Abstract
The growth of the internet poses a challenge to both tax system design and to tax administrations. Governments and international agencies are aware of this challenge but are uncertain as to its likely magnitude. However, there is no doubting that e-commerce and the anonymity of the internet offers real opportunities for those seeking to avoid and evade tax. This paper seeks to identify the key issues which need to be considered in any evaluation of the internet challenge to tax design. It notes that core tax concepts are under challenge and outlines the response of governments as well as agencies such as the OECD. While there is a view that current tax laws can be made to work in the new environment, if this is not the case and a tax-what-you-can system develops, equity and economic efficiency will be major casualties from the growth of the internet.
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Warren, N. (2002). Internet Challenge to Tax System Design. In: Lymer, A., Hasseldine, J. (eds) The International Taxation System. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-1071-0_4
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