The challenges of taxing global digital companies like Google and Facebook

Frustrated by futile efforts to tax digital companies and in fear that they may cede their tax base, countries began adopting measures unilaterally

What do Google, Facebook and Apple have in common? Other than that these are large corporations with a digital presence globally, they have all been criticised for paying relatively low rates of corporate tax. It is increasingly evident now that digital companies present a special challenge to tax since they intensively employ intangibles registered in low tax jurisdictions and can operate in the market without necessarily being physically present.
 
Recognising these challenges to tax the digital economy, Task Force on Digital Economy at the Organisation for Economic Co-operation and Development (OECD) suggested three measures -- equalisation levy, withholding tax