International tax system overhaul

For years, technology has been a driving force in transformation of businesses. It has reached its fastest speed to introduce innovations which in turn shape business developments.

From modern selling online to retro digital accounting tools, all are forms of digital businesses. They include both digital-only brands, such as Google and eBay, and traditional businesses, like Walmart which are transforming their activities with digital technologies.

Digital platforms are getting more attention of the companies worldwide. They have brought companies new perspectives for business development.

Companies can use a collection of software and hardware tools to connect with the customers, providers, investors and so on, hence saving money and time, and maximizing the profits of the shareholders.

Given the benefits, global companies are widely rising the digital platforms. Digital platforms provide different services: businesses that are selling physical products can have their own online market. They can also sell through global e-commerce platforms, like eBay and Amazon.

In addition to the customer-oriented benefits, digital businesses award bonuses for companies. The major benefit -- or misuse -- is to avoid tax. Tax systems in majority of the countries are based on assumptions undermined by digital businesses.

Tax systems assume the transactions inside a company can be valued based on an objective market benchmark. However, digital businesses rely to a great extent on intangible assets such as software and patents which are hard to value.


Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.ir

SHARE THIS ARTICLE
Press TV News Roku