After witnessing the agricultural revolution, the industrial revolution and the capitalistic revolution along with free trade and globalization, mankind is now witnessing the IT revolution that has the potential to fundamentally transform every aspect of modern life. It is characterized by the emergence of a new economic system i.e. the 'Digital Economy'. With the rapid growth of the digital sector, the terms of conducting businesses have witnessed an overhaul, thereby necessitating a similar renovation of tax and other regulations governing such businesses. This book addresses the concerns raised by modern business configurations in three parts: The book begins with a foreword from Philip Baker QC, Field Court Tax Chambers, UK. • The first part provides a cursory glance at the number of traditional industries which have now joined the digital tide, along with an outlook of the history and trends of the internet. • The second part of the booklet discusses the role collaborative commons and strategic disruptions have to play in the rise of multi-sided business models. It visualises a move from the monopolistic structure of the economy to a sharing economy, which holds the potential of bringing the marginal costs for businesses down to zero. • The final part addresses the concerns raised by the application of the existing tax and transfer pricing rules to new and upcoming business models and suggests alternative approaches for ensuring fair and timely taxation of the digital sector. This part also highlights the global patchwork of inconsistent regulation existing in this sector and analyses the policy considerations behind such regulations, in order to predict the legislative future of the digital economy.
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