Abstract:

As the digital world is merging into the real world, more and more people of all ages and backgrounds are participating in the digital economy. Information technologies are steadily permeating all spheres of life - entertainment, education, health care, security, trade, international relations. Technology has made the world smaller, enabling professionals to work remotely from various locations and allowing employers to find the best candidates for specific projects out of an enormous pool of freelancers available across the globe. The rising popularity of remote work stimulates the free international movement of capital, which, in turn, should alert the states to the danger of revenue losses due to greater opportunities for tax fraud and tax evasion. If employers and freelancers reside in different countries, employers are likely to dodge employment taxes and evade paying social security contributions. To counter these risks and prevent financial crimes, tax authorities have embraced a wide range of digital tools, which can, for example, better inform taxpayers (employers and freelancers) about the main aspects of taxation such as the persons responsible for paying labour taxes, tax rates, tax base, tax period, tax exemptions and tax penalties.