Published Online:July 2026
Product Name:The IUP Journal of Law Review
Product Type:Article
Product Code:IUPLR040726
DOI:10.71329/IUPLR/2026.16.3.44-55
Author Name:Kaushiki Brahma and Sansita Swain
Availability:YES
Subject/Domain:Law
Download Format:PDF
Pages:44-55
The nature of global labor is changing because of rapid technological innovation and shifting labor market dynamics. Old models of work are being reshaped as remote work, digital nomadism, and gig economy redefine how people make money. The effectiveness of tax administration systems in addressing the challenges of contemporary work arrangements is vital to ensure equity, accuracy, and compliance in tax systems. This study analyzes the complexities of the relationships shaped by work arrangements and direct tax structures, while highlighting the challenges present in the platform and gig economy. It seeks to examine real-world income tax systems through a comparative study of the UK and New Zealand and review the recent trends, case studies, and regulations regarding gig economy. Comparative insights from jurisdictions such as the UK and New Zealand highlight the importance of clear worker classification, simplified compliance mechanisms, and proactive engagement between tax authorities and platforms. Ultimately, the sustainability of India’s gig economy depends on building a tax system that is responsive to technological change, capable of addressing cross-border complexities, and inclusive of diverse worker categories.
The informal character of gig work and the lack of withholding mechanisms, common in traditional employment, often led to underreporting of income. Moreover, the tax systems in many countries are not yet equipped to handle the multi-jurisdictional aspects of the gig economy, where a single worker might earn income from clients in various countries, each with different tax obligations.