These estimates are based on worldwide sales of Internet-related products and services by U. If a recent study by the Washington State Department of Revenue is any indication of things to come, small businesses would be hit hardest with respect to the costs of compliance with multi-jurisdiction tax rates.
Media Resources Our Media Resources library provides one-stop collections of materials on numerous issues in which the FTC has been actively engaged. Fears regarding potential market segmentation are therefore a notable concern within a number of agencies which have examined the issue of competition within the e-commerce sector.
The economic consequences of government actions in e-commerce will be profound and serious. Electronic commerce permits a foreign person to engage in multiple business transactions with customers in the United States without ever having entered the country.
Orson SwindleFormer Commissioner It is a pleasure to be with you this morning.
Income Taxes It is a matter of fact that government generates revenue via taxation of all economic activity conducted within it. If it keeps moving, regulate it. How would the taxes be collected?
These queries posit obvious answers that where the above conditions do not exist; the only logical conclusion is that gains from such transaction are a loss to the government tax-wise. Conclusion E-commerce is an industry patronized by different classes of business because of its wide coverage and the latent revenue inherent in it.
Relevant conclusions from the report include: The answer to that question will have an enormous impact on economic growth -- the creation of wealth, jobs and prosperity -- throughout our country and the world.
As in the case of Companies Income Tax, the Value Added Tax Act provides for the registration of a taxable person within six months of the commencement of business .
The increasing number of business transactions that are consummated over digital platforms show that this is the way of the short to medium term future of business interactions. Any missteps will injure our country gravely, and diminish our position as the leading world economy.
The non-resident has no fixed place of business; Has no agency relationship with any person; and The objects of the business do not conform with the relevant income tax legislations. There is thus an avalanche of approaches that Nigeria can leverage to capture its share of tax revenue from the digital economy.
The same interpretation section also provides for the definition of supply of services to include any service provided for a consideration. The Act further provides that the value of imported taxable goods shall be equal to its price which is inclusive of all taxes as well as other charges levied outside Nigeria and all costs by way of commission and other related costs up to the place of importation must be equal to the price .
Section 8 of the Value Added Tax Act . The Internet is inherently susceptible to multiple and discriminatory taxation in a way that commerce conducted in more traditional ways is not. It is important to move forward to ensure that the default position is not to lift the moratorium on Internet taxation, but to place the burden of proof on those advocating taxation of e-commerce.In a digital environment, the Internet's growth and e-commerce begins to create fundamental change to government, societies, and economies with social, economic and political implications (McGarvey, ).
Tomorrow's tax policy will have an enormous impact in shaping the future of this burgeoning new industry of electronic commerce supported by the Internet. The Complications of Taxing Internet Commerce. The issue of taxing the Internet is complicated by several factors: a.
Taxation Of Electronic Commerce: Prospects And Challenges For Nigeria Page | 11 In Nigeria, e-commerce presents enormous challenges to the tax regime, which focuses on territorial and personal bases of tax jurisdiction. The Nigeria National Tax Policy (NTP) sets as one of the main objectives, the elimination of bottlenecks and leakages in Nigeria’s tax system.
Thus, it imposes a duty on the tax authorities (state, federal and local) to identify all such avenues for leakages in the Nigeria. Nigeria Considers The Implications of E-commerce on its Tax System The efficacy of the Nigerian tax system in dealing with the challenges of e-commerce was the focal point of a recent conference organized by the Chartered Institute of Taxation of Nigeria (CITN).
The theme of the conference was “Taxation Within the Context of Globalization”. The issue of e-commerce and its tax implications continues to receive a high level of attention because of the fast growth of e-commerce activities. In the emerging global economy, e-commerce has increasingly become a necessary component of business strategy and a.Download