Challenges Encountering in E Commerce Fiscal Imposition of Digital Multinational Companies
Despite its advantages, the borderless nature of electronic commerce poses serious challenges to governments worldwide regarding taxation. Where the goods or services are deliverable digitally (such as software or music) it is difficult to trace their origin for the purpose of taxation. Attempts have been made to seek solution to the challenges posed by electronic commerce to tax administration. The United States, Britain and other large, rich nations reached a landmark deal on June 6, 2021 to squeeze more money out of multinational companies such as Amazon and Google and reduce their incentive to shift profits to low tax offshore havens. Hundreds of billions of dollars could flow into the coffers of governments left cash strapped by the COVID 19 pandemic after the Group of Seven (G7) advanced economies agreed to back a minimum global corporate tax rate of at least 15% <br><br>This article is based on on the literature review of two PhD thesis requirements, namely Mr. Eloi Vincent De Paul Bekombo Ndedi and Ms. Koumemb Carole Danette. In this regard, this article will review recent moves to impose taxes on digital multinational companies.