March 2024 | Beatrice Oyinkansola Adelakun, Joseph Kuba Nembe, Bisola Beatrice Oguejiofor, Chidiogo Uzoamaka Akpuokwe, Seun Solomon Bakare
The article "Legal Frameworks and Tax Compliance in the Digital Economy: A Finance Perspective" by Beatrice Oyinkansola Adelakun, Joseph Kuba Nembe, Bisola Beatrice Oguejiofor, Chidiogo Uzoamaka Akpuokwe, and Seun Solomon Bakare explores the evolving dynamics of tax compliance in the digital economy from a financial perspective. The authors highlight how the rapid digitalization of commerce has transformed traditional tax systems and legal frameworks, presenting significant challenges. The digital economy, characterized by e-commerce, digital platforms, and virtual currencies, has blurred traditional tax jurisdictions, making it difficult to determine tax liabilities and enforce regulations effectively.
The article emphasizes the need for international cooperation and coordination to address tax evasion and profit shifting in the digital economy. Initiatives like the Base Erosion and Profit Shifting (BEPS) project by the OECD aim to establish common standards for taxing digital businesses. Additionally, the integration of technologies such as blockchain and artificial intelligence offers both opportunities and challenges for tax authorities, enhancing transparency and traceability but also introducing complexities in data governance, security, and privacy.
The authors also discuss the role of tax knowledge and compliance behavior in the digital economy, noting that effective tax compliance requires a multifaceted approach that integrates legal, technological, and financial perspectives. They recommend fostering international cooperation, leveraging technological innovations, and adapting regulatory frameworks to mitigate tax challenges and promote a fair and sustainable tax system in the digital age.
Keywords: Tax, Digital Economy, Finance, Legal, Review.The article "Legal Frameworks and Tax Compliance in the Digital Economy: A Finance Perspective" by Beatrice Oyinkansola Adelakun, Joseph Kuba Nembe, Bisola Beatrice Oguejiofor, Chidiogo Uzoamaka Akpuokwe, and Seun Solomon Bakare explores the evolving dynamics of tax compliance in the digital economy from a financial perspective. The authors highlight how the rapid digitalization of commerce has transformed traditional tax systems and legal frameworks, presenting significant challenges. The digital economy, characterized by e-commerce, digital platforms, and virtual currencies, has blurred traditional tax jurisdictions, making it difficult to determine tax liabilities and enforce regulations effectively.
The article emphasizes the need for international cooperation and coordination to address tax evasion and profit shifting in the digital economy. Initiatives like the Base Erosion and Profit Shifting (BEPS) project by the OECD aim to establish common standards for taxing digital businesses. Additionally, the integration of technologies such as blockchain and artificial intelligence offers both opportunities and challenges for tax authorities, enhancing transparency and traceability but also introducing complexities in data governance, security, and privacy.
The authors also discuss the role of tax knowledge and compliance behavior in the digital economy, noting that effective tax compliance requires a multifaceted approach that integrates legal, technological, and financial perspectives. They recommend fostering international cooperation, leveraging technological innovations, and adapting regulatory frameworks to mitigate tax challenges and promote a fair and sustainable tax system in the digital age.
Keywords: Tax, Digital Economy, Finance, Legal, Review.