Now more than ever, technology is influencing the way we do business, communicate, move through and around the world, access and manage our homes, receive and administer healthcare, make purchases, secure information, and protect our most valuable property. Morrison Foerster keeps pace with this rapidly evolving landscape across our internationally recognized corporate, finance, intellectual property, and litigation practices. MoFo Tech brings together our insights relating to fields such as blockchain and distributed ledger, cloud and as-a-service technologies, driverless cars, drones, fintech, computer hardware and software, the Internet of Things, semiconductors, and telecommunications. The MoFo Tech blog offers real-time, in-depth analyses of the trends and complex issues shaping the global technology industry.<h2>ABOUT MORRISON FOERSTER</h2>Morrison Foerster is a leading global law firm that transforms complexity into advantage for its clients. Our clients include some of the largest financial institutions, banks, consulting and accounting firms, and Fortune 100, technology, and life sciences companies. Highlighting the firm’s commitment to client service, leadership in market-changing deals and impact litigation, and values-based culture, Morrison Foerster has been repeatedly recognized as one of the top 10 firms on The American Lawyer’s A-List. Year after year, the firm receives significant recognition from Chambers and The Legal 500 across their various guides, including Global, USA, Asia‑Pacific, Europe, UK, Latin America, and FinTech Legal. Our lawyers passionately care about delivering legal excellence while living our values. Morrison Foerster has a long-standing commitment to creating a culture that respects and celebrates differences, while providing an inclusive environment. The firm has achieved Mansfield Certification Plus since 2018 as a result of successfully reaching at least 30 percent women, communities of color, and LGBTQ+ lawyer representation in a notable number of current leadership roles and committees. The firm also has a long history of commitment to the community and society through providing pro bono legal services, including litigating for civil rights and civil liberties, improving public education and fostering the wellbeing of children, advocating for veterans, promoting international human rights, enforcing the right to asylum, and safeguarding the environment.

Social

Search

testimage.jpg

MoFo Tech

Scott Llewellyn’s practice focuses on complex litigation in federal and state courts around the country, with an emphasis on patent and trade secret disputes. Over the past decade, he has worked on some of the most significant, high–profile IP cases involving technology for televisions, smartphones, and self–driving cars, relying on 40 years of experience with computer hardware and software. Scott also has significant experience with business divorce cases before courts and arbitrators, involving a mix of trade secret, patent, tort, and contract claims relating to technology development and implementation.Scott also has successfully tried general commercial arbitration and agency matters, briefed and argued various appeals in federal appellate court, and tried more than 20 cases for the Denver City Attorney’s office, most of them jury trials.Scott also has an active pro bono practice, having worked on a variety of criminal and immigration appeals, and having represented Colorado criminal defense and mental health organizations in high–profile suits against the state of Colorado for violations of the constitutional rights of defendants.At MoFo, Scott serves on the board of the Morrison & Foerster Foundation. In the broader legal community, he serves on the boards of the Colorado Lawyers Committee and Drop in the Bucket (a charity that builds wells and sanitation systems in sub–Saharan Africa).After law school, Scott clerked for the Honorable Clarence A. Brimmer, District of Wyoming, and the Honorable Diarmuid F. O’Scannlain, Ninth Circuit. He was also previously an adjunct professor at the Georgetown University Law Center.

llewellyn_scott_blog_150x150.png

llewellyn_scott_common_640x280.jpg

llewellyn_scott_heroretina_2700x1160.jpg

llewellyn_scott_mobileretina_750x1040.jpg

llewellyn_scott_social_600x600.jpg

Partner

Scott Llewellyn’s practice involves complex litigation before state and federal courts around the country, with an emphasis on patent and trade secret disputes for high-tech companies, to which he brings more than 35 years of experience with computer hardware and software, in particular relating to the processing and transmission of audio, video, voice, and other types of data. Mr. Llewellyn has also tried commercial arbitration and agency matters; briefed and argued various appeals in federal appellate court; and tried more than 20 cases for the Denver city attorney’s office, most of them jury trials.

Scott F. Llewellyn

favicon.ico

favicon-16x16.png

favicon-32x32.png

apple-touch-icon.png

MoFo Favicons

MoFo Tech brings together legal insights and in-depth analyses on trends and complex issues shaping the global technology industry, covering fields such as blockchain and distributed ledger, cloud and SaaS technologies, driverless cars, drones, FinTech, computer hardware and software, the IoT, semiconductors, and telecommunications.

Mofo Tech testimage

Announcements

Welcome to the MoFo Tech Blog

Blog - Blog Disclaimer

Blog - Terms of Use

Blog - Privacy Policy

Blog - Attorney Advertising

morrison-foerster-blog-logo.png

Provides insights and reports on the most current class actions lawsuits and product liability issues that affect consumer-facing companies.

Class Dismissed Blog

Class Dismissed

In-depth analysis of developments and trends impacting government contracting.

Government Contract Insights Blog

Government Contract Insights

Government Contracts Insights Blog

Govcon

News and thought leadership from lawyers who are adding value to the legal profession and the communities we call home.

  External-Link

MoFo + Blog

MoFo+ Together

MoFo Tech brings together legal insights and in-depth analyses on trends and complex issues shaping the global technology industry, covering fields such as blockchain and distributed ledger, cloud and SaaS technologies, driverless cars, drones, FinTech, computer hardware and software, the IoT, semiconductors, and telecommunications.

MoFo Tech

  Linkedin

MoFo LinkedIN

MoFo Tech Blog - RSS

Stay Connected

At the Intersection of Technology, Law, and Business

At the Intersection of Technology, Law, and Business

Morrison Foerster - Footer

With effect from 1 April 2020, the UK will start to levy a digital services tax at a rate of 2% on digital services revenues that are attributable to UK users.


Blogs -  Home Button

Home

Blog - Topics

Telecommunications

Artificial Intelligence

Asia

Blockchain

Cloud Services + SaaS

European Union

Financings

Fintech

Hardware

Intellectual Property

Internet of Things

Litigation

Mergers + Acquisitions

Privacy + Data Security

Regulatory

Software

Tech Talks

Topics

Blog - Editors

Editors

Blog - About

About

Blog - Subscribe

Subscribe

UK Digital Services Tax, Effective from 1 April 2020

UK Digital Services Tax, Effective from 1 April 2020 | MoFo Tech

Alistair Maughan

With effect from 1 April 2020, the UK will start to levy a digital services tax at a rate of 2% on digital services revenues that are attributable to UK users.The UK digital services tax (“UK DST”) is intended to apply to large businesses that earn significant revenue from in-scope digital services activities — which include social media, online marketplaces, and associated advertising.BackgroundThe UK DST originates from the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) project — specifically, Action 1 (Tax Challenges Arising from Digitalization).  The OECD is working to implement a long-term solution to the perceived failure of the international tax rules on profit allocation, and, if an agreement is reached, the UK DST will be repealed and replaced with the international measures.  At present, the UK government plans to review the UK DST again in 2025.The UK DST is an interim measure that will impose tax at a rate of 2% on the revenues received in connection with specified digital services activities, which will predominately impact large multinational enterprises.  The UK DST is an extraterritorial tax, meaning that the enterprise subject to the UK DST does not need to be incorporated or have a permanent establishment in the UK for the tax to apply. The development of the UK DST has been subject to much consultation, review, and draft legislation.  The latest legislation for the UK DST (published in the Finance Bill 2020, along with guidance from the UK tax authority, HMRC) brought some clarification regarding the scope of the UK DST ahead of its 1 April 2020 effective date.Who does the UK DST apply to?The UK DST is aimed at large businesses that (on a group-wide basis) generate:<ul><li>more than £500 million in annual worldwide revenues from in-scope digital services activities; and</li><li>more than £25 million in annual revenues from in-scope digital services activities linked to UK users.</li></ul>Where a business’s revenues from in-scope digital services activities exceed these thresholds, the UK DST will apply to that business.  The in-scope digital services activities are:<ul><li>social media services; </li><li>internet search engines; or</li><li>online marketplaces.</li></ul>The in-scope digital services activities also include associated online advertising services, which derive significant benefit from association with the social media service, search engine, or online marketplace.  A UK user includes individuals and legal persons that it is reasonable to assume are in the UK or are established in the UK.Next Steps and ComplianceBusinesses that are potentially affected by UK DST should undertake a review of their activities to determine whether operations fall within the specified digital services activities of the UK DST.  Determining which services should be tested for compliance with the UK DST is a matter of judgment and depends on the particular facts and circumstances of the business and any wider group.  The UK DST should also be considered in the context of transfer pricing rules, where transactions are made between associated members of a group.  Parties should consider whether the entity that paid and/or is liable to UK DST would have borne the cost of the expense or if the expense would be factored into the transfer price.The UK DST is payable and reportable on an annual basis.  The due date of the tax is the day after nine months following the end of the accounting period.  The total UK DST liability is calculated on a group‑wide basis but charged to the individual members of the group that realise the revenue that contributes to the total.  A member of the group can be nominated to comply with the UK DST, otherwise the ultimate parent of the group will be responsible.There are no specific rules for determining the deductibility of UK DST against any other tax liability.  Following general UK corporation tax principles, where a UK DST liability expense is incurred wholly and exclusively for the purpose of the business’s trade, it is likely to be deductible.For groups that have a low operating margin from providing in-scope activities to UK users, an election to calculate the UK DST under an alternative calculation can be made.  Relief can also be claimed for in‑scope cross-border transactions that lead to revenue being taxed both under the UK DST and under an equivalent regime in another jurisdiction.  The relief reduces the UK DST revenues by 50%.

More

Current State of the AI VC Financing Market

The Bad Guys Have AI, Too

MoFo Tech Law Summit – Tech and Antitrust: Policy Shifts in the Second Trump Administration

MoFo Tech Law Summit – Responsible Tech: Policy Becomes Practice

AI Dynamics: Regulatory Landscape and Industry Insights

LinkedIN