UN Official Warns Spread of Digital Taxes Would Be ‘Disastrous’

Countries adopting digital services taxes across the globe could violate obligations of tax treaties, according to a top UN Tax Committee official.

Liselott Kana, co-chair of the UN Tax Committee of Experts, said, in her opinion, digital services taxes function like income taxes and thus violate treaties.

Digital services taxes typically levy digital advertising, e-commerce and other platform services. Countries usually agree to double tax treaties to ensure income on companies is only levied once.

“And I do not like that because I am a tax treaty negotiator, and tax treaties should be respected,” Kana ...