This document discusses the prospect and challenges of digital taxes in the 21st century. It begins with an introduction of Professor Godwin Oyedokun and the context of a tax conference presentation. The document then defines digital services, describes different types of digital taxes including services taxes and consumption taxes. It discusses international developments in taxing digital services and outlines both prospects and challenges of taxing the digital economy, such as issues around simplicity, transparency, neutrality and stability. The document concludes with recommendations for effective digital taxation policies.
Vat Compliance Cost for SMEs in Algeria: Burden,Complexity and Business FactorsQUESTJOURNAL
Abstract: This study investigates the cost of compliance for VAT in Algeria. Specifically, it examines the burden of VAT compliance cost by the small and medium enterprises (SMEs) in Algeria, the complexity of the VAT law and its compliance, and the business factors affecting VAT compliance cost.This study used questionnaire survey to collect data from the respondents for the purpose of investigating the VAT compliance cost. Thisstudy focuses on the SME operators within Adrar State in Algeria. The results of the study show that majority of the respondents think that VAT compliance cost is a burden to their company and VAT law is complex and costly for them. The high cost of compliance can discourage voluntarily compliance among owners of the SMEs. This study also reveals that business location of the SMEs does not affect their compliance cost. On the other hand, business size, business type and external advisors affect the compliance cost of the SMEs. In Algeria, SMEs are the backbone of the economy. However, the high compliance cost for this sector can discourage investors to invest in SMEs. Therefore, the government needs to review the tax policy, structure and legislation, and tax administration with a view toreduce the tax compliance cost for VAT specifically for the SMEs in Algeria.
Effect of E Taxation on Revenue Generation in Anambra Stateijtsrd
This study assessed the effect of e taxation on revenue generation in Anambra state. Specifically, the study intends to examine the effect of e taxation on tax revenue generation in Anambra state determine whether the adoption of e taxation has reduced tax malpractice in Anambra state and ascertain the tax revenue improved based on the e taxation adoption in Anambra state. Survey design was employed. Data collected were analyzed and one sample t test was used to test the formulated hypotheses. The study found that E taxation has effect on tax revenue generation in Anambra state and adoption of e taxation has reduced tax malpractice in Anambra state. Another finding is that tax revenue has improved based on the adoption of e taxation in Anambra state. Based on this, the researchers recommended among others that well equipped database on tax payers should be established by the governments with the aim of identifying all possible sources of income of tax payers for tax purpose. John-Akamelu Chitom R. | Iyidiobi Felicia C. ""Effect of E-Taxation on Revenue Generation in Anambra State"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-3 , April 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23520.pdf
Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/23520/effect-of-e-taxation-on-revenue-generation-in-anambra-state/john-akamelu-chitom-r
This study presents an overview of current research on the relationship between trade globalization and informal jobs in developing economies. Based on existing academic literature and complemented by new research by the ILO and WTO, this report discusses the impact of trade reforms on different dimensions of informal employment. Various transmission mechanisms are discussed, setting results from country studies against international comparisons. The volume analyses the policies necessary for countries with large informal economies to take advantage of trade reforms and maximize the benefits from international trade. It discusses the obstacles created by high informality rates to translating trade openness into sustainably higher long-term growth rates. The book focuses on the connections between trade, labour and social policies, creating conditions for countries to successfully integrate into the world economy. It will be of interest to all those who are involved in this debate, in particular trade specialists, economists, policy-makers, employers and trade unions.
The Informal Economy: Is formalization the answer? by Martha ChenKRInstitute
On 7th January 2019, KRI invited Professor Martha Chen to the seventh KRI Brown Bag Seminar to present on the topic ‘The informal economy: Is formalisation the answer?’.
Vat Compliance Cost for SMEs in Algeria: Burden,Complexity and Business FactorsQUESTJOURNAL
Abstract: This study investigates the cost of compliance for VAT in Algeria. Specifically, it examines the burden of VAT compliance cost by the small and medium enterprises (SMEs) in Algeria, the complexity of the VAT law and its compliance, and the business factors affecting VAT compliance cost.This study used questionnaire survey to collect data from the respondents for the purpose of investigating the VAT compliance cost. Thisstudy focuses on the SME operators within Adrar State in Algeria. The results of the study show that majority of the respondents think that VAT compliance cost is a burden to their company and VAT law is complex and costly for them. The high cost of compliance can discourage voluntarily compliance among owners of the SMEs. This study also reveals that business location of the SMEs does not affect their compliance cost. On the other hand, business size, business type and external advisors affect the compliance cost of the SMEs. In Algeria, SMEs are the backbone of the economy. However, the high compliance cost for this sector can discourage investors to invest in SMEs. Therefore, the government needs to review the tax policy, structure and legislation, and tax administration with a view toreduce the tax compliance cost for VAT specifically for the SMEs in Algeria.
Effect of E Taxation on Revenue Generation in Anambra Stateijtsrd
This study assessed the effect of e taxation on revenue generation in Anambra state. Specifically, the study intends to examine the effect of e taxation on tax revenue generation in Anambra state determine whether the adoption of e taxation has reduced tax malpractice in Anambra state and ascertain the tax revenue improved based on the e taxation adoption in Anambra state. Survey design was employed. Data collected were analyzed and one sample t test was used to test the formulated hypotheses. The study found that E taxation has effect on tax revenue generation in Anambra state and adoption of e taxation has reduced tax malpractice in Anambra state. Another finding is that tax revenue has improved based on the adoption of e taxation in Anambra state. Based on this, the researchers recommended among others that well equipped database on tax payers should be established by the governments with the aim of identifying all possible sources of income of tax payers for tax purpose. John-Akamelu Chitom R. | Iyidiobi Felicia C. ""Effect of E-Taxation on Revenue Generation in Anambra State"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-3 , April 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23520.pdf
Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/23520/effect-of-e-taxation-on-revenue-generation-in-anambra-state/john-akamelu-chitom-r
This study presents an overview of current research on the relationship between trade globalization and informal jobs in developing economies. Based on existing academic literature and complemented by new research by the ILO and WTO, this report discusses the impact of trade reforms on different dimensions of informal employment. Various transmission mechanisms are discussed, setting results from country studies against international comparisons. The volume analyses the policies necessary for countries with large informal economies to take advantage of trade reforms and maximize the benefits from international trade. It discusses the obstacles created by high informality rates to translating trade openness into sustainably higher long-term growth rates. The book focuses on the connections between trade, labour and social policies, creating conditions for countries to successfully integrate into the world economy. It will be of interest to all those who are involved in this debate, in particular trade specialists, economists, policy-makers, employers and trade unions.
The Informal Economy: Is formalization the answer? by Martha ChenKRInstitute
On 7th January 2019, KRI invited Professor Martha Chen to the seventh KRI Brown Bag Seminar to present on the topic ‘The informal economy: Is formalisation the answer?’.
General Perception of Self Employed Nigerian on Tax Aviodance and Evasion A S...ijtsrd
The aim of this study is to study the range of tactics used by various self employed Nigerian in tax avoidance and evasion scheme. To achieve these objectives, we examine literature on the aforementioned issues and questionnaire was draft base on the research question and hypothesis formulated. The statistical tools of Spearman Rank Order Correlation was used to estimate the correlations of the sampled groups in two state of the federations, Anambra and Delta, and relationships between tax avoidance and evasion and the independent variables. Results reveal that respondents are of the opinion that tax evasion is ethical sometimes, and that significant relationship exists between the ethical view, mode of tax administration and cultural practices of the self employed and tax avoidance and evasion. It is therefore recommended that authorities should constantly review tax rates to reflect prevailing economic realities, be accountable, and ensure that necessary assistance is provided at all times to self employed in terms of incentive. Onakeke, Newman "General Perception of Self Employed Nigerian on Tax Aviodance and Evasion; A Study of Anambra and Delta State" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-3 , April 2020, URL: https://www.ijtsrd.com/papers/ijtsrd30381.pdf Paper Url :https://www.ijtsrd.com/management/accounting-and-finance/30381/general-perception-of-self-employed-nigerian-on-tax-aviodance-and-evasion-a-study-of-anambra-and-delta-state/onakeke-newman
IMPACT OF TAX REVENUE ON ECONOMIC GROWTH IN RWANDA FROM 2007-2017.Nzabirinda Etienne
Rwanda is working tirelessly to achieve economic growth and development. Taxation effective is the one tool to promote and to accelerate economic growth and development, several studies analyses the impact of tax on economic growth and economic development.
The objective of this study is to investigate the impact of tax revenue on economic growth in Rwanda from 2007-2017. Secondary data were sourced from Rwanda Revenue Authority (RRA) and National Institute of statistics of Rwanda (NISR) for the period spanning from 2007Q1-2017Q4. Descriptive data analysis was used and the variable considered here are: Gross domestic product (GDP) as proxy for economic growth, direct tax (DT), Tax on goods and services (TGS) and Tax on international trade and transaction (TITT). Significant literature review for this study is available.
The results of the unit root and the co-integration tests revealed that all variables are integrated of order one, I(1) and Johensen cointegration test indicate existence of a long-run equilibrium relationship among variables included in the model and we use also Vector Error Correction Model (VECM) estimation method for data analysis to estimate for short run result. The empirical findings showed that direct tax(DT)and tax on goods and services(TGS) variables have positive at 0.1631 to 0.60 31 respectively impact on economic growth, while Tax on international trade and transactions(TITT) variable has negative at -0.005913 and it impacts on economic growth.
This study recommends that the policymakers within government of Rwanda must improve both direct tax and tax on goods and services (domestic tax) and increase Taxes on international trade transactions (customs duties), it will harm economic growth of Rwanda therefore custom duties must be rationally reduced or abolished and free trade zones like Africa continental free trade area (AfCFTA) must create to foster increased exchange of goods and services across borders.
Key Words: Tax Revenue, economic growth, Gross domestic product, direct tax, tax on goods and services, tax on international trade and transaction, VECM, Rwanda
Financial Statements Analysis: Wealth Creation and Wealth Maximisation at Tel...iosrjce
Information technology revolution has gained popularity with companies’ success depending
virtually on the exchange of information. As a result, it has brought to consideration the need to create and
sustain technologies through which information can be transmitted and received, and the telecommunication
industry has been a major development. The research paper seeks to analyse the financial statements of a
telecom company to determine whether the company created wealth and suggesting ways to improve wealth
creation. Factors such as operational results, key economic variables and customer satisfaction were explored.
A questionnaire survey was employed to collect primary data. The questionnaires were distributed by hand and
some were emailed. Results of the survey were reported and customer suggestions and concerns were noted.
Secondary data was obtained from the financial statements as well as operational reviews available on the
website. Data was analysed and it was discovered that the company has revolved significantly and its
performance has improved over the years. However, it was highlighted that a lot still needs to be done.
Therefore recommendations to pave way for future studies have been suggested.
Creative Accounting Dynamics and Financial Reporting Quality in Public Corpor...YogeshIJTSRD
The public corporations are pivotal institutions that are vehicle used by the government to lubricate an economy and engender development. As government owned entity, their activity stimulates the economy of any nation. This paper examines financial statement to investigate the extent to which creative accounting issues in such financial reports had influenced the quality of such report in the public corporations in Nigeria. The study used secondary data from ten selected public corporate entities’ annual reports to rate the influence of creative accounting manipulations or otherwise on factors that influences financial reporting quality. A deductive approach using descriptive survey and inferential statistics were used to reach general conclusions based on the results from the findings. The result shows that application of standards allows for accounting preparer to use discretions given room to either positive or negative impact on financial reporting quality. The study noted that in Nigeria, the annual reports most times show positive growth while the economic reality signs show otherwise. Manipulative behaviours in financial reports in public corporations in Nigeria promotes corruption, destroys the image of the nation, public loss of confidence and negative growth trend. Otse Amos Egwurube "Creative Accounting Dynamics and Financial Reporting Quality in Public Corporations in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-3 , April 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38651.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/38651/creative-accounting-dynamics-and-financial-reporting-quality-in-public-corporations-in-nigeria/otse-amos-egwurube
ANALYSIS OF TAXES PAYMENT, AUDIT QUALITY AND FIRM SIZE TO THE TRANSFER PRICIN...Mercu Buana University
This research is aimed to analyze the effect of tax, audit quality and firm size to an indication of transfer pricing in the manufacturing firm that listed in Indonesia Stock Exchange during the period 2010-2016. Independent variable in this research was tax payment, audit quality and firm size and dependent variable used is transfer pricing policy. This research used secondary data analysis of financial statements or annual reports of firms in Indonesia Stock Exchange. The population of this research is a manufacturing firm in the period 2010-2016. The research using purposive sampling method, the total amount of samples was 133 firms. This research used logistic regression analysis as an analytical method. The results of the analysis in the research showed that tax-effected and significant to an indication of transfer pricing. While auditing quality and firm size not significantly on an indication transfer pricing.
A fantastic PPT on Business Environment. It gives the complete understanding of the concept of the Business Environment, its features, significance and its impact on the Indian Businesses. It also gives a description of LPG Policy 1991 and its impact. You will also find a concept of Demonetiszation.
Doing business is a Valid website for Entrepreneurs which plan to Start a new business and help them to make decisions . It include data and information about infrastructure of the Countries and how ease we can act.
National Tax Gap Minimization and Digital Transformation Solutions for Improved Tax Administration.
Modern TaxTech Solutions For Tax Gaps Reduction and Improved Tax Administration.
Tax gap minimization.
Increased tax revenue collection.
Decreased costs of tax administration.
info@digitaltaxtech.com www.taxtech.digital
Partnering with global tax consultants and top technology providers allows us to provide end-to-end digital tax transformation solutions that are nonintrusive and compatible with existing tax systems and business processes.
Our proven digital tax administration solutions cover the entire fiscal data lifecycle for large and complex national digital transformation projects. We use flexible technology stack enabling easy integration with legacy and third-party systems.
Our team of international experts has experience and knowledge gained from implementation of many nationwide digital transformation projects for tax administrations in various European, CIS, Middle East and African countries.
Implementation of our Digital Tax Administration Solutions can increase VAT collection up to 150%, excise collection up to 700% and move millions of self-employed out of shadows.
The difference between the revenue potential (legal) and the actual revenue collected is the “Tax Gap“.
Sources of the tax gap:
- tax evasion
- tax avoidance due to benefits
- established by law (legal tax gap)
General Perception of Self Employed Nigerian on Tax Aviodance and Evasion A S...ijtsrd
The aim of this study is to study the range of tactics used by various self employed Nigerian in tax avoidance and evasion scheme. To achieve these objectives, we examine literature on the aforementioned issues and questionnaire was draft base on the research question and hypothesis formulated. The statistical tools of Spearman Rank Order Correlation was used to estimate the correlations of the sampled groups in two state of the federations, Anambra and Delta, and relationships between tax avoidance and evasion and the independent variables. Results reveal that respondents are of the opinion that tax evasion is ethical sometimes, and that significant relationship exists between the ethical view, mode of tax administration and cultural practices of the self employed and tax avoidance and evasion. It is therefore recommended that authorities should constantly review tax rates to reflect prevailing economic realities, be accountable, and ensure that necessary assistance is provided at all times to self employed in terms of incentive. Onakeke, Newman "General Perception of Self Employed Nigerian on Tax Aviodance and Evasion; A Study of Anambra and Delta State" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-3 , April 2020, URL: https://www.ijtsrd.com/papers/ijtsrd30381.pdf Paper Url :https://www.ijtsrd.com/management/accounting-and-finance/30381/general-perception-of-self-employed-nigerian-on-tax-aviodance-and-evasion-a-study-of-anambra-and-delta-state/onakeke-newman
IMPACT OF TAX REVENUE ON ECONOMIC GROWTH IN RWANDA FROM 2007-2017.Nzabirinda Etienne
Rwanda is working tirelessly to achieve economic growth and development. Taxation effective is the one tool to promote and to accelerate economic growth and development, several studies analyses the impact of tax on economic growth and economic development.
The objective of this study is to investigate the impact of tax revenue on economic growth in Rwanda from 2007-2017. Secondary data were sourced from Rwanda Revenue Authority (RRA) and National Institute of statistics of Rwanda (NISR) for the period spanning from 2007Q1-2017Q4. Descriptive data analysis was used and the variable considered here are: Gross domestic product (GDP) as proxy for economic growth, direct tax (DT), Tax on goods and services (TGS) and Tax on international trade and transaction (TITT). Significant literature review for this study is available.
The results of the unit root and the co-integration tests revealed that all variables are integrated of order one, I(1) and Johensen cointegration test indicate existence of a long-run equilibrium relationship among variables included in the model and we use also Vector Error Correction Model (VECM) estimation method for data analysis to estimate for short run result. The empirical findings showed that direct tax(DT)and tax on goods and services(TGS) variables have positive at 0.1631 to 0.60 31 respectively impact on economic growth, while Tax on international trade and transactions(TITT) variable has negative at -0.005913 and it impacts on economic growth.
This study recommends that the policymakers within government of Rwanda must improve both direct tax and tax on goods and services (domestic tax) and increase Taxes on international trade transactions (customs duties), it will harm economic growth of Rwanda therefore custom duties must be rationally reduced or abolished and free trade zones like Africa continental free trade area (AfCFTA) must create to foster increased exchange of goods and services across borders.
Key Words: Tax Revenue, economic growth, Gross domestic product, direct tax, tax on goods and services, tax on international trade and transaction, VECM, Rwanda
Financial Statements Analysis: Wealth Creation and Wealth Maximisation at Tel...iosrjce
Information technology revolution has gained popularity with companies’ success depending
virtually on the exchange of information. As a result, it has brought to consideration the need to create and
sustain technologies through which information can be transmitted and received, and the telecommunication
industry has been a major development. The research paper seeks to analyse the financial statements of a
telecom company to determine whether the company created wealth and suggesting ways to improve wealth
creation. Factors such as operational results, key economic variables and customer satisfaction were explored.
A questionnaire survey was employed to collect primary data. The questionnaires were distributed by hand and
some were emailed. Results of the survey were reported and customer suggestions and concerns were noted.
Secondary data was obtained from the financial statements as well as operational reviews available on the
website. Data was analysed and it was discovered that the company has revolved significantly and its
performance has improved over the years. However, it was highlighted that a lot still needs to be done.
Therefore recommendations to pave way for future studies have been suggested.
Creative Accounting Dynamics and Financial Reporting Quality in Public Corpor...YogeshIJTSRD
The public corporations are pivotal institutions that are vehicle used by the government to lubricate an economy and engender development. As government owned entity, their activity stimulates the economy of any nation. This paper examines financial statement to investigate the extent to which creative accounting issues in such financial reports had influenced the quality of such report in the public corporations in Nigeria. The study used secondary data from ten selected public corporate entities’ annual reports to rate the influence of creative accounting manipulations or otherwise on factors that influences financial reporting quality. A deductive approach using descriptive survey and inferential statistics were used to reach general conclusions based on the results from the findings. The result shows that application of standards allows for accounting preparer to use discretions given room to either positive or negative impact on financial reporting quality. The study noted that in Nigeria, the annual reports most times show positive growth while the economic reality signs show otherwise. Manipulative behaviours in financial reports in public corporations in Nigeria promotes corruption, destroys the image of the nation, public loss of confidence and negative growth trend. Otse Amos Egwurube "Creative Accounting Dynamics and Financial Reporting Quality in Public Corporations in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-3 , April 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38651.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/38651/creative-accounting-dynamics-and-financial-reporting-quality-in-public-corporations-in-nigeria/otse-amos-egwurube
ANALYSIS OF TAXES PAYMENT, AUDIT QUALITY AND FIRM SIZE TO THE TRANSFER PRICIN...Mercu Buana University
This research is aimed to analyze the effect of tax, audit quality and firm size to an indication of transfer pricing in the manufacturing firm that listed in Indonesia Stock Exchange during the period 2010-2016. Independent variable in this research was tax payment, audit quality and firm size and dependent variable used is transfer pricing policy. This research used secondary data analysis of financial statements or annual reports of firms in Indonesia Stock Exchange. The population of this research is a manufacturing firm in the period 2010-2016. The research using purposive sampling method, the total amount of samples was 133 firms. This research used logistic regression analysis as an analytical method. The results of the analysis in the research showed that tax-effected and significant to an indication of transfer pricing. While auditing quality and firm size not significantly on an indication transfer pricing.
A fantastic PPT on Business Environment. It gives the complete understanding of the concept of the Business Environment, its features, significance and its impact on the Indian Businesses. It also gives a description of LPG Policy 1991 and its impact. You will also find a concept of Demonetiszation.
Doing business is a Valid website for Entrepreneurs which plan to Start a new business and help them to make decisions . It include data and information about infrastructure of the Countries and how ease we can act.
National Tax Gap Minimization and Digital Transformation Solutions for Improved Tax Administration.
Modern TaxTech Solutions For Tax Gaps Reduction and Improved Tax Administration.
Tax gap minimization.
Increased tax revenue collection.
Decreased costs of tax administration.
info@digitaltaxtech.com www.taxtech.digital
Partnering with global tax consultants and top technology providers allows us to provide end-to-end digital tax transformation solutions that are nonintrusive and compatible with existing tax systems and business processes.
Our proven digital tax administration solutions cover the entire fiscal data lifecycle for large and complex national digital transformation projects. We use flexible technology stack enabling easy integration with legacy and third-party systems.
Our team of international experts has experience and knowledge gained from implementation of many nationwide digital transformation projects for tax administrations in various European, CIS, Middle East and African countries.
Implementation of our Digital Tax Administration Solutions can increase VAT collection up to 150%, excise collection up to 700% and move millions of self-employed out of shadows.
The difference between the revenue potential (legal) and the actual revenue collected is the “Tax Gap“.
Sources of the tax gap:
- tax evasion
- tax avoidance due to benefits
- established by law (legal tax gap)
Tax in Real Time: How Digital Platforms Will Redefine Future Tax Systemsaccenture
We sat down with a wide array of finance experts, from professors to heads of international tax, from around the world –to get their take on the future of tax.
ICC has set out five recommendations to modernize the regulatory and competition framework that would provide protection for consumers while fostering competition, investment and innovation.
A Digital Future - Transforming NSW GovernmentMartin Walsh
This is the Word document version of the Digital Strategy I developed for NSW Government in 2012. It should be read in conjunction with the Presentation version of the strategy - http://www.slideshare.net/martinwalsh/a-digital-future-transforming-nsw-government
Capium provides Cloud based Online Accounting Software for day to day needs of accountants and sme's, allows you to manage payroll, bookkeeping for free.
Resource :- https://www.capium.com
Need, importance and benefits of digitisation of public sector by using digital technologies as an integrated part of its service delivery mechanism cannot be overemphasised.
However, despite recognizing the need for the digitization of public services, governments in the developing countries are not giving it the importance it deserves.
In this presentation, I discuss the four areas to focus, four public policy issues to tackle and four steps to take for putting a country to its long-term trajectory of digital transformation
Newly Proposed UN Article 12B: Income from Automated Digital ServicesDVSResearchFoundatio
Key Takeaways:
- Tax challenges due to Digitalisation and Actions initiated by OECD
- Scope of Article 12B
- Right of Taxation
- Specific Provisions for Non-applicability and Excess Payment
- Comparison with India's Tax Provisions and OECD's Action - Plan I
- Way Forward
In summary, Malaysia needs to:
1.
Create a dynamic and more competitive ecosystem for its digital economy that embodies changes to its infrastructure, regulations, skills and public finance
2.
Achieve universal, fast, and inexpensive internet connectivity for businesses and households and fix the way it regulates the internet so unfair and damaging business practices can be corrected
3.
Improve human capital through better curriculum and life-long learning opportunities and encourage more vibrant private sector finance so digital entrepreneurs can bring ideas to market
4.
Take measures that will safeguard future tax revenues from the digital economy to reinvest in areas that the economy needs most
Digitization
Digital technologies are used to enhance processes, goods, and services through digitalization. It entails integrating digital technologies into established procedures in order to boost productivity, cut costs, and enhance customer experiences. Processes can be automated, but digitalization also involves redesigning them to better serve the demands of contemporary society.
The Social Effects of Digitalization
The transformation in how we communicate with one another and the world around us brought about by digitalization has had a significant impact on society. The following are some of the most major societal changes brought about by digitalization:
1. Interaction
Communication between people is now quicker, simpler, and more practical due to digitalization. Real-time communication with people all over the world is now feasible Thanks to social networking platforms, texting apps, and video conferencing equipment.
2. Instruction
Education is now more accessible than ever Thanks to digitalization. People may now learn whenever, wherever, and at their own pace Thanks to online courses, e-learning platforms, and digital textbooks.
3. Medical Care
Healthcare has been significantly impacted by digitalization, which has improved patient outcomes and increased healthcare productivity. Patients can now obtain care remotely and easily access medical information Thanks to electronic health records, telemedicine, and medical applications.
4. Industry
Business operations have changed as a result of digitization, becoming more effective and competitive. With the help of e-commerce platforms, online markets, and digital marketing tools, firms can now reach a larger audience and boost sales.
Advantages of digitization
Numerous advantages of digitization include:
1. Effectiveness
Processes are streamlined by digitization, which makes them quicker and more effective. By reducing the need for manual labor, automation frees up time for other crucial duties.
2. Financial savings
Businesses can save money by using digitalization since it can decrease labor expenses, increase productivity, and do away with paper-based procedures.
3. Enhanced Client Experience
Businesses may now more easily deliver a smooth and customized consumer experience Thanks to digitalization. Businesses can offer specialized goods and services that are tailored to each customer's demands by using consumer data.
4. Enhanced Effectiveness
By automating procedures, cutting down on errors, and streamlining processes, digitization increases efficiency. Cost reductions and increased production result from this.
5. Enhancing Client Experiences
Businesses may now provide personalized experiences that cater to the specific needs and interests of individual customers Thanks to digitalization. Customer loyalty and satisfaction increase as a result.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
Growing Our Digital World In Nigeria: Forensic and Tax Accounting Perspective. Being the 11th Inaugural Lecture of the Lead City University Ibadan, Nigeria. Delivered on April 19, 2021, at Adeline Hall, Lead City University Ibadan. College Press & Publisher, Lead City University Ibadan; ISBN: 978-978-989-665-3
Today, organizations face external factors of increased competition and greater demands from a global marketplace where business sustainability is less attainable. In quest to proffer solutions to this identified problem, this paper titled Management, Sustainable Development, Security and Supply Chain Transformation in the 21st Century critically explored the concepts of management practices, its influences on sustainable development, security of business and supply chain in this current dispensation. Digital supply chain require technologies to transform investment, in this regard, this paper presented the five major pillars of creating an in-sight enterprise, digital customer engagement and digital service optimization among others and ways at which they impact the business environment. This paper also reviewed that businesses in today’s era has to mount the expertise, mind set and capabilities that are needed to gain competitive edge on global scale. It therefore recommends that organizations must put efforts to efficiently align their operation with the twenty first century model of operations with organizational goal on broader perspective. Other recommendations required to be implemented includes to foster cooperation, encourage training; intensify communicate with customers, improve device security, explore the right avenue where organizations will thrive and be remain competitive while ensuring the change is accepted internally by employees.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
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PROSPECT AND CHALLENGES OF DIGITAL TAXES IN THE 21ST CENTURY
1. WELCOME
Prof. Godwin Emmanuel Oyedokun
ND (Fin), HND (Acct.), BSc. Ed (Acct.), BSc (Acct. & Fin.), MBA (Acct. & Fin.), MSc (Econs), MSc. (Acct.), MSc. (Bus & Econs), MSc (Tax), MTP (SA), PhD (Fin),
PhD (FA), PhD (Acct), ACIB, ACS, ACIS, ACAMS, ABR, CICA, CFA, CFE, CIPFA, CPFA, CertIFR, IPA, MNIM, FCA, FCTI, FCNA, FCFIP, FCE, FERP, IFA, FFAR
godwinoye@yahoo.com
+2348033737184, +2348055863944 & +2348095491026
Professor of Management & Accounting
Lead City University, Ibadan, Nigeria.
2. PROSPECT AND CHALLENGES OF DIGITAL TAXES IN THE 21ST CENTURY
BY
PROFESSOR GODWIN OYEDOKUN
BEING A PAPER PRESENTED AT THE 23RD ANNUAL TAX CONFERENCE
OF THE CHARTERED INSTITUTE OF TAXATION OF NIGERIA HELD AT
UMARU MUSA YAR’ADUA HALL, MURTALA MOHAMMED SQUARE,
RACE COURSE KADUNA DATED FRIDAY, 30TH OCTOBER 2020.
3. CONTENT
INTRODUCTION
DIGITAL SERVICES
DIGITAL SERVICE TAX
INTERNATIONAL DEVELOPMENTS CONCERNING
TAXATION OF DIGITAL SERVICES
PROSPECTS OF DIGITAL SERVICE TAX
CHALLENGES OF TAXING THE DIGITAL SERVICES
CONCLUSION AND RECOMMENDATION
4. INTRODUCTION
The twenty first century society birthed technology which today is transforming many
aspects of how business activities are conducted, as well as the way tax authorities and
governments administer various taxes imposed on business activities globally.
The huge transformation and vast change brought about by technology is the manner
business transactions are conducted these days. This brings about both opportunities as
well as challenges for governments of developing economies.
One positive effect of the introduction of digital business is that it has created, an
opportunity for governments to raise additional revenue for development. However, the
revenue generating opportunities presented by digital business demands a change in the
tax system and nature of taxation policies, through the development of a universal new
range of tax systems to support the development and implementation of taxation policies
(Richard & Subhajit, 2002).
5. INTRODUCTION
The digitalization of the economy has been a key focus of tax debates in recent years.
Political debates have focused on the differences between taxing physical business
operations and virtual operations.
These debates have intersected with multiple layers of tax policy including consumption and
corporate tax policies. Novel policies have also been developed including equalization levies
and digital services taxes alongside more common use of gross-based withholding taxes
targeted at digital services. However, in some cases political expediency has outpaced
consistent policy designs in line with sound principles of tax policy.
As policymakers continue to evaluate the options to tax digital businesses it will be
necessary to avoid creating new distortive tax policies driven by political agendas. To this
end, this paper critically analyses the prospect and challenges of and effective digital
taxation.
6. CONCEPT OF DIGITAL SERVICES
The term Digital Services
refers to the electronic
delivery of information
including data and
content across multiple
platforms and devices
like web or mobile.
DIGITAL SERVICES?
The term is more widely used in
government circles in terms of making
the overall interaction of citizens with
the public sector a more pleasant and
efficient experience.
However, this is equally important in the
private sector in terms of improving the
customer experience while boosting
productivity
7. CONCEPT OF DIGITAL SERVICES/2
DIMENSIONS OF DIGITAL
SERVICES
INTANGIBILITY
INVARIANCE
HIGH TECH
SCALABILITY
8. CONCEPT OF DIGITAL SERVICES/3
1 INTANGIBILITY
Digital services do not involve physical evidence of the unit of exchange.
There are several implications arising from this notion. First, although
no concrete material evidence is present, environmental cues do
play a role in customer quality perception even in the digital
environment, similar to “tangibles” in the service quality concept.
These can be called “digital tangibles” or “tangibilizers” (Edvardsson,
2005) since they help the customer in formulating initial perception,
attitude and intent towards the digital service.
DIMENSIONS OF DIGITAL
SERVICES
9. CONCEPT OF DIGITAL SERVICES/4
2 INVARIANCE
Digital services can be standardized by both quality and
content, and the standardization is easier than for services
that require a high human touch/effort to be provided.
This is in direct contradiction with the traditional view of the
service that asserts: “unlike tangible goods, 100 per cent
quality cannot be engineered into a service, especially when
even the definition of the service is in the eyes of the beholder.
DIMENSIONS OF DIGITAL
SERVICES
10. CONCEPT OF DIGITAL SERVICES/5
3 HIGH-TECH
The customer interaction within digital services takes place
with the application interface; human touch has mainly a
supportive role.
This “human distance” leads to anonym exchange between the
service provider and the customer. As oppose to “high touch”
services, the distant and anonym nature of the digital service
commands consideration to increasing trust, and perhaps
include more human interaction through the digital medium.
DIMENSIONS OF DIGITAL
SERVICES
11. CONCEPT OF DIGITAL SERVICES/6
3 HIGH-TECH
This implies that the economies of digital services
are considerably different from traditional
services, for which scaling (defined as
increasing supply to match increased demand) is
typically more expensive, considerably slower
and requires greater focus on human issues,
such as recruitment and management.
Digital services are characterized by “unlimited
seats”, meaning that they scale perfectly according
to true demand.
DIMENSIONS OF DIGITAL
SERVICES
12. FEATURES OF
DIGITAL
SERVICES
They possess a high level of mobility,
reliance on intangibles, data and
network effects, a tendency towards
monopoly or oligopoly and volatility.
The highly digitalized business models
contain several varieties of e-
commerce, app-stores, online
advertisement, cloud services,
networks platforms, and high speed
trading and online payment services.
CONCEPT OF DIGITAL SERVICES/7
13. DIGITAL SERVICE TAX
DIGITAL TAX
Digital taxes include policies that
specifically target businesses which
provide products or services through
digital means using a special tax rate or
tax base.
These include policies that extend existing
rules to ensure a neutral tax policy
toward all businesses, such as when a
country extends its Value-added Tax to
include digital services.
Digital services taxes are
gross revenue taxes with
a tax base that includes
revenues derived from a
specific set of digital goods
or services or based on the
number of digital users
within a country.
14. CATEGORIES OF
DIGITAL TAX
CONSUMPTION TAXES
DIGITAL SERVICES
TAXES
TAX PREFERENCES FOR
DIGITAL BUSINESSES
DIGITAL PERMANENT
ESTABLISHMENT RULES
GROSS-BASED
WITHHOLDING TAXES ON
DIGITAL SERVICES
DIGITAL SERVICE TAX/2
15. DIGITAL SERVICE TAX/3
CONSUMPTION TAXES
Consumption taxes are Value-added Taxes (VAT)
and other taxes on the sale of final goods or
services. Countries have been expanding their
consumption taxes to include digital goods and
services
DIGITAL SERVICES TAXES
Digital services taxes are gross revenue taxes with a
tax base that includes revenues derived from a
specific set of digital goods or services or based on
the number of digital users within a country.
TAX PREFERENCES FOR DIGITAL BUSINESSES
Tax preferences are policies such as research
and development (R&D) credits and patent boxes
that reduce the tax burden on digital businesses.
16. DIGITAL SERVICE TAX/3
DIGITAL PERMANENT ESTABLISHMENT RULES
These policies include redefining what
constitutes a permanent establishment to
include digital companies that have no
physical presence within a jurisdiction.
These virtual or digital permanent
establishments are usually defined using
specific criteria including engagement
with the local market.
GROSS-BASED WITHHOLDING TAXES ON DIGITAL
SERVICES
Gross-based withholding taxes are used by
some countries instead of corporate taxes or
consumption taxes to tax revenue of digital
firms in connection to transactions within a
jurisdiction.
As gross income taxes, these policies do not
substitute for income or consumption
taxation.
17. DIGITAL SERVICE TAX/4
SIMPLICITY
Tax codes should be easy for taxpayers to
comply with and for governments to administer
and enforce.
Digital tax policies fail the simplicity test when
they leave important definitions unclear or add
unnecessary compliance challenges for
businesses that are trying to understand how
much tax they owe.
TRANSPARENCY
Digital taxes are sometimes designed as thinly
veiled proxies for other taxes (either
consumption or corporate taxes) rather than
pure extensions of those existing policies.
Additionally, digital services taxes and gross-
based withholding taxes usually have low
statutory rates, but because they apply to
revenues rather than income the tax burden is
effectively much higher than the rate implies.
PRINCIPLES OF DIGITAL TAXATION
18. DIGITAL SERVICE TAX/3
NEUTRALITY
The purpose of taxes is to raise needed revenue,
not to favor or punish specific industries,
activities, and products. Some digital taxes work to
create neutrality between digital business models
and other businesses.
Extending consumption taxes to include digital
products and services can result in neutral
treatment of consumption.
STABILITY
Taxpayers deserve consistency and predictability in
the tax code. Governments should avoid enacting
temporary tax laws, including tax holidays,
amnesties, and retroactive changes.
Many digital tax policies are designed to be
temporary, with some timelines tied to international
agreements on changes. Temporary tax policy
creates uncertainty and challenges for both
administration and compliance.
PRINCIPLES OF DIGITAL TAXATION
19. INTERNATIONAL DEVELOPMENT CONCERNING DIGITAL TAX
Following the finalization of the OECD’s Base Erosion and Profit-Shifting (BEPS)
reports in 2015, the G20 tasked the OECD in 2016 with undertaking further work
on the tax challenges arising from digitalization. In March 2018 the OECD’s Interim
Report noted the need for consensus-based longer term tax reform.
The OECD also recognized that some countries wanted to take more immediate
action and issued a framework to guide the introduction of an interim DST,
broadly based on India’s Equalization Levy (2016) and a similar European
Commission (2018) proposal.
However, the OECD noted it is important that countries follow the framework, as it
recognizes complexities like double taxation, compliance with international trade
rules and the risk that the tax may ultimately be borne by consumers. The OECD
noted that it expected countries would remove any DST’s once a longer term
solution was reached.
20. PROSPECT OF DIGITAL TAX
The rising statistics of the digital services globally which is majorly due to its
immense potential, it has become expedient for the global tax authorities to
explore a more creative approach to ensure effective taxation in a means to
generate revenue.
Although some developed and developing nations have ensured an effective
taxation of the digital services, countries like Nigeria will however need to
borrow a leaf from such nation that have taken bold steps to tackle tax
leakages in the digital economy through innovative tax legislation.
Just like India, the government should expand the scope of "fixed base" under
Section 13 of the CITA to ensure that the digital economy is effectively
captured for income tax purposes. The introduction of a digital fixed base in
Nigeria will certainly increase the tax base, thereby ensuring an increase in
government revenue.
21. PROSPECT OF DIGITAL TAX/2
A major drawback, however, relates to enforcement of taxation of digital
transactions, given that most digital transactions are concluded with non-
resident companies, which makes efficient tracking of such transactions
difficult.
However, with proper legislation on taxation of digital transactions, the tax
authorities can work with banks to identify payments relating to digital
transactions with non-resident companies that should be subject to tax.
Furthermore, tax authorities should leverage the automatic exchange of
information between jurisdictions and employ innovative technology to secure
a proper database of the various online suppliers of goods and services. This
will go a long way in providing the tax authorities with sufficient data to go
after tax defaulters directly.
22. CHALLENGES OF DIGITAL TAX
The digitalization enables multinational enterprises to establish highly digitalized business
models in various jurisdictions with minor or nonexistent physical presence in the Market
State.
These multinational active and highly digitalized business models are shifting profits to low-
tax jurisdictions in order to artificially reduce their tax burden by exploiting loopholes in
the interaction of different domestic tax systems.
These loopholes are especially created by the key characteristics of the digital business
models. These new characteristics are undermining the current international tax system
by decreasing the relevance of the concept of physical presence, increasing the
importance of intangible assets and introducing value creation due to data usage, leading
to value-creation chains within several jurisdictions.
These circumstances raise the fundamental questions of how to define and characterize
the TERMS OF INCOME, VALUE CREATION AND PERMANENT ESTABLISHMENT (PE) within the
digital economy.
The business model of social-media-platforms such as Facebook, Instagram or Twitter are
especially challenging for the international tax regime.
23. CHALLENGES OF DIGITAL TAX/2
The applicable rules for corporate taxation in Nigeria do not effectively capture the
realities of a modern economy in our world of fast-paced digital transactions. Given
that non-resident companies are taxed in Nigeria based on profits derived from
Nigeria, the question as to whether a foreign company is liable to income tax in Nigeria
is usually controversial.
Section 13 of Companies Income Tax Act (CITA) implies that a non-resident company
must have physically performed activities in Nigeria, directly or indirectly, before such
a company can be liable to income tax in Nigeria.
Thus, where a software company provides online data to users in Nigeria without being
physically present in Nigeria in any form, it may be difficult to conclude that such a
company is liable to CIT in Nigeria, although the company could have derived income
from Nigeria. A major challenge is therefore determining at what point such non-
resident would be deemed to have carried on business in Nigeria and thus liable to
income tax in Nigeria.
This is because the absence of the required fixed base or physical operations in
Nigeria under Section 13 of CITA has made it difficult for the FIRS to establish liability
of such foreign companies to Nigerian tax.
CHALLENGES OF
DIGITAL TAX IN
NIGERIA
24. CHALLENGES OF DIGITAL TAX/3
To ensure that digital companies do not escape tax in Nigeria, the FIRS has often
required Nigerian companies to withhold tax on all payments made to non-resident
persons regardless of the non-establishment of the tax presence specified
under Section 13 of CITA.
This requirement has encountered resistance from taxpayers given that such non-
resident persons may not be liable to tax under Nigerian laws.
However, the FIRS seem to have succeeded in ensuring that VAT is deducted and
accounted for on cross border payments for transactions between foreign
companies and Nigerian companies such as in the case between Vodacom Business
Nigeria Limited v FIRS. In that case, the Federal High Court ruled in favour of the FIRS
and held that the Nigerian company was required to account for the VAT on such
transactions regardless of the fact that the supplier/foreign company did not
perform the services and had no physical presence in Nigeria.
Thus, the absence of relevant provisions in the Nigerian tax laws covering taxation of
digital activities is a major challenge that has resulted in loss of revenue to the
government.
CHALLENGES OF
DIGITAL TAX IN
NIGERIA
25. DIGITAL TAXATION INSIGHT FROM OTHER COUNTRIES
Here are some of the measures taken by other
jurisdictions on the taxation of the digital economy
India introduced new digital permanent establishment rules effective April 2019 to address the
challenges that arise from the taxation of the digital economy.
These rules, which are contained in the 2018 Indian Finance Act, seek to subject businesses that
have a "significant economic presence" in India to Indian tax notwithstanding that such businesses
may not have any physical presence in India. The Act defined "significant economic presence" to
mean, amongst others, transactions where the aggregate payments exceed such amounts as may be
prescribed.
In addition, India currently imposes a surcharge tax of 6% on payments to foreign companies for
online advertising services when such companies do not hold a permanent establishment in India.
Ultimately, these rules aim at capturing companies that do significant business in India through
digital channels but who would not have been captured by preexisting permanent establishment
rules.
26. DIGITAL TAXATION INSIGHT FROM OTHER COUNTRIES/2
In March 2018, the European Commission (the Commission) proposed new rules to ensure that
digital business activities are taxed in a fair and growth-friendly manner in the EU. The Commission
has made two legislative proposals.
One proposal recommends that member states apply an interim tax on companies that generate
annual total revenue of over £750 million and annual total revenue of over £50million from digital
activities in the EU.
This interim tax is to cover the main digital activities that currently escape tax in the EU and is to be
levied at 3% on the gross revenue of businesses derived from online advertising, sale of collected
user data and other digital services etc.
The other proposal seeks to introduce the concept of a "taxable digital presence" or a Virtual
Permanent Establishment (VPE). A VPE is designed to introduce a taxable nexus for digital
businesses operating within the EU with little or no physical presence.
27. It is crystal clear that the digital tax debate is far from over, and policymakers
should seek to follow sound principles in developing, refining, and (in some
cases) removing digital tax policies.
In some country policy, consumption and corporate income taxes (and
associated permanent establishment rules), countries are working to extend
their existing rules to digital businesses. This presents an opportunity to move
toward equal treatment of physical and digital business models, but also real
challenges to align standards and implement policies on a multilateral basis.
Policies in these areas should meet a high bar for alignment with other
jurisdictions, minimize complexity and compliance costs, and avoid differential
treatment of targeted business sectors.
In some other countries, the country digital services taxes and gross-based
withholding taxes are relying on novel, but distortive and discriminatory,
approaches to taxing digital businesses. These policies have the potential to
lead to an economically harmful tax and trade war and should be avoided.
CONCLUSION
28. RECOMMENDATIONS
Create Policies that clearly allow for relief from double
taxation.
Avoid adopting digital services taxes to prevent the
distortions that such revenue-based taxes create.
Ensure Preferences for digitalized businesses with focus
on innovation rather than creating tax windfalls.
Ensure improvement of Research & development tax
credits to avoid compliance challenges that limit the
benefits to businesses that can afford to comply.
In this twenty first century, it is therefore
recommended that countries should: