Surfing the problems

Article Abstract:

Electronic commerce raises important taxation issues. Because the Internet allows vendors to sell their products in other territories without physically being there, there is significant potential for them to avoid local source taxation. In 1996, the US Treasury issued a position paper titled 'Selective Tax Policy Implications of Global Electronic Commerce,' which recommends neutrality in taxing business transactions. It also advocates the adaption of current international taxation rules instead of formulating new ones. The European Commission released its own paper, 'A European Initiative in Electronic Commerce' in 1997, which supports the US Treasury's position. However, it may not be easy to apply existing principles of direct taxation. Among the issues that need to be resolved include the characterization of income generated, the significance of residence and source, permanent establishment, and transfer pricing. These are discussed.

Telegraph & other communications, Specialized Telecom Services, Wired Telecommunications Carriers, Internet, Internet services

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And they're off

Article Abstract:

Many UK betting firms are moving to Gibraltar, largely to avoid betting taxes. Much of UK business is concentrating on electronic commerce, which is less expensive than a telephone service, can be easily moved, and is often taxed at a lower rate than traditional business.

United Kingdom, Management, Gambling industry, Gibraltar

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A surf around the issues

Article Abstract:

A guide to the taxation implications of electronic commerce is presented, with focus on the international aspects of the direct taxation of this type of enterprise, and initiatives designed to encourage UK electronic commerce.

Reports, Organization for Economic Cooperation and Development

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