Feature

EU Study's Author Doubts Digital Transactions Undertaxed

Law360 (March 6, 2018, 6:40 PM EST) -- The European Commission says the digital sector doesn’t pay its fair tax share, claiming academic research shows the need for a new European Union web levy — but the author of the research told Law360 Tuesday the digital sector is not, in fact, undertaxed.

The European Union’s executive arm spearheaded its call last September for “fair and efficient taxation” of digital companies by claiming they faced a tax rate of just 9 percent, compared with 21 percent for “traditional” business.

These figures demonstrate a “distortion which is not acceptable,” according to the commission's top tax official, Pierre Moscovici, in a recent...

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