Call of duty: converting the demand for digital taxes into law

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In an era of increasingly digitised and global economic activity, policymakers are seeking to ensure that taxation frameworks are fit for purpose. Related to this is the intense debate over how to appropriately tax big tech. Some argue that firms such as Amazon and Facebook are benefiting from an outdated system that was developed well before the digital age. Think tank Tax Watch, for example, estimates a £1 billion underpayment by tech giants in the UK annually. Amid trade tensions and ongoing reforms, which are being criticised for not moving fast enough, several countries have designed their own digital taxes. At a time when retail and domestic businesses are under pressure (even prior to the Covid-19 pandemic), criticism of big tech will escalate unless there are adequate revisions to international taxation rules.
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