MULTI-LATERAL GLOBAL AND UNILATERAL INITIATIVES, ANTIDOTES FOR EFFECTIVE REGULATION AND ADMINISTRATION OF THE TAXATION OF INTERNET TRANSACTIONS

Abstract

Globalization and e-commerce driven by the internet have reduced the world into a global village or hamlet as you may wish to call it. The reality is the advent of a global single and open market which can be accessed from any part of the world by the press of buttons or keyboards without any form of physical barriers as they were in the brick-and-mortar market. It has become even more intriguing with the incursion of generative Artificial Intelligence (AI), and Augmented Reality (AR)81 to drive both economic activities and other human endeavours both offline and online hence it is the norm globally to leverage the internet in carrying all forms activities with minimal physical contact. The digital space driven by the internet is a two edge sword that is both the bad and the ugly depending on what it is used for provides government and the business communities a veritable tool to carry on their activities at a very cheap, convenient, and more efficient way particularly that most of these transactions or activities are hitherto taxable by nature except on the net underscore the need to subject same to tax on the cyberspace. Part of the efforts to achieve this is by ensuring that the taxation of cyberspace or the internet is regulated through both multi-lateral global and unilateral initiatives for efficient, effective, and coordinated administration of internet tax given the volatility of the internet and the issue of trust and confidence. Regulation had remain a huge challenge and topical issue of discussion until lately Big Fintech has started showing a willingness to be regulated against the initial stand of the industry should self-regulate. Such further deepened the federal government's policy on the digital economy, and ensure tax loopholes in cyberspace are blocked, as well improve government revenue yield. This research is conducted using the doctrinal approach.