CYIL vol. 15 (2024)

EDITA FILADELFIOVÁ CYIL 15 ȍ2024Ȏ Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting related to tax treaties mentioned in point 15. The most recent development within BEPS occurred in February of this year with Pillar B, which is part of a two-pillar solution to address tax challenges arising from the digitalization of the economy agreed upon by the inclusive framework of OECD/G20 on BEPS in October 2021. Pillar B is currently the least captured part of BEPS and concerns addressing tax challenges arising from the digitalization of the economy. Its purpose is to ensure a fair allocation of taxing rights and establish a global minimum tax to address base erosion and profit shifting in the digital economy. 33 2.2 Effects of BEPS on EU Law As we hinted at the beginning, the term OECD is rarely mentioned today. The world is entangled in the war in our neighboring country, the situation in the Middle East, and other emerging threats. However, the quality of our daily lives is often influenced by commonly accepted laws in various areas such as ecology, economy, or education. The OECD is an example of how an international organization and its activities can affect our daily lives and the quality of life in our country. But rather than just talk, in this section, we will together examine how the BEPS project is reflected in EU law, what legal regulations implemented the individual BEPS measures, and what impact those measures have had. For the sake of the article’s scope, we only looked at some of them, but through their examples, we can demonstrate the assumed impact of BEPS. 2.2.1 Implemented Tax Challenges Arising from Digitalization The European Union is aware of the rise of digital services, their impact on society, as well as on the economy itself, 34 and reflects this in the European Digital Agenda for the years 2020– 2030 . It focuses on ensuring a digital space, fair economic competition in digital markets, and strengthening Europe’s digital sovereignty. According to the EU, The digitalisation of the economy has been growing rapidly over recent years. This has given rise to an increasing number of complex situations linked to tax fraud, tax evasion and tax avoidance. The cross-border dimension of services offered through the use of platform operators has created a complex environment where it can be challenging to enforce tax rules and ensure tax compliance. There is a lack of tax compliance and the value of unreported income is significant. Tax administrations of Member States have insufficient information to correctly assess and control gross income earned in their country from commercial activities performed with the intermediation of digital platforms. This is particularly problematic where the income or taxable amount flows via digital platforms established in another jurisdiction . 35 33 OECD, 2024. Pillar One - Amount B: Inclusive Framework on BEPS , OECD/G20 Base Erosion and Profit Shifting Project. Paris: OECD Publishing. (cit. 2024-03-01). Available online: https://doi.org/10.1787/21ea168b-en. 34 The percentage of internet users who purchased goods or services online increased by 12% since 2018, reaching 78% in 2023. At the same time, the turnover of B2C digital commerce was €975 billion in 2023. See: LONE, S., WELTEVREDEN, J.W.J., 2023. 2023 European E-commerce Report. Amsterdam/Brussels: Amsterdam University of Applied Sciences & Ecommerce Europe. 35 Par. 6 of the Council Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation ST/12908/2020/INIT.

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