The anthology brings together different perspectives on how digitalization changes or may change the conditions for how the tax ecosystem functions, from generating enough tax revenue to finance public sector activity effectively, fairly, and legitimately to practical issues of compliance and how digitalization affects how tax authorities and tax departments within companies work. The conclusions chapter summarizes the different contributions and offers recommendations for how the tax ecosystem can be improved to better suit a digitalized and global economy.

Book chapter

Introduction: Is the Current Tax System Fit for a Digitalized Economy?

Hansson, Å. & Wernberg, J.

Publication year

2025

Published in

Taxation in the Digital Era. Springer Nature.

Abstract

The introduction explores how digitalization weakens and changes the relationship between physical presence and economic activity, and how this shift is exacerbated by new digital platform business models and a rise in intangible assets. The aim of the anthology is to take a multidisciplinary approach to investigate how digitalization impacts and may impact the ability to collect tax revenue and finance government expenditures, and propose suggestions for ways forward. Tax revenue is the foundation for financing public welfare and government activities, an essential cornerstone in all societies. The chapter questions whether it is time to update the way we tax and organize the tax system to make the system compatible with a digital and global society.