Commerce Defies Traditional Tax Jurisdictions
Using the internet, a company can, in theory, move its e-commerce business to a “tax haven” country and conduct e-commerce outside the jurisdiction of any country that would otherwise tax the transaction.
Also, because of the speed in which transactions occur and the frequent absence of a traditional paper trail, it will be very difficult, if not impossible, to apply traditional notions of tax jurisdiction. This is especially true with intangible property transmitted by computer such as software, digital music or electronic books and services.
When using offshore proxies through an encrypted connection, the online activity is submitted to the laws of the jurisdiction of the proxy usie. This is equivalent to offshoring at the press of a button.
Read more about this topic: Second-level ISP
Famous quotes containing the words commerce, defies, traditional and/or tax:
“On 16 September 1985, when the Commerce Department announced that the United States had become a debtor nation, the American Empire died.”
—Gore Vidal (b. 1925)
“It is the Late city that first defies the land, contradicts Nature in the lines of its silhouette, denies all Nature. It wants to be something different from and higher than Nature. These high-pitched gables, these Baroque cupolas, spires, and pinnacles, neither are, nor desire to be, related with anything in Nature. And then begins the gigantic megalopolis, the city-as-world, which suffers nothing beside itself and sets about annihilating the country picture.”
—Oswald Spengler (18801936)
“In abnormal times like our own, when institutions are changing rapidly in several directions at once and the traditional framework of society has broken down, it becomes more and more difficult to measure any type of behavior against any other.”
—John Dos Passos (18961970)
“I find nothing healthful or exalting in the smooth conventions of society. I do not like the close air of saloons. I begin to suspect myself to be a prisoner, though treated with all this courtesy and luxury. I pay a destructive tax in my conformity.”
—Ralph Waldo Emerson (18031882)