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:
“I leave you, home,
when I’m ripped from the doorstep
by commerce or fate. Then I submit
to the awful subway of the world....”
—Anne Sexton (1928–1974)
“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 (1880–1936)
“I conceive that the leading characteristic of the nineteenth century has been the rapid growth of the scientific spirit, the consequent application of scientific methods of investigation to all the problems with which the human mind is occupied, and the correlative rejection of traditional beliefs which have proved their incompetence to bear such investigation.”
—Thomas Henry Huxley (1825–95)
“If you tax too high, the revenue will yield nothing.”
—Ralph Waldo Emerson (1803–1882)