DIGITAL PARADISE: NAVIGATING THE COMPLEXITY OF TAXATION IN THE ERA OF TECHNOLOGICAL TRANSFORMATION
Keywords:
Digital economy, Taxation, Technological transformation, Tax governance, Regulatory responses, Compliance mechanisms, Redistribution.Abstract
The digital revolution has fundamentally transformed the taxation landscape, necessitating a nuanced understanding of its implications for fiscal governance. This research literature review thoroughly examines the multifaceted dimensions of taxation in the era of technological transformation, drawing insights from a diverse array of scholarly literature, policy documents, and empirical studies. Key themes explored encompass tax governance mechanisms, regulatory responses to cross-border tax evasion and profit shifting, compliance behaviors, and the redistributive impact of taxation in the digital age. By synthesizing existing research, this review provides a holistic understanding of the complexities of navigating contemporary fiscal governance's digital paradise. The literature synthesis reveals the critical role of tax governance mechanisms in addressing the challenges the digital economy poses. Regulatory responses, including proposals for digital taxation frameworks and international tax cooperation agreements, are examined to elucidate their potential efficacy in fostering tax compliance and mitigating tax evasion and avoidance. Furthermore, the review delves into the intricate interplay between taxpayer motivations, compliance drivers, and communication strategies, offering insights into enhancing tax compliance behaviors in the digital era. Additionally, the redistributive effects of taxation policies are analyzed, highlighting their role in addressing income inequality and promoting social equity in digitally-driven economies. This review contributes to the scholarly discourse by providing a comprehensive analysis of taxation in the digital age, offering valuable insights for policymakers, scholars, and practitioners. By unpacking the complexities of taxation amidst technological transformation, it informs efforts to devise effective fiscal policies that promote fairness, efficiency, and sustainability in the digital era.
References
Alstadsæter, A., Johannesen, N., & Zucman, G. (2019). Tax evasion and inequality. American Economic Review, 109(6), 2073-2103.
Ballard, C. L., & Gupta, S. (2018). Perceptions and realities of average tax rates in the federal income tax: Evidence from Michigan. National Tax Journal, 71(2), 263-294.
Bauer, A. M., Macnaughton, A., & Sen, A. (2015). Income splitting and anti-avoidance legislation: evidence from the Canadian "kiddie tax." International Tax and Public Finance, 22, 909-931.
Blaufus, K., Bob, J., Hundsdoerfer, J., Sielaff, C., Kiesewetter, D., & Weimann, J. (2015). Perception of income tax rates: evidence from Germany. European Journal of Law and Economics, 40, 457-478.
Bond, M., Buntins, K., Bedenlier, S., Zawacki-Richter, O., & Kerres, M. (2020). Mapping research in student engagement and educational technology in higher education: A systematic evidence map. International journal of educational technology in higher education, 17(1), 1-30.
Busetto, L., Wick, W., & Gumbinger, C. (2020). How to use and assess qualitative research methods. Neurological Research and Practice, 2, 1-10.
Christensen, R. C., & Hearson, M. (2019). The new politics of global tax governance: Taking stock a decade after the financial crisis. Review of International Political Economy, 26(5), 1068-1088.
Clausing, K. A. (2016). The effect of profit shifting on the corporate tax base in the United States and beyond. National Tax Journal, 69(4), 905-934.
Dechezleprêtre, A., Einiö, E., Martin, R., Nguyen, K. T., & Van Reenen, J. (2016). Do tax incentives for research increase firm Innovation? An RD design for R&D (No. w22405). National Bureau of Economic Research.
Dharmapala, D., Foley, C. F., & Forbes, K. J. (2011). Watch what I do, not what I say: The unintended consequences of the Homeland Investment Act. The Journal of Finance, 66(3), 753-787.
Dyrda, S., Hong, G., & Steinberg, J. B. (2024). Optimal taxation of multinational enterprises: A Ramsey approach. Journal of Monetary Economics, 141, 74-97.
Freire-González, J. (2018). A critical review of environmental taxation and the double dividend hypothesis in CGE modeling literature. Journal of Policy Modeling, 40(1), 194-223.
Hennink, M., & Kaiser, B. N. (2022). Sample sizes for saturation in qualitative research: A systematic review of empirical tests. Social science & medicine, 292, 114523.
Janský, P., & Palanský, M. (2019). Estimating the scale of profit shifting and tax revenue losses related to foreign direct investment. International Tax and Public Finance, 26, 1048-1103.
Johannesen, N., & Zucman, G. (2014). The end of bank secrecy? An evaluation of the G20 tax haven crackdown. American Economic Journal: Economic Policy, 6(1), 65-91.
Kirchner, M., Sommer, M., Kratena, K., Kletzan-Slamanig, D., & Kettner-Marx, C. (2019). CO2 taxes, equity, and the double dividend–Macroeconomic model simulations for Austria. Energy Policy, 126, 295-314.
Koethenbuerger, M., Mardan, M., & Stimmelmayr, M. (2019). Profit shifting and investment effects: The implications of zero-taxable profits. Journal of Public Economics, 173, 96-112.
Nuccio, M., & Guerzoni, M. (2019). Big data: Hell or heaven? Digital platforms and market power in the data-driven economy. Competition & Change, 23(3), 312-328.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
INTERNATIONAL JOURNAL OF ECONOMIC LITERATURE © 2023 by Adisam Publisher is licensed under CC BY-SA 4.0
