2026
Tariffs Raised Consumers’ Prices, but the Refunds Go Only to Businesses
This article examines the aftermath of invalidated U.S. tariffs and the government’s refund process, highlighting how repayments are directed to businesses rather than consumers who bore much of the economic burden. It raises important questions about the incidence of tariffs and the distributional consequences of trade policy.
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An Updated Look at the Policy Justifications for the U.K. Digital Services Tax
The article argues that the original policy justifications for the U.K. digital services tax have weakened because BEPS reforms, U.S. international tax changes, and the implementation of pillar 2 have substantially changed how large digital multinationals report and pay tax. It criticizes the DST as an extraterritorial gross-receipts tax that functions more like a tariff or back-door VAT, creating trade friction with the United States while sitting uneasily with treaty-based income tax principles.
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Relevance of the Permanent Establishment Definition in the U.N. Model
Teaser: The article examines whether the U.N. model tax convention should update its definition of permanent establishment to address digitalized, globalized business models, especially through nonphysical nexus concepts such as significant economic presence. Articles 12B and 12AA already give source countries substantial taxing rights over automated digital services and cross-border services, often on a gross or simplified net-hybrid basis, while expanding the PE definition could force source countries into more complex net-basis taxation and transfer pricing disputes.
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Digital Tax Failure Risks Unilateral Measures, EU Official Says
Failure to find a multilateral solution on the taxation of the digital economy would make fresh regional or unilateral measures “almost unavoidable,” a senior European Commission official said.
War in Iran Gives New Fuel to a Tax Debate in Australia
This article explores how geopolitical conflict is influencing tax policy debates in Australia, particularly regarding the taxation of natural resource exports. It focuses on whether current tax regimes adequately capture revenue from multinational energy companies.
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Trump Weighs In on Tariff Refund Process: Supply Lines
President Donald Trump sent what might be construed as a chilling message to the thousands of American importers applying this week for refunds for his illegal tariffs: In his eyes, you might fare better if you don’t.
Taxes on Wages Hit Decade High Across OECD Countries
This article reports on new OECD data showing that taxes on labor income have reached their highest levels in a decade across member countries. It raises important policy questions about tax structure, revenue reliance, and cross-country competitiveness in labor taxation.
Pillar 2 Is Not There to 'Fill Our Pockets,' EU Official Says
The article says the European Commission cannot estimate revenue losses from the pillar 2 deal and notes that the global minimum tax aims to limit tax competition, not raise revenue. It also addresses member state requests for delays, possible simplifications to tax directives, and challenges in adapting dispute-resolution mechanisms for pillar 2 cases involving non-EU countries.
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