Online platforms throw up interesting tax problems. They are typically structured in line with a principal/agent model, which dictates the incidence, jurisdiction and quantum of tax paid. Tax compliance by users of platforms is under scrutiny but greater transparency and automatic information exchange are likely to prove more effective tools than withholding tax or joint and several liability. New measures are proposed which aim to tax ‘user value’ in the jurisdictions where the platforms operate but these require international consensus to achieve coherent results. In the meantime, interim measures, e.g. digital service taxes, are proposed.
