International Journal of Economics and Financial Issues ISSN: 2146-4138 available at http: www.econjournals.com International Journal of Economics and Financial Issues, 2022, 12(6), 22-29. International Journal of Economics and Financial Issues | Vol 12 • Issue 6 • 2022 22 Comparative Analysis of Taxation Techniques and Models used in Digital Economy Mark Rowland Bruce*, Adebayo Felix Adekoya, Samuel Boateng, Peter Appiahene Department of Computer and Informatics, School of Sciences, University of Energy and Natural Resources, Ghana. *Email: bruce493000@yahoo.com Received: 25 July 2022 Accepted: 28 October 2022 DOI: https://doi.org/10.32479/ijef.13544 ABSTRACT In terms of a digital tax, there are certain interesting characteristics of the digital economy and its business structures. Some of these characteristics include mobility, data dependency, network efects, and buildup of multi-faceted business versions, a propensity toward dominance or monopoly, and unpredictability. Our study ofers a digital economy model that explicitly accounts for a number of these aspects. The economic structures of platforms are bidirectional, they rely signifcantly on data collection, and they dominate the market. This model is then used to examine the efect of diferent taxes suggested to target implicitly dominating digital platforms. The aim of this paper was to examine various digital taxation models that are currently in use in other countries. The paper ends by proposing some recommendations to overcome some of the challenges and issues raised in this paper. Keywords: Digital, Taxation, Digital Platforms, Digital Economy, Digital Service Tax JEL Classifcations: P51 1. INTRODUCTION In addition to its function as a source of technological and organisational change and as one of the primary development drivers, the so-called Digital Economy has become a key issue for governments, especially fscal authorities. Currently, the most signifcant players in the digital economy are the most lucrative enterprises in the global economy. In 2015, Google’s total revenue was $74.5 billion, and the company had an operating proft of $23.4 billion. With a market capitalization of about $300 billion at the end of 2015, Facebook’s shares have more than quadrupled in value since its IPO back in 2012. However, several multinational corporations are recognized for their low efective tax rate and their capacity to design global fscal plans in order to capitalize on fscal competitiveness worldwide. In reaction to severe budget restrictions brought on by the fnancial crisis, governments have launched a number of measures to capture a greater share of the digital value generation. Base erosion and proft shifting was the focus of an OECD study published in 2014 which focused on preventing earnings from being moved to territories with lower corporate tax rates. “Equality, simplicity, and efectiveness are what the European Commission’s new tax avoidance package intends to make company taxes in the EU. According to a 2014 OECD report, “the digital economy and its business designs exhibits a number of features that may be crucial from a tax point of view. These include movability, dependency on data, network efects, the buildup of multi-sided business designs, a trend toward volatility and monopoly. Our research provides a model of the digital economy that explicitly accounts for a number of these factors. The economic systems of platforms are bidirectional, they depend heavily on data collecting, and they dominate their particular marketplaces. This model is then used to examine the efect of potential taxes on digital platforms that dominate the market implicitly. This Journal is licensed under a Creative Commons Attribution 4.0 International License