Taxing digital platforms is feasible as states seek to generate new sources of revenue, argues tax expert José Galíndez.
The US government announced a global corporate tax initiative to prevent tax avoidance. Several G7 countries, together with the International Monetary Fund (IMF), are proposing a wealth tax on large fortunes to reduce inequality and improve tax revenues. These issues demonstrate the emergence of a new landscape of radical changes in global taxation, which merit further reflection in Panama.
Regarding all these debates, jurist José Galíndez, who holds a Ph.D. from the University of Paris Dauphine. He holds two master's degrees: the first in Tax Administration from the University Paris I Sorbonne in conjunction with the University Paris Dauphine (France); and the second in Corporate Tax Management from the Universidad Metropolitana (Venezuela). Dr. José Galíndez is a founding partner of Galindez, Medrano & Asociados, and Visiting Professor at the Universidad del Externado de Colombia.
Below, Mr. Galíndez presents his views on the new world of taxation.
Panama has joined the international deliberation on taxing digital service platforms, how viable and convenient is this measure?
Digital business models are constantly growing, and the Covid-19 crisis has accelerated the discussion in states about taxing taxpayers who make a living in the digital economy. For this reason, national tax policymakers are awaiting a global consensus-based solution for the direct taxation of the digital economy within the Inclusive Framework of the Base Erosion and Profit Shifting Project (BEPS) of the Organisation for Economic Co-operation and Development (OECD) and the G20.
I believe that taking these measures in a timely manner is both feasible and desirable, especially considering the need for the state to seek fiscal resources to combat the effects of the pandemic on the general population.