Taxation of E Commerce : A Brief Look at the Major Issues

다국어 초록 (Multilingual Abstract)

The growth of the Internet and emergence of E commerce as an important form of international business have produced astounding benefits for many people around the world. In less than a decade, the Internet and E commerce have made the world a much smaller place; they have greatly diminished the importance of national boundaries; and they have transformed the ways people work, do business, and cinsume. The Internet and E commerce have challenged traditional ways of doing things. The rapid rise in B2B and B2C transactions also threatens traditional brick and mortar businesses where the fear is that sales will decline just as E commerce expends.
The purpose of this paper is to briefly explain the major tax issues raised by E commerce. It suggests that the extent of the threat to traditional taxing systems should not be overstated although E commerce is a new and powerful form of doing business. Taxation of E commerce does create some new problems for tax administrations, but the problems are more evolutionary than revolutionary. Where E commerce is most troublesome of the goods and services - where the entire transactions are conducted electronically and the results are delivered to the consumers in digital form. The sales of information or software in digital form with electronic payment, for example, represent the greatest challenges for existing tax systems. But because many goods and services cannot be completely digitalized, the parts of E commerce that cause the greatest threats to existing tax systems are fairly limited and are likely to remain so in the future.

목차 (Table of Contents)

• Ⅰ. Introduction
• Ⅱ. A Brief Examination of Major Tax Issue Raised by E Commerce
• 1. Fragmentation of Production Processes and Allocation of Income among Competing Jurisdictions
• 2. The Absence of a Physical Presence in the Source Country for Income Tax Purposes
• 3. Nexus for Consumption Tax Purposes
• 4. Eliminating Tax Distortions in Production Processes
• 5. Introducing Nex Taxes on E Commerce
• Ⅲ. Conclusion