Taxation

Cryptocurrencies, once a niche asset class, have exploded into the financial mainstream, with billions in trading volume, institutional adoption, and a growing presence in global investment portfolios. However, tax systems in the European Union (EU) have struggled to keep pace with the rapid growth and evolving nature of digital assets. From capital gains to VAT, staking rewards to decentralized finance (DeFi), crypto taxation varies dramatically across member states. This article examines the current state of cryptocurrency taxation in the EU, highlights national differences, and evaluates efforts at regulatory harmonization through the Markets in Crypto-Assets (MiCA) regulation and the OECD’s Crypto-Asset Reporting Framework (CARF).… Read more

The COVID-19 pandemic drastically reshaped the global labor market, accelerating the adoption of remote work across industries and borders. As employees began working from countries different from their employers, new and complex tax issues emerged. The rise of cross-border remote work has forced tax authorities, multinational companies, and digital professionals to reconsider traditional tax residency, employer obligations, and permanent establishment (PE) risks. This article explores the evolving landscape of international taxation for remote workers, addressing key challenges, regulatory responses, and strategic considerations for employers and employees alike.… Read more

Professional football in Europe is not only a multibillion-euro industry but also one of the most complex sectors when it comes to taxation. Player transfers, which often involve enormous sums, multiple jurisdictions, and various stakeholders, raise significant tax challenges and planning opportunities for clubs, players, agents, and governments alike. This article provides a comprehensive analysis of how footballer transfers are taxed across Europe, examining the treatment of transfer fees, image rights, agents’ commissions, and recent regulatory developments.… Read more

In an era of globalization and digital commerce, multinational enterprises (MNEs) increasingly leverage tax havens to reduce their tax burdens through practices like profit shifting and base erosion. These strategies, while often legal, have ignited a global debate over corporate tax fairness, sovereignty, and the erosion of domestic tax bases. This article examines the structure and tactics of tax havens, the economic and ethical implications of base erosion and profit shifting (BEPS), and the international policy responses seeking to restore equity to the global tax system.… Read more

Traditional economic models assume that individuals respond rationally to tax incentives, penalties, and audit probabilities. However, real-world tax compliance behavior often deviates from purely rational predictions. Behavioral economics introduces psychological, social, and cognitive dimensions to understanding taxpayer behavior. This article explores how behavioral insights enhance tax policy design, improve compliance rates, and contribute to more effective revenue collection strategies. The Limits of the Traditional Rational Model According to the standard Allingham-Sandmo model, individuals calculate the expected value of evasion based on audit probability and penalties versus the tax they owe.… Read more

The rise of digital currencies—ranging from decentralized cryptocurrencies like Bitcoin to government-issued Central Bank Digital Currencies (CBDCs)—is transforming global finance. While these innovations promise efficiency, financial inclusion, and transactional speed, they also pose unique challenges to tax authorities. This article examines how digital currencies affect tax policy, compliance, enforcement, and international cooperation, while exploring strategies to adapt taxation systems for a digital monetary future. The Tax Complexity of Cryptocurrencies Cryptocurrencies blur the lines between currency, asset, and commodity.… Read more

In response to Pillar Two, jurisdictions are adjusting domestic tax laws to retain competitiveness while complying with GloBE standards. Some countries have adopted or announced “Qualified Domestic Minimum Top-up Taxes” (QDMTTs), which allow them to collect the top-up tax domestically before it is claimed by other jurisdictions under the IIR or UTPR. For example, Australia introduced legislation in 2023 for a QDMTT effective in 2024, ensuring any top-up tax owed by Australian subsidiaries of MNEs is paid locally.… Read more

Tax havens have long been a contentious issue in global finance, offering low or zero-tax regimes that attract profits from multinational corporations (MNCs). While legal in many cases, the use of tax havens has raised significant ethical, economic, and policy concerns. This article provides a comprehensive analysis of how tax havens function, their impact on global tax bases and inequality, and recent efforts—such as the OECD’s global minimum tax initiative—to curb aggressive tax avoidance strategies.… Read more