Digitalization, Tax and The Sovereignty Problem

Globalization and developments in the social, cultural, technological, economic, human and digital world make states more dependent on each other. Industry 4.0, the application of information technology to traditional industrial processes completely changes industrial processes. Information technologies should be used in every field in order to progress in the information economy. In the production of these new technologies and the domination of these technologies, it is of great importance that the state and society act jointly and the studies are implemented within the framework of the plan.

Globalization shrinks the scope of the concept of sovereignty by giving power to a legal order above the nation-state. While globalization continues, regionalization also emerges as a serious trend. In fact, it does not seem easy to preserve sovereignty without regional cooperation and cooperation in the intense international competition environment created by globalization. Globalization brings local cultures to the fore, on the one hand, and eliminates the possibility of nation-states to act as they wish within their own borders, in isolation from the world.

There is no global authority to set rules to be followed by all states. Agreements between states are difficult to achieve, and strong states make supranational corporations or weak states pay the negative external cost of globalization. In this sense, oligopoly markets, in which a small number of firms with an increasing volume become dominant, do not represent the dominance of the free market. States now need to act not to control the markets, but to create a competitive environment in which markets can function properly. When the competitive environment is not provided, the dominance of the market leads to the emergence of a number of oligopolies/monopolies and the allocation of social resources without efficiency. As time passes, the technological and financial gap between supranational companies and domestic and national companies grows. The delay in the measures to be taken to prevent this unfair competition reduces the positive effect of the measures. “The technological and financial gap between supranational firms and domestic and national firms” is a sufficient justification to make positive discrimination against domestic national companies in order to prevent unfair competition.

In this context, the legislative work and what can be done against the industry, industrial digitization and oligopolizations in this field will be evaluated.