Brief Considerations on the Digitization of the Economy and its Impacts on Taxation

Abstract

In this article, we seek to demonstrate how the digital economy revolution is having significant tax impacts, since traditional tax structures are based on the intermediation of transactions, the territoriality of activities and the tangibility of goods. The digital economy thus produces a vacuum arising from the minimization and even elimination of intermediaries in the conduct of legal business. Given this scenario, the task of identifying and controlling taxable materialities becomes more complex, requiring a debate about traditional concepts established in tax doctrine and jurisprudence so that it can follow the evolution and the impact of these new technologies. It is therefore imperative that the tax system be rethought, in the light of this new economic paradigm, under penalty that the tax administrations, subjected to this new panorama, use old categories to achieve new situations derived from digitization of the economy, causing certainly, tax chaos and a clear break with the commandments included in the Constitution of the Republic, especially affecting the fundamental rights of the individual.