By Demond Cureton | XR Today
Authorities should regulate and tax the Metaverse to avoid tax dodgers operating on the upcoming spatial communications platform, Christine Kim, Harvard Legal Scholar, said in a recent research paper.
According to the document “Taxing the Metaverse,” Kim argues that authorities should treat the Metaverse like “a laboratory” for exploring novel policy development.
Kim said, “Governments can use the Metaverse as a laboratory for experimenting with cutting-edge policy, which may benefit broader audiences beyond tax policymakers interested in the Metaverse’s future”
She added that the finance sector should regulate the Metaverse under specified tax codes, adding, “Because economic activity within the Metaverse satisfies the Haig-Simons and Glenshaw Glass definitions of income, its exclusion will create a tax haven”
The scholar wrote that the Metaverse’s digital activity monitoring activities could “track individual wealth,” allowing regulators to police the platform. Doing so could allow governments to tax income in real time, triggering sweeping changes across tax laws in the United States.
Similar discussions over metaverse law have come from the Rose Law Group, a pioneer in the space. XR Today recently interviewed Jordan Rose, Founder and President, Rose Law Group to explore the potential pitfalls over intellectual properties (IPs) across the spatial communications platform.