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 2

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”: p ower 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 3

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 4

• 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 : Substantive Jurisdiction No Substantive Jurisdiction Enforcement Jurisdiction Enforcement Jurisdiction Substantive Jurisdiction No Substantive Jurisdiction No Enforcement Jurisdiction No Enforcement Jurisdiction 5

Introduction of Case Study 6