Renuka’s Research: Urgency of Tax Justice in the Digital Age

 

The Urgency of Tax Justice in the Digital Age: Why Renuka’s Research Demands Public Discourse??

 By Advocate C.V. Manuvilsan

In an era where digital transactions have overtaken traditional business models, Renuka V.’s doctoral research on the taxation of the digital economy stands as a crucial piece of scholarship. Her work, "The Fairness of Laws that Tax Digital Economy in the Backdrop of Concepts and Theories of Taxation," is not just an academic exploration—it is a call to action for governments, policymakers, legal professionals, and society at large.

 

Why Must We Discuss the Synthesis of Her Work?

 

1. The Digital Economy Has Redefined Economic Borders

• For centuries, taxation has been deeply rooted in the concept of territorial jurisdiction—a business had to have a physical presence in a country for tax liability to arise. However, multinational digital giants like Google, Facebook, Amazon, and Apple operate in numerous countries without a fixed physical presence, leading to massive tax avoidance and revenue losses for nations.
• Renuka’s work systematically examines how traditional taxation theories, such as benefit theory and ability-to-pay theory, are struggling to adapt to the borderless nature of digital transactions. The very foundation of state revenue is under threat, and unless addressed, digital corporations will continue to exploit loopholes, leaving developing and emerging economies without their fair share of tax revenues. 

2. A Global Taxation Framework is Urgent

• Currently, international organizations like the OECD (Organisation for Economic Co-operation and Development), the UN, and the EU are working to standardize digital taxation, yet there is no single global solution. Some nations have introduced unilateral Digital Services Taxes (DSTs), but this has led to trade tensions, particularly with the United States, where many tech giants are headquartered.
• Renuka’s thesis not only critiques these fragmented taxation attempts but also offers practical solutions, such as rethinking legal pluralism and enhancing global cooperation in tax governance. Her argument that the UN, rather than the OECD, should lead global tax policy discussions is particularly noteworthy, as it ensures that emerging economies have a greater say in framing tax laws that impact them.

3. Digital Taxation and Social Equity

• Beyond just technical legal arguments, Renuka’s research underscores the ethical dimension of digital taxation. The rise of data-driven capitalism has enabled large corporations to monetize user data without compensating the very economies that generate it. This is especially critical in nations where these platforms profit from users’ engagement but contribute little to national development through taxes.
• Taxation is not just a revenue-collection tool; it is a tool for social justice. The lack of fair taxation on digital businesses widens the gap between wealthy corporate entities and struggling economies. Renuka’s work forces us to re-examine the role of taxation in creating a just society where digital corporations are not above the law but rather responsible stakeholders contributing to national economies.

4. Need for Legislative and Judicial Reform

• One of the strengths of Renuka’s research is her analysis of judicial responses across multiple jurisdictions. She highlights landmark cases where courts have struggled to define the concept of "permanent establishment" in the digital space. Her research urges lawmakers and courts to redefine taxation principles in light of digital advancements.
• Her argument for "Cyberspace as a Global Common" is particularly compelling. If the digital economy functions beyond borders, should taxation models also evolve beyond territorial limitations? This is a question legal scholars and governments must address.

5. A Call for Legal Practitioners and Policymakers to Take Action

• As a legal professional, I find Renuka’s work to be an essential guide for future tax policy reforms. Her research goes beyond mere theoretical exploration and provides practical solutions to help governments craft laws that ensure fair taxation without stifling innovation.
• If legal professionals, economists, and policymakers do not actively engage in this debate, nations will continue to lose billions in revenue, and economic disparities will widen further. Discussions on how to fairly tax digital businesses must take center stage in legislative chambers, academic institutions, and global economic forums.

6. Time to Engage in the Tax Justice Debate

Renuka V.’s research is more than just an academic dissertation—it is a critical intervention in one of the most pressing tax policy challenges of our time. If the law fails to adapt to the digital economy, it will continue to be exploited by those with the resources to manipulate tax loopholes.

It is imperative that legal scholars, policymakers, and business leaders take note of her work and engage in meaningful discussions on how to structure fair and just tax systems for the digital era. Her thesis deserves a global audience, as the solutions she proposes could reshape international tax laws for decades to come.

The debate over taxing digital businesses fairly is not just about economics—it is about the very future of social and economic justice in a digital-first world. We must act now, and Renuka’s research provides the foundation for that action.

  cvmanuvilsan@gmail.com

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