A Preliminary Assessment of the EU Proposal on Significant Digital Presence: A Brave Attempt that Requires and Deserves Further Analysis

Almudí Cid, J.M; Ferreras Gutiérrez, J.; Hernández González-Barreda, P. (2018): Combating Tax Avoidance in the EU: Harmonisation and Cooperation in Direct Taxation (Alphen aan den Rijn: Kluwer Law International 2019)

44 Pages Posted: 19 Jun 2018 Last revised: 11 Jun 2019

See all articles by Eva Escribano

Eva Escribano

Universidad Complutense de Madrid

Date Written: January 1, 2019

Abstract

The present book chapter seeks to analyze the content of the proposal for Directive launched by the European Commission in March 21st 2018 on the new threshold on significant digital presence that is expected to complement the current permanent establishment concept. It aims to accomplish the following three objectives. Firstly, identify the alleged policy objectives underlying the proposal and further analyze whether it effectively serves to accomplish such objectives. Secondly, analyze the suggested rule so as to anticipate the risks that may arise if implemented in its current form (from the perspective of its interpretation, administration and auditing, inter alia). Thirdly, put forward a number of suggestions that may help mitigate the aforementioned risks or else improve the proposal in some other ways.

Note: A reviewed and updated version of this paper will be published in the referred collective book. Comments and feedback are more than welcome.

Keywords: significant digital presence, permanent establishment, digital economy, tax treaties, EU OECD

Suggested Citation

Escribano, Eva, A Preliminary Assessment of the EU Proposal on Significant Digital Presence: A Brave Attempt that Requires and Deserves Further Analysis (January 1, 2019). Almudí Cid, J.M; Ferreras Gutiérrez, J.; Hernández González-Barreda, P. (2018): Combating Tax Avoidance in the EU: Harmonisation and Cooperation in Direct Taxation (Alphen aan den Rijn: Kluwer Law International 2019), Available at SSRN: https://ssrn.com/abstract=3191787 or http://dx.doi.org/10.2139/ssrn.3191787

Eva Escribano (Contact Author)

Universidad Complutense de Madrid ( email )

Carretera de Humera s/n
Madrid
Spain

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