Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Using cross-country data, this note explores the potential impact of selected digital technologies on tax collection and compliance. The analysis makes use of multi-dimensional International Survey on Revenue Administration, Tax Administration Diagnostic Assessment Tool, and Revenue Administration-Gap Analysis Program (RA-GAP) data with results indicating that digital technologies could help enhance tax collection, but with effects that vary by the type of specific digital service or tools introduced. While the results demonstrate a strong association between digital tax administration operations and improved performance outcomes, the realization of revenue gains is heavily contingent on accompanying policy, legislative, and administrative reforms, as well as the availability of adequate digital connectivity and capable tax administration staff. The cross-country approach provides reasonable upper-bound estimates on revenue gains, which, however, need to be carefully validated with country-specific case studies. The note reviews single country case studies from selected micro-economic literature that complement the cross-country results and reveal key enabling factors necessary to reap and sustain the benefits of new digital investments.

Currency crises --- Diffusion Processes --- Economic & financial crises & disasters --- Economic Development: General --- Economic sectors --- Economics of specific sectors --- Economics --- Economics: General --- Financial crises --- Informal sector --- Macroeconomics --- Taxation, Subsidies, and Revenue: General --- Technological Change: Choices and Consequences

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Pillar Two rules of the Inclusive Framework agreement on a minimum corporate tax (known as ‘Global Anti-Base Erosion Rules’, for short GloBE) have important implications for the design of the corporate income tax. This chapter discusses these implications particularly from the perspective of low-tax jurisdictions. It argues that it is not possible to design a system that always guarantees generating exactly the bare minimum tax intended by the rules and motivates that this should not be the policy objective anyway. Importantly, if no profit tax already exists, countries need to consider whether to adopt one, and if yes, in what form. There is a case for introducing a general profit tax beyond the GloBE rules, together with a qualifying GloBE domestic minimum top-up tax as a backstop. The familiar alternatives of efficient economic rent tax designs, however, are no longer equivalent under the GloBE. In practice, given the specifics of the rules, an efficient rent tax on in-scope multinationals cannot be combined with a statutory tax rate below a certain cutoff, because the minimum tax becomes always binding. Under the GloBE, immediate expensing particularly maintains the time-value of fully deducting the cost of investment, without impacting the GloBE effective tax rate.

Allowance for corporate equity --- Business Taxes and Subsidies --- Cash-flow tax --- Corporate & business tax --- Corporate income tax --- Corporate Taxation --- Corporate taxes --- Corporations --- Currency crises --- Economic & financial crises & disasters --- Economics of specific sectors --- Economics --- Economics: General --- Efficiency --- Income tax --- Informal sector --- International Business --- Macroeconomics --- Multinational Firms --- Optimal Taxation --- Personal Finance -Taxation --- Personal Income and Other Nonbusiness Taxes and Subsidies --- Public finance & taxation --- Tax allowances --- Taxation --- Taxes

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Digital divide across countries and within countries continues to persist and even increased when the quality of internet connection is considered. The note shows that many governments have not been able to harness the full potential of digitalization. Governments could play important role to facilitate digital adoption by intervening both on supply (investing in infrastructure) and demand side (increase internet affordability). The note also documents significant dividends from digital adoption for revenue collection and spending efficiency, and for outcomes in education, health and social safety nets. The note also emphasizes that digitalization is not a substitute for good governance and that comprehensive reform plans embedded in National Digital Strategies (NDS) combined with legal and institutional reforms are needed to ensure that governments can reap full benefits from digitalization and manage the risks appropriately.

Automation --- Currency crises --- Diffusion Processes --- Economic & financial crises & disasters --- Economic sectors --- Economics of specific sectors --- Economics --- Economics: General --- Education and Inequality --- Finance, Public --- Financial crises --- Foreign Exchange --- General issues --- Government Policy --- Health and Inequality --- Industries: Information Technololgy --- Informal Economy --- Informal sector --- Information technology industries --- Information technology --- Innovation --- Intellectual Property Rights: General --- Labor Force and Employment, Size, and Structure --- Macroeconomics --- National Government Expenditures and Related Policies: Infrastructures --- Other Public Investment and Capital Stock --- Provision and Effects of Welfare Program --- Public Administration --- Public finance & taxation --- Public Finance --- Public financial management (PFM) --- Public Sector Accounting and Audits --- Research and Development --- Revenue administration --- Revenue --- Taxation, Subsidies, and Revenue: General --- Technological Change --- Technological Change: Choices and Consequences --- Technology --- Underground Econom