Examining the potential tax implications of Transactions in Digital Intellectual Property

-Avni Sharma

The contemporary digital aeon envelops numerous potential tax implications which may have an effective reverberation on the economy. The biggest ventures like Google and Facebook are fetching their greatest revenues by online advertisements and tapping the personal interests of the potential buyers. Similarly, companies have also begun investing in advertisement through influencer marketing, wherein, they tap their potential customers’ social media preferences and accordingly reach out to the content creators who then advertise their products through processes like product reviews and various creative content. Needless to say, there is a high scope of tax revenues from these advertisements because of the amount that is involved in the process of advertising of products and services.

Online advertisements are present in any and every form on the digital space today. Majorly, advertisements can be bifurcated into three segments. First, through online advertisements on regular browsing on the internet; Second, influencer marketing on social media platforms through brand integrations with bloggers and content creators on platforms like YouTube and Instagram form a major portion of advertisements online; Third, advertisement through Over the Top Platforms (OTT). In this article, the author intends to analyse the tax regime separately for revenue sources and suggest a uniform tax regime along with analysing the impediments.

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