I define the digital economy fom the perspective of how people and businesses engage in it:
- Transacting business with virtual currencies, such as Bitcoin;
- Providing digital goods and services; and
- Transacting business enhanced by the Internet, such as finding customers, including working in the “sharing economy.”
I've got an article in CCH's Journal of Tax Practice and Procedure (May-June 2015) on "Taxation and Today's Digital Economy," with more details as to the issues. It also includes a due diligence worksheet that hopefully tax practitioners will find useful.
What do you think? Any additional issues or due diligence tips?