DIG TAX DEPT: it’s very complex and that the initiative that the EC has come out with aims to tackle issues which caused by the direct tax systems. But the problem basically is that the way business is conducted has moved way faster than the tax systems and obviously it will take time to update them. On an international level this update has to be agreed , and that’s where INTERIM which the commission has proposed in the form of the DSE comes into place. So, I think that your answer doesn’t have to do with the fact of doing things wrong or right but it relates to the fact that realities in corporation and in tax systems and legislation has simply moved away from each other and for that we need to change legislation but such things take time. But behind your question there lie political issues as for example the fact that the tax system has not been modernized quickly enough is a political matter.
CFRO AGENT: So basically you are saying that the EC hasn’t been keeping up with the development of these companies? And they still don’t know how to regulate them properly?
DIG TAX: What you should have in mind is that tax is implemented on a national level and not on an EU level.
Answered by: European Commission’s Digital Tax department
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