International Journal of Advanced Economics, Volume 6, Issue 3, March 2024 Adelakun, Nembe, Oguejiofor, Akpuokwe, & Bakare, P.No. 26-35 Page 26 LEGAL FRAMEWORKS AND TAX COMPLIANCE IN THE DIGITAL ECONOMY: A FINANCE PERSPECTIVE Beatrice Oyinkansola Adelakun¹, Joseph Kuba Nembe², Bisola Beatrice Oguejiofor³, Chidiogo Uzoamaka Akpuokwe 4 , & Seun Solomon Bakare 5 ¹Independent Researcher, Illinois, USA ²Independent Researcher, New York, USA ³Independent Researcher, Lagos, Nigeria 4 Independent Researcher, Seattle, USA 5 Grotius Centre for International Legal Studies, Leiden University, the Netherlands ___________________________________________________________________________ Corresponding Author: Chidiogo Uzoamaka Akpuokwe Corresponding Author Email: uzomdiogo@gmail.com Article Received: 01-01-24 Accepted: 01-03-24 Published: 18-03-24 Licensing Details: Author retains the right of this article. The article is distributed under the terms of the Creative Commons Attribution-Non Commercial 4.0 License (http://www.creativecommons.org/licences/by-nc/4.0/), which permits non-commercial use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the Journal open access page. ___________________________________________________________________________ ABSTRACT In the wake of rapid digitalization, the landscape of commerce has undergone a profound transformation, presenting unprecedented challenges to traditional tax systems and legal frameworks. This abstract examines the evolving dynamics of tax compliance within the digital economy through the lens of finance. The digital economy encompasses a broad spectrum of economic activities facilitated by digital technologies, including e-commerce, digital platforms, and virtual currencies. These innovations have blurred the boundaries of traditional tax jurisdictions, leading to complexities in determining tax liabilities and enforcement mechanisms. As such, the adequacy of existing legal frameworks in addressing tax challenges posed by the digital economy has come under scrutiny. From a finance perspective, ensuring tax compliance in the digital economy involves understanding the intricate interplay between technology, business models, and regulatory frameworks. Digital businesses often operate across multiple jurisdictions, exploiting loopholes and jurisdictional discrepancies to minimize tax obligations. Such practices have raised concerns regarding tax fairness and the erosion of OPEN ACCESS International Journal of Advanced Economics P-ISSN: 2707-2134, E-ISSN: 2707-2142 Volume 6, Issue 3, P.No.26-35, March 2024 DOI: 10.51594/ijae.v6i3.900 Fair East Publishers Journal Homepage: www.fepbl.com/index.php/ijae