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:
“It was you that broke the new wood,
Now is a time for carving.
We have one sap and one root—
Let there be commerce between us.”
—Ezra Pound (1885–1972)
“The arrogance of race prejudice is an arrogance which defies what is scientifically known of human races.”
—Ruth Benedict (1887–1948)
“The developments in the North were those loosely embraced in the term modernization and included urbanization, industrialization, and mechanization. While those changes went forward apace, the antebellum South changed comparatively little, clinging to its rural, agricultural, labor-intensive economy and its traditional folk culture.”
—C. Vann Woodward (b. 1908)
“People buy their necessities in shops and have to pay dearly for them because they have to assist in paying for what is also on sale there but only rarely finds purchasers: the luxury and amusement goods. So it is that luxury continually imposes a tax on the simple people who have to do without it.”
—Friedrich Nietzsche (1844–1900)