In the virtual space, everything is in development and has not yet acquired a completed form, therefore, even internal legislation does not provide answers to all questions regarding digital entities. Their categorization for the purposes of international tax treaties is even more complex, which, although characterized by “immersion” in national rules, requires compliance with the object and purpose of the agreements. And this raises numerous theoretical questions, especially since the most widely used international agreements are based on the provisions of the Model Tax Convention of the Organisation for Economic Co‑operation and Development, developed in the first half of the 20th century. The article examines the legal nature of digital financial assets and, based on the conducted analysis of an economic‑legal nature, proposes an author’s categorization of assets for the purposes of international taxation. Research methods: general scientific (analysis, synthesis, comparison, generalization), comparative law, formal law. The author proceeds from the understanding of digital currency (cryptocurrency) as an electronic (digital) representation of value. Developing the research on digital financial assets, the author finds that it is impossible to consider the tax and legal consequences of their circulation without raising questions about money and without subjecting the category of value to theoretical and legal analysis. The paper discusses the issues of delineating tax jurisdictions, as the classification of income from an asset into one of the types of income under international treaty rules affects the possibility and extent of tax collection, as well as the determination of which state (the state of residence and/or the state of source of income) has grounds for taxation. The author suggests tests for categorizing digital financial assets. Special attention was drawn to the income received from illegal (prohibited) transactions. The article notes that the study of the legal nature of digital financial assets goes beyond the scope of industry issues, the “digital veil” can be either removed for tax purposes or retain its significance. The article is the first attempt in Russian legal science to categorize digital financial assets from the perspective of international tax law.
Inna A. Khavanova (Wed,) studied this question.