Taxation & Electronic Commerce

Electronic commerce is rapidly becoming a common way for individuals to transact business with companies located both locally and throughout the world. Retailers recognize the potential of electronic commerce and respect the low overhead that it commands (by reducing the need for a physical presence); consumers respond to the convenience and the often low prices which are offered on the Internet. Government agencies also recognize the potential of electronic commerce in the tax revenues which such commerce represents. Tax laws were designed for a traditional manufacturing society where companies had clear physical presence in a particular location; these laws are difficult to apply to electronic commerce, and regulators have been slow to adopt taxation policies which address the unique aspects of electronic commerce. This research examines the issue of taxation and electronic commerce with particular attention given to the taxation of Internet Service Providers (ISPs) by state tax agencies, the Internet Tax Freedom Act, and the various points of view of the stakeholders participating in this international debate.

Because of the import of this issue to business and local government, considerable analysis has been performed and is readily available in the field. The following literature review summarizes the key points of the debate surrounding the issue of Internet taxation; far more literature is available than can be included in thi

Related Essays

Internet Service Providers and Taxation .... This research examines the issue of taxation and electronic commerce with particular attention given to the taxation of Internet Service Providers (ISPs) by .... (6540 26 )

AOL Business Analysis .... related export controls, content regulation, consumer protection, advertising, intellectual property, privacy, electronic commerce, and taxation, tariff and .... (1740 7 )

CISCO SYSTEMS, INC. .... Thus far, the lawmakers have backed down on taxation proposals for the .... the proportion of economic activity accounted for by electronic commerce increases, the .... (926 4 )

The Internet, e-Commerce & Government .... regulations; 2) the question of taxation policy with .... all in crafting policies on electronic money, high .... tech banking services, and e-commerce regulation (Anason .... (3122 12 )

Saudi Internet .... commerce should expect government regulation and taxation to go along with the privilege, "It is not difficult to foresee that electronic commerce within the .... (1835 7 )

nerated a "plain English" summary of the Act. The Act, which took effect in October 1998, is seen by its advocates as a way to give the Internet time to grow and expand while preventing predatory taxation which would inhibit that growth. Originally introduced in March 1997, the Act underwent considerable revisions as lawmakers worked with local governments and industry to reach a compromise which could be passed. In March 1998, Cox held a news conference at which the National Governors' Association, the National Conference of Mayors, the National Conference of State Legislatures, the National Association of Counties and the National League of Cities expressed their support for the legislation (Cox, 1999, p. 1). The Act bans taxing Internet access for three years (until 2001). This means that state and local governments are prevented from implementing new taxes on ISP access such as the $19.95 paid by many America On Line subscribers on a monthly basis. Those states which had already implemented such access taxation, including Connecticut, Wisconsin, New Mexico and South Carolina, among others, will be allowed to maintain those taxes. Some of these states, including Connecticut and South Carolina, indicated that they would a

Category: Government - T