Google Tax did not address tax challenges of digital economy

ITAT has put Google India under 'tax net' by asking it to pay on AdWords revenue of Rs 1,457 cr to Google Ireland

The digital economy was going untaxed, which led to decades of brainstorming at OECD (Organisation for Economic Cooperation and Development), resulting in ‘Action Plan 1-Addressing the tax challenges of Digital Economy’ under the Base Erosion Profit Shifting (BEPS) Project.

Being an observer of the BEPS project, a new terminology was toyed by the Indian tax administrator to tax ‘Googles’ and ‘Facebooks’ of the world — Google Tax. A new kind of equalisation levy at six per cent was introduced to tax digital advertisement platforms effective June 2016. 

But, Google Tax was not the answer to the tax challenges of the