City Research Online

Abstract

This chapter evaluates the planned imposition of digital services taxes (DSTs) by several countries in response to the perceived under-payment of tax by some of the world's largest technology companies which operate transnationally on the internet and consequently manage to minimize their tax burden even in jurisdictions where they have a significant commercial presence. Taking the generic features of numerous DSTs, this chapter considers whether the proposed taxes, many of which have been postponed pending the conclusion of a global treaty, are compatible with World Trade Organization (WTO) law, notably the principle of national treatment contained in the GATS (General Agreement on Trade in Services). The chapter further explores whether DSTs, as conceived, could fit within one of the general exceptions to the GATS, such as the expansive 'public order' or the more specific, but arguably inapplicable, entitlement of members to enact measures for imposition or collection of direct taxes. The chapter concludes by considering whether, as impediments to international trade, the policy objective behind DSTs might be better addressed by other interventions, such as competition law.

Publication Type:	Book Section
Additional Information:	This is a draft chapter. The final version is available in Cover Research Handbook on Digital Trade edited by David Collins and Michael Geist published in 2023, Edward Elgar Publishing Ltd: https://doi.org/10.4337/9781800884953
Publisher Keywords:	Digital services taxes; World Trade Organization; General Agreement on Trade in Services; National treatment; Non-discrimination; General exceptions
Subjects:	J Political Science > JA Political science (General) J Political Science > JX International law K Law > K Law (General)
Departments:	The City Law School The City Law School > Academic Programmes
SWORD Depositor:	Symplectic Administrator

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