Revision Law Flashcards
What are the three common forms of electronic contracting modalities mentioned?
Terms of use (browse agreement), Contractual Terms (click agreement), and Community Policy (log-in agreement).
What is the significance of “Safe Harbour” in law?
It provides protection or immunity from certain consequences under specific conditions, acting as a legal safety net.
What are two main concerns addressed by digital advertising legislation?
Spam and the use of cookies for personalized advertising.
What is the main object of protection under the EU software protection directive?
Computer software as an expression, excluding ideas and principles.
What are consumers’ rights in digital transactions according to consumer law?
Transparency, fair treatment, and contractual protection safety.
Define “Smart Contracts.”
Digital and self-executing agreements that run on a computer program, using blockchain technology for security.
What is the role of ICPEN in consumer protection?
Facilitating international cooperation, promoting consistent consumer protection, and combating cross-border deceptive practices.
Differentiate between property rights and personal contractual rights.
Property rights are rights over goods, things, and assets, enforceable against anyone, whereas personal contractual rights are enforceable only against specific individuals or entities.
What distinguishes crypto-assets from traditional assets?
They are information or data-based assets, behaving as “rival goods” and often using blockchain technology for secure transactions.
What are the key features of VAT as a neutral tax for entrepreneurs?
The right to deduct VAT paid on purchases, ensuring the tax is effectively imposed on the final product’s value.
What principle does a progressive tax system follow?
The average tax burden increases with income.
What is the main goal of Double Tax Conventions (DTC)?
To avoid double taxation and prevent fiscal evasion with respect to taxes on income and capital.
What does the term “Permanent Establishment” (PE) mean in international taxation?
A fixed place of business through which an enterprise’s business is wholly or partly carried on.
Describe the concept of “digital assets” in the context of property.
Assets that consist of information in digital form, including intellectual property, data, and crypto-assets.
What are the implications of the digitalised economy for international taxation?
Challenges in taxing businesses that operate without physical presence, leading to a need for updated tax rules.
Define the OECD’s “Pillar One” in taxing digital businesses.
It aims to reallocate taxing rights to market jurisdictions, irrespective of physical presence, for large multinational enterprises.
What does the OECD’s “Pillar Two” propose?
A global minimum tax of 15% to ensure that multinational enterprises pay a minimum level of tax
What distinguishes a “Digital Services Tax” (DST)?
A tax on gross revenues of certain online services, primarily affecting large digital businesses.
How does VAT handle cross-border transactions?
By applying the destination principle, taxing goods and services in the country where they are consumed.
What is the role of the “Diverted Profits Tax”?
To tax profits shifted out of a country by multinationals to avoid taxation, by taxing diverted profits at a higher rate.
What legal document primarily protects software in the EU?
EU software protection directive.
What are the main types of disputes resolved by Online Dispute Resolution (ODR)?
Disputes arising from the use of digital platforms and services.
What principle underlies the need for consumer protection in digital transactions?
The identification of consumers as the weaker party in transactions and their limited technical knowledge.
How do smart contracts ensure security and trust in digital agreements?
By using blockchain technology, making the contracts transparent, secure, and unchangeable.
What is the purpose of the International Consumer Protection and Enforcement Network (ICPEN)?
To facilitate international cooperation among consumer protection authorities.
How are digital assets typically secured and transferred using blockchain technology?
Through the creation and management of personal digital wallets that use unique IDs for assets.
What defines a property right in the context of digital assets?
Rights over goods, things, and assets that are enforceable against anyone, not just specific parties.
What is the OECD’s role in addressing taxation challenges posed by the digital economy?
Leading discussions and proposing frameworks like the Unified Approach to grant more taxing rights to market jurisdictions.
What triggers the application of a Diverted Profits Tax?
Taxable events related to the avoidance of taxable presence or transactions lacking economic substance that obtain tax benefits.
Why was VAT introduced as a neutral tax for entrepreneurs?
To ensure that the tax is imposed on the final consumption value while allowing businesses to deduct VAT on inputs.
What issue does the EU face in taxing the digital economy?
Balancing the internal market principles with the competence over direct taxes, which remains with Member States.
How do Double Tax Conventions (DTC) prevent fiscal evasion?
By allocating taxing rights between countries and providing methods to eliminate double taxation.
What criteria are used to determine the existence of a Permanent Establishment (PE)?
A fixed place of business or a dependent agent who acts on behalf of an enterprise.
What is the rationale behind the development of Digital Services Taxes (DST)?
To tax revenues generated from digital services provided in a country, regardless of physical presence.
How does VAT address cross-border services in the EU?
By applying the destination principle, where services are taxed in the country where the consumer is located.
What challenge does “scale without mass” pose for traditional taxation models?
It allows companies to have significant economic presence without physical presence, complicating taxation.
Why are smart contracts seen as revolutionary in legal agreements?
They automate enforcement without intermediaries, based on predetermined conditions.
What does the “tax back” mechanism proposed by OECD’s Pillar 2 aim to address?
It aims to ensure a minimum tax rate is paid globally by multinational enterprises, countering low-tax strategies.
How do personal data and user participation challenge existing tax laws?
They create value for digital businesses not accounted for in physical presence-based tax models.
What is the impact of technology on property rights, especially in the context of digital assets?
Technology facilitates the identification, transfer, and enforcement of rights over digital assets, transforming traditional notions of property.
