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Globalization, Tax Erosion and the Internet

Author

Listed:
  • Soete, Luc
  • Weel, Bas

    (MERIT)

Abstract

Electronic commerce and globalization are, and will continue to be a challenge to tax collectors throughout the world. Globalization makes the cross-border movements in goods, capital and labour less transparent. Companies and individuals are therefore able to exploit tax differences between countries. The Internet eliminates borders between countries and furthermore makes businesses virtually invisible. At the consumer end, E-commerce makes the tracing of transactions and thus the taxing of goods and services sold and distributed via the Internet almost impossible. As a result, state and national governments’ tax bases are, or are at risk of, being eroded.

Suggested Citation

  • Soete, Luc & Weel, Bas, 1998. "Globalization, Tax Erosion and the Internet," Research Memorandum 022, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:umamer:1998022
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    File URL: https://unu-merit.nl/publications/rmpdf/1998/rm1998-022.pdf
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    References listed on IDEAS

    as
    1. Eichengreen, Barry & Tobin, James & Wyplosz, Charles, 1995. "Two Cases for Sand in the Wheels of International Finance," Economic Journal, Royal Economic Society, vol. 105(428), pages 162-172, January.
    2. Frankel, Jeffrey, 1995. "How Well Do Foreign Exchange Markets Function: Might a Tobin Tax Help?," Center for International and Development Economics Research (CIDER) Working Papers 233420, University of California-Berkeley, Department of Economics.
    3. Hanno Beck & Aloys Prinz, 1997. "Should all the world be taxed?," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 32(2), pages 87-92, March.
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    Cited by:

    1. Ligthart, J.E., 2004. "Consumption Taxation in a Digital World : A Primer," Discussion Paper 2004-102, Tilburg University, Center for Economic Research.

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