SESSION E DESIGN FRAMEWORK FOR FUTURE GUIDELINES ON B2C SUPPLIES - - PowerPoint PPT Presentation

SESSION E

DESIGN FRAMEWORK FOR FUTURE GUIDELINES ON B2C SUPPLIES

17-18 April 2014 Tokyo, Japan

• Prof. Walter Hellerstein, University of Georgia

Law School

• Schedule for this session

– Overview of parallel session’s objective – European tax policy perspective, Ms Pia Michelsen – Perspective from Japan, Mr Minoru Nakazato – Rapporteur, Mr Ilya Trunin – Discussion with the floor – Possible conclusions

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Overview of Parallel Sessions’ Objectives

• Exploring approaches for allocating taxing rights over

supplies of services and intangibles to final consumers

• Identifying “substantive” and “enforcement” jurisdiction

– “Substantive jurisdiction”: power of country to impose tax on subject matter of exaction

• For consumption taxes, where consumption occurs or is

deemed to occur

– “Enforcement jurisdiction”: power of country to compel collection of tax over which it has substantive jurisdiction

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Overview of Parallel Sessions’ Objectives

• Focus of Parallel Session E is “substantive jurisdiction”
• Key questions to be addressed by our session:

– Which proxies are available for identifying the “place of consumption” – Is it necessary to use different proxies for different kinds of supplies? – Is it necessary to distinguish between B2B and B2C? – What are the possible and preferred solutions?

• Focus of Parallel Session F is “enforcement jurisdiction”

– Practical means to enforce compliance with tax over which country has substantive jurisdiction, particularly in digital economy

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• Ultimate goal for tax regime design (combining

Parallel Sessions E and F) is to align substantive and enforcement jurisdiction (upper left cell) and to avoid other three possibilities:

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Substantive Jurisdiction Enforcement Jurisdiction No Substantive Jurisdiction Enforcement Jurisdiction Substantive Jurisdiction No Enforcement Jurisdiction No Substantive Jurisdiction No Enforcement Jurisdiction

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Introduction of Case Study