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How to tax the digital economy

Ian Young looks at developments in the digital economy – both in the UK and internationally.

DigitalA key concern of policymakers is how to address the tax challenges of the digitalisation of the economy. At the time of writing, the UK, the European Commission and the Organisation for Economic Co-operation and Development (OECD) are all working on policy solutions to address this and help create a fair taxation system.

Twenty years ago, the OECD grappled with the challenge posed by the growth of ecommerce, as bricks and mortar businesses set up websites to sell their products and services via the internet.