ITX 666 Global E-commerce Taxation
Module (Week) 2 Assignment
Benjamin M Musau, Lawyer, Nairobi, Kenya
Please discuss:
How would jurisdiction integration impact E-Commerce Taxation?
Answer:
There are approximately 30,000 separate taxing jurisdictions in the United States, thus presenting the potential for an enormous variety of taxes and tax rates on Internet activity. The unique character of the Internet transcends physical and political boundaries and permits commercial and intellectual communications to move from city to city, State to State, and nation to nation without any set path in a manner that is virtually unparalleled in history.
Even within the United States, the Internet does not respect State lines and operates independently of State boundaries. Addresses on the Internet are designed to be geographically indifferent. Internet transmissions are insensitive to physical distance and can have multiple geographical addresses. The twenty-first century marketplace requires a twenty-first century sales tax system that is more uniform, consistent, and streamlined.
Integration of jurisdiction will not only make businesses more competitive, but it will also make government more efficient, resulting in personal benefits to every consumer and citizen.
Commerce on the Internet could total tens of billions of dollars by the turn of the century. For this potential to be realized fully, governments must adopt a non-regulatory, market -oriented approach to electronic commerce, one that facilitates the emergence of a transparent and predictable legal environment to support global business and commerce. Official decision makers must respect the unique nature of the medium and recognize that widespread competition and increased consumer choice should be the defining features of the new digital marketplace.
Jurisdiction integration will make the tax systems to be clear, transparent and predictable, which are precursor conditions for the growth of electronic commerce.
Other references:
Annette Nellen, CPA, Esq., College of Business, San Jose State University, Overview to E-Commerce Taxation – Guide to Understanding the Current Discussions and Debates, July 2003. http://www.cob.sjsu.edu/facstaff/nellen_a/. Retrieved on April 13, 2011.
Benjamin M Musau
April 13, 2011
I am a Kenyan Advocate and the Managing Partner of B M Musau & Co., Advocates, a position I have held since 1999. My work encompasses regulatory reforms, reduction of administrative burdens, the structure of business entities, joint ventures, acquisitions, banking, foreign investment and other general corporate areas
Write a comment: