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Ronnie Fox
Business Law Review
Volume 33, Issue 6 (2012) pp. 152 – 153
https://doi.org/10.54648/bula2012035
Abstract
This September will see Britain recommence its fight to stop Europe making it difficult for our employees to work more than 48 hours per week. The Working Time Regulations 1998 set out exceptions to the limiting 48-hour working week. Many employers rely on one of the main exceptions within those Regulations and argue that their senior executives work 'autonomously' and can therefore work as many hours as they want. What will happen if this loophole closes? What if Europe refuses to allow us to ask our middle management and junior staff to sign a document in which they 'opt out' of the 48-hour working week? Should employers start to focus less on potential loopholes in the law and more on a business strategy to work smarter? The law currently restricts the right to request flexible working to working parents or those with ageing relatives. Sometimes such a request can stall or, at worst, end careers, resulting in an unnecessary loss of talent. Flexible working can instil loyalty in workers and improve staff morale. Remote working can provide the employer with access to new markets and invariably delivers a better and extended service for clients. A high percentage of office space is not utilised. Transport strikes and the imminent Olympics will take its toll on London's commuters and on the environment. Employers should think imaginatively and consider extending the right to work both flexibly and remotely to more of its employees.
Extract
This article analyses the tax attractiveness of locations for investments in digital business models. It identifies and assesses relevant tax rules affecting domestic and cross-border digital business models across thirty-three countries. The computation of average effective tax rates is based on the neoclassical investment model of Devereux/Griffith. Our results help to evaluate tax-related location factors in the digital economy by combining the most relevant tax parameters and rules for taxable nexus in an objective measure. We find that investments in digital business models face generally lower average effective tax rates than those in traditional business models since a high share of investment costs is immediately expensed and a higher share of activities falls within the scope of countries’ tax incentives for R&D input and/or output. While more generous depreciation rules for digital investments such as software make countries relatively more attractive, our results are mostly driven by statutory tax rates, special incentive schemes such as Intellectual Property (IP) Boxes, R&D credits, and super-deductions. Overall, we acknowledge an increasing trend in tax competition for digital businesses.
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