations ought to be made that would provide an effective template for developing African countries to rely on in enacting their own laws. This paper amends this omission.
Ainsworth, Richard (2016). Sales Suppression: The International Dimension. 65 AM. U.L. REV. 1241
Aslam, Aqib and Alpa. Shah (2017). Taxation and the Peer-to-Peer Economy. IMF Working Paper WO/17/187.
BEIS, ‘The characteristics of those in the gig economy – Final Report’ (February 2018) BEIS Research Paper: 2018 no. 2, at 4. Work and Pensions Committee, ‘Self-employment and the gig economy’ (26th April 2017).
Ben-Itzhak (2008). Organized cybercrime. ISSA Journal (October).
Berg (2014). Zappers: what’s new in electronic sales suppression [PDF File]. Federation of Tax Administrators.
Brito, Jerry and Andrea Castillo (2013). “Bitcoin: A Primer for Policymakers.” Mercatus Center, George Mason University, Fairfax, Virginia, United States.
China’s New Import Tax Polices for Cross-border E-commerce worth the attention of the whole industry, Issue 14, March 2016 https://home.kpmg.com/content/dam/kpmg/pdf/2016/04/china-tax-alert-14-cross-border-ecommerce.pdf
Ciancaglini, Vincenzo, Marco Balduzzi, Robert McArdle and Martin Rosler (2015). “Below the Surface: Exploring the Deep Web.” TrendMicro, Forward-Looking Threat Research Team.
Cisco (2011). Cisco 2010 annual security report. Highlighting global security threats and trends.
Corkery, Jim., Jay Forder, Enrico Mercuri, and Dan Svantesson (2013). Taxes, The Internet and The Digital Economy. Revenue Law Journal, Vol. 23, Iss. 1.
Decree No. 2017-1364 of 20 September 2017 laying down the entry into force of the provisions of Article 30(III) of Act No. 2013-1279 of 29 December 2013 amending the 2013 budget and Article 56 (I) to (III) of Act No. 2016-1918 29 December 2016 amending the 2016 budget, published in issue no. 0221 of the Official Journal (JORF) on 21 September 2017
Dhalman, Carl, Sam Mealy and Martin Wermelinger (2016). Harnessing the Digital Economy for Developing Countries. Working Paper No. 334. DEV/DOC/WKP(2016). OECD
ESET (2010). Cybercrime Coming of Age. White paper.
European Commission (2018). Communication from the Commission to the European Parliament and the Council. Brussels, 21.3.2018 COM. 146 Final.
Excise Duty (Amendment) (No.2) Act, 2018
EY, Global Tax Alert, Saudi Arabian tax authorities introduce virtual service PE concept. 30 July 2015 https://www.ey.com/gl/en/services/tax/international-tax/alert--saudi-arabian-tax-authorities-introduce-virtual-service-pe-concept
Federal Bureau of Investigation (2012). “Bitcoin Virtual Currency: Intelligence Unique Features Present Distinct Challenges for Deterring Illicit Activity.” April 24.
Ghosh, Amitava (2012). How to prevent fraud in the Indian telecom industry. Journal of Advanced Analytics 3Q:18.
Gupta, S. India: Equalisation Levy – Genesis, Provisions And Interpretation Issues, 11 July 2017 http://www.mondaq.com/india/x/602428/Social+Media/Equalisation+Levy+Genesis+Provisions+And+Interpretation+Issues
Harpaz, Joe (2014). Digital Economy Raises Serious Questions for Global Tax Policy. Forbes.
Hadzhieva, Eli (2016). Tax Challenges in the Digital Economy. European Parliament.
Highfield, Richard (2017). Globalisation and Digital Impacts in the Region and Some Related Tax Matters. Presentation at the Taxation of the Digital Economy Seminar. Asian Development Bank Institute, Tokyo. 21–24 August.
Huws, Ursula (2014). The Cybertariat Comes of Age: Labour in the Global Digital Economy. Monthly Review Press, New York, 2014.
iDefence (2006). Money Mules: Sophisticated Global Cyber Criminal Operations. iDefense, A VeriSign Company.
ITU (2016). ICT Facts and Figures 2016. Geneva: International Telecommunication Union.
Jardine (2015). Global Cyberspace Is Safer than You Think: Real Trends in Cybercrime. Chatham House, Global Commission on Internet Governance. Paper Series: NO. 16 — July 2015.
Jones, Ben, Susan Seabrook, Sebastiano Sciliberto, Georgina Jones (2018). Taxing the Digital Economy; The Unilateral Approach. Tax Journal. Issue 1389.
Kharouni, Loucif (2012). The Crimeware Evolution. Trend Micro Incorporated Research Paper 2012.
KPMG. China Tax Alert.
Kuek, Siou Chew, Cecilia M Paradi-Guilford, Toks Fayomi, Saori Imaizumi, Panos Ipeirotis (2015). The Global Opportunity in Online Outsourcing. World Bank Group Report.
Law 27 December 2017, n. 205, Bilancio di previsione dello Stato per l'anno finanziario 2018 e bilancio pluriennale per il triennio 2018-2020. (17G00222) (GU Serie Generale n.302 del 29-12-2017 - Suppl. Ordinario n. 62) (reviewed by: Orbitax, The Tax Hub, https://www.orbitax.com/news/archive.php/Review-of-Italy%27s-2018-Budget--29713
Law on Regulation of Content Published on the Internet (Act No. 5651); Regulation on Content Published on the Internet.
Lehdonvirta, Vili (2016). Algorithms that divide and unite: delocalisation, identity and collective action in ‘microwork’. In Space, Place and Global Digital Work, Vili Lehdonvirta (ed.). Oxford: Palgrave Macmillan.
Li, Jinyan (2014). Protecting the Tax Base in the Digital Economy. Paper No. 9. United Nations Department of Economic and Social Affairs.
McIntosh-Watt (2017). BEPS Update. Presentation at the Taxation of the Digital Economy Seminar. Asian Development Bank Institute, Tokyo. 21–24 August;
Morris, W., Bob van der Made, Dewar, C., and Maaskant, M (2017). EU Commission on Digital Economy Taxation. Journal of International Taxation, Vol. 28, Issue 12.
Nouri, Hossien (2018). The Use of Zappers by Financial Terrorists. Journal of Forensic & Investigative Accounting, Vol 10, Issue 2.
OECD (2018). Tax Challenges Arising from Digitalisation – Interim Report 2018.http://www.oecd.org/ctp/tax-challenges-arising-from-digitalisation-interim-report-9789264293083-en.htm
OECD (2015). OECD/G20 Base Erosion and Profit Shifting Project 2015 Final Reports. Executive Summaries. http://www.oecd.org/ctp/beps-reports-2015-executive-summaries.pdf
Page, John & Abebe Shimeles (2015). Aid, employment and poverty reduction in Africa. African Development Review, 27(S1), 17-30.
PRESS STATEMENT BY THE CHIEF GOVERNMENT SPOKESPERSON ON THE DECISIONS MADE BY CABINET AT THE 12TH CABINET MEETING HELD AT STATE HOUSE ON MONDAY, 12TH AUGUST, 2018 https://www.lusakatimes.com/2018/08/13/zambia-slaps-a-30-ngwee-a-day-tariff-on-internet-phone-calls/
PwC (2016). Industry 4.0: Building the Digital Enterprise
PWC, Tax Transparency in Australia. The current state of play. 29 March 2018. https://www.pwc.com.au/tax/taxtalk/assets/alerts/tax-transparency-australia-29mar18.pdf
PWC. Taiwan Tax Update. January 2018. https://www.pwc.tw/en/publications/taiwan-tax-updates/assets/taiwan-tax-update-201801.pdf
Ramalingam, Ben (2016). Can Digital Jobs Solve Africa's Unemployment Crisis. Institute of Development Studies.
Regulations of the Act XXII of 2014 on Advertisement Tax [AT Act], Key Rules on Advertisement Tax, 2017 https://en.nav.gov.hu/data/cms442102/66___KEY_RULES_ON_ADVERTISEMENT_TAX_2017_08092017.pdf
Rifat, Azam (2013). ‘The Political Feasibility of a Global E-Commerce Tax. 43 The University of Memphis Law Review 2.
Robert, E Litan (2017). Work of the Task Force on the Digital Economy. Presentation at the Taxation of the Digital Economy Seminar. Asian Development Bank Institute, Tokyo. 21–24 August.
Samani, Raj (2013). Digital Laundry. An analysis of online currencies, and their use in cybercrime. White Paper, McAfee Labs.
Schmidt, Eric and Jared Cohen (2014). The New Digital Age: Reshaping the Future of People, Nations and Business. John Murray, London.
SecureWorks (2014). Underground Hacker Markets.
Szczepanski, M (2018). Interim Digital Services Tax on Revenues from Certain Digital Services. European Parliament Briefing. European Parliamentary Research Service.
Tax Executives Institute, BEPS Action 1 Digital Economy, 13 April 2014.
The Standard, 10 September 2018, Taxi hailing app strictly for women launched.
The Electronic Postal Communications (online content) Regulations, 2018
Thomason (2009). How has the establishment of the internet changed the ways in which offenders launder their dirty money? In Internet Journal of Criminology.
Tropina, Tatiana (2013). Organised Crime in Cyberspace. In Transnational Organized Crime. Analyses of a Global Challenge to Democracy. Bielefeld, Transcript Verlag, edited by Heinrich-BöllStiftung and Regine Schönenberg, pp. 47–60.
Tungboriboonrat, C (2017). The Impact of the Digital Economy on Taxation: “Adapt or Die” A Perspective from Thailand. Presentation at the Taxation of the Digital Economy Seminar. Asian Development Bank.
Trading Economics (2017). Unemployment rates.
UNCTAD (2015). Information Economy Report 2015: Unlocking the Potential of E-Commerce for Developing Countries. United Nations, New York and Geneva.
UNECA (United Nations Economic Commission for Africa). 2015. Illicit Financial Flows. Report of the High Level Panel on Illicit Financial Flows from Africa.
Van Belle, Jean-.Paul, and Selina Mudavanhu (2018). Digital Labour in Africa: A Status Report. Paper No. 5 Centre for Development Informatics Global Development Institute, SEED.
Weaver (2005). Modern Day Money Laundering: Does the Solution Exist in an Expansive System of Monitoring and Record Keeping Regulations? Annual Review of Banking & Financial Law 24: 443–465
World Economic Forum (WEF) (2016). The Fourth Industrial Revolution: What It Means, How to Respond.
World Economic Forum (2017). The Africa Competitiveness Report 2017: Addressing Africa’s Demographic Dividend.
- There are currently no refbacks.