Dr Leopoldo Parada quoted in Bloomberg Tax article on digital services taxes
Dr Leopoldo Parada's opinion is featured in a Bloomberg Tax article in regard to digital services taxes and the struggles that some European countries are facing in terms of revenue collection.
Digital services taxes generally apply a low tax rate (for example, 2% in the UK) on certain digital services, and affect companies that have global revenues over £500 million, and more than £25 million domestically that is derived from UK users.
When consulted on these matters in connection with the UK digital services tax, Dr Parada stated: "Other countries have introduced functionally very similar digital service taxes. The UK, which introduced a tax in April, may well see similarly modest revenue collection". He added that in the UK "in the first year that we have implemented the digital service tax, it has a lot of problems with compliance, like having companies fully understand how the tax works so I would expect something similar in terms of revenue.”
Read the full article [behind a paywall].