The Sharing Economy and its Challenges
Added on 2020-04-07
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Running head: TAXATION LAWS Taxation LawsName of the StudentName of the UniversityAuthor NoteReferencing Style: Harvard
1TAXATION LAW Table of ContentsAnswer A:........................................................................................................................................2Introduction:................................................................................................................................2Features:.......................................................................................................................................2Black Economy: Characteristics and Examples:.....................................................................2Shared Economy: Features:.....................................................................................................3What is a Shared economy?.........................................................................................................3Answer B:........................................................................................................................................4Shared economy versus Traditional economy:............................................................................4Case Study:..................................................................................................................................5eBay:........................................................................................................................................6Amazon:...................................................................................................................................8Answer C:......................................................................................................................................10References......................................................................................................................................12
2TAXATION LAW Answer A: Introduction: The term economy refers to the production activities, demand and supply of goods andservices and financial situations of a geographical location, measured in monetary terms. Thegoods and services, which are produced within a country and the demand-supply dynamics of thecountry mostly, fall under the domain of the monetary and taxation rules and regulations asdesigned by the governing authorities of the country. These production activities, which areaccounted for in the tax regulations of a country comprises of what is known as white economyof the country. However, there runs a diametrically opposite kind of economy in almost everycountry of the world, which is known as the black economy (Black, Hashimzade and Myles2012). Features: Black Economy: Characteristics and Examples: Though most of the production activities of an economy are accounted for in the taxationaccounts of a country, there are quite a number of productive activities, which though get verymuch carried out in an economy, but does not come under the domain if the legal framework andthe taxing rules and regulations of the country. In simpler words, these activities are notaccounted for in the records of the country and therefore, this portion of the economy of thatparticular country, tends to grow at the cost of the overall accountability of the governingauthorities of the country. These activities comprise of what is known to be the black economyof the country (Alkon 2012).
3TAXATION LAW The term black economy, though sounds to be comprising of illegal activities only, doesnot necessarily be so. There are many activities in the economy, which though notconventionally illegal per se, comes under the domain of the black economy of the country, dueto their inherent nature of unaccountability. For example the case of a legal worker in a transportcompany can be considered, who though being legal is being paid under the table to avoidtaxation procedures. These types of economic activities fall under the domain of the blackeconomy of the country along with the conventionally illegal activities like smuggling andothers. Black economy comprises of a significant share of economic activities of many countriesand therefore, is an issue of concern among the governing authorities, policy-makers, taxingregulators and economists across the globe (Schneider and Enste 2013). Shared Economy: Features: There are different economic frameworks existing in the global economic scenario. Theseframeworks have come to existence over time and after sufficient dynamics in the worldeconomy and each of these economic frameworks has their own inherent properties and featureswhich have different aims and implications on the society or organizations implementing thesemodels. One such model is that of the shared economic framework (Teubner 2014). What is a Shared economy? This type of economic framework refers to a system, in which the private assets,comprising of goods and services, already owned by some individuals of the economy, can beshared with some other private individuals, in exchange of monetary benefits or shared for free,depending upon the nature of the assets and the parties involved in the sharing. This implies thatin the shared economic framework, the private individuals can share their owned and under-utilized assets with those individuals who otherwise do not have the privilege to enjoy these
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