Addressing the tax challenges of the digital economy

Whether or not your business uses bitcoins and advanced robotics it has surely been transformed by technology since the OECD updated article 5 of its Model Tax Convention. These are two examples of the digital economy mentioned in the OECD’s discussion draft BEPS Action 1: Address the tax challenges of the digital economy published on 24 March 2014. Comments are requested by 14 April.

The aim of Action 1 is to identify the main difficulties that the digital economy poses to international tax rules and to set out options to address them. The discussion draft begins by recognising the evolution of information and communication technology in general.