Google tax didn’t address tax challenges of digital economy – Rakesh Nangia
The digital economy was going untaxed, which led to decades of brainstorming at OECD (Organisation for Economic Cooperation and Development), resulting in ‘Action Plan 1-Addressing the tax challenges of Digital Economy’ under the Base Erosion Profit Shifting (BEPS) Project. Being an observer of the BEPS project, a new terminology was toyed by the Indian tax administrator to tax ‘Googles’ and ‘Facebooks’ of the world — Google Tax. A new kind of equalisation levy at six per cent was introduced to tax digital advertisement platforms effective June 2016.
Rakesh Nangia, Managing Partner with inputs from Neha Malhotra contributed an article on Google tax didn’t address tax challenges of digital economy for Business Standard.