slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
TAXATION IN THE AGE OF E-BUSINESS Protecting revenue, seizing new opportunities PowerPoint Presentation
Download Presentation
TAXATION IN THE AGE OF E-BUSINESS Protecting revenue, seizing new opportunities

Loading in 2 Seconds...

play fullscreen
1 / 20

TAXATION IN THE AGE OF E-BUSINESS Protecting revenue, seizing new opportunities - PowerPoint PPT Presentation


  • 203 Views
  • Uploaded on

TAXATION IN THE AGE OF E-BUSINESS Protecting revenue, seizing new opportunities. CHALLENGES OF E-TAXATION. JURISDICTION ISSUES. LOCATION OF ACTIVITIES. IDENTIFICATION ISSUES. ANONYMOUS USERS. ENFORCEMENT ISSUES. LESS INTERMEDIARIES. TAXATION OF IMPORTED GOODS.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'TAXATION IN THE AGE OF E-BUSINESS Protecting revenue, seizing new opportunities' - tiger


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

TAXATION IN THE AGE OF

E-BUSINESS

Protecting revenue,

seizing new opportunities

challenges of e taxation
CHALLENGES OF E-TAXATION

JURISDICTION

ISSUES

LOCATION

OF ACTIVITIES

IDENTIFICATION

ISSUES

ANONYMOUS

USERS

ENFORCEMENT

ISSUES

LESS

INTERMEDIARIES

slide4

For goods which are

traded on-line

delivered physically

No new issues:

taxation at the

border

Problem of:

- identification of

taxpayer,

- definition of

jurisdiction,

- enforcement of

payment

For goods that are

traded and delivered

electronically

(digitizable goods)

Books, music, software,etc

digitizable goods policy implications
Revenue implications are not substantialDIGITIZABLE GOODS: POLICY IMPLICATIONS
  • Heavy implementation burden of e-taxes

CONTINUE CURRENT

MORATORIUM

fundamental principles of income taxation
FUNDAMENTAL PRINCIPLES OF INCOME TAXATION
  • PERMANENT ESTABLISHMENT
  • RESIDENCE-BASED TAXATION
  • SOURCE-BASED TAXATION
source based taxation
Applied in the jurisdiction where economic activity takes place, if permanent establishment is determined (“NEXUS”)SOURCE-BASED TAXATION

RESIDENCE-BASED TAXATION

  • Applied in the jurisdiction of the place of residence of the person/business
permanent establishment in the cyber world
Is a web-site a permanent establishment?Permanent establishment in the cyber-world
  • Is a server operating a web-site a permanent establishment?
  • Can ISP be considered to constitute a permanent establishment of the business whose web-sites they host?
slide12
VAT & SALES TAX

Collected by seller and borne by the consumer

Different rules apply to different buyers (consumer vs. business; foreign vs. domestic)

Requires the cooperation of intermediaries

  • E-COMMERCE CHALLENGE
    • Incentive to relocate outside countries imposing VAT
    • Elimination of intermediaries
adapting consumption taxes to e commerce
IDENTIFY POTENTIAL NEW INTERMEDIARIES

ISPs

credit card companies

banking and payment system providers

telecommunications companies

ADAPTING CONSUMPTION TAXES TO E-COMMERCE
adapting comsumption taxes to e commerce
INTERNATIONAL COOPERATIONAgreement on whether taxation should take place in the country where consumer is based, or in the country where producer is based or, where consumption occursADAPTING COMSUMPTION TAXES TO E-COMMERCE
slide16

ATTRACT

PRODUCTIVE

INVESTMENT

MORE MOBILE

PLAYERS

WIDER TAX

BASE

NEW SERVICES

MAINTAIN

REVENUE

LEVELS

MORE EFFICIENT

ADMINISTRATION

principles of e taxation
TECHNOLOGICAL NEUTRALITYPRINCIPLES OF E-TAXATION
  • EFFICIENCY
  • CERTAINTY AND SIMPLICITY
  • EFFECTIVENESS AND FAIRNESS
  • FLEXIBILITY
slide18

WRAPPING-UP…..

INCOME TAXES

COMSUMPTION

TAXES

IMPORT TAXES

the way ahead
THE WAY AHEAD
  • International cooperation: E-businesses escape notions of residence and location
  • Cooperation with business: use solutions that do not hinder technological advance
slide20
PREPARE WHILE IMPACT REMAINS TOLERABLE
  • KEEP E-TAX LIGHT
  • PARTICIPATE IN INTERNATIONAL DEBATE
  • SEIZE THE OPPORTUNITIES