Law360 Quotes David Rosenbloom on Digital Services Taxes

More governments are poised to collect digital services taxes from big tech companies in the coming year as an international ban on those provisions hangs in the balance.

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There is nothing wrong with DSTs, which target consumption, just like value-added taxes, David Rosenbloom, former director of Treasury's international tax office and current Member at Caplin & Drysdale, told Law360.

"I've never understood what was wrong with digital service taxes," Rosenbloom said. "Nothing as far as I'm concerned."

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The U.S. began to lose credibility in the international tax world when it didn't sign the first BEPS treaty, effectively declining to clamp down on its homegrown digital giants, according to Rosenbloom.

"We decided that we were just not going to tax our companies," Rosenbloom said.

When source countries saw that the U.S. wasn't going to tax big tech, they decided to do it themselves, which is understandable, according to Rosenbloom.

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