<html><head><meta http-equiv="content-type" content="text/html; charset=utf-8"></head><body dir="auto"><div>The Internet is an entirely different entity from a corporation that is selling services to the general public. As for picking jurisdictions where tax works better for them, even amazon realigned their distribution strategy to avoid too many US state taxes.</div><div><br></div><div>Do remember, in the words of former US Supreme Court justice Learned Hand. Tax avoidance is not a crime, tax evasion is.<br><br>--srs (iPad)</div><div><br>On 07-Dec-2012, at 0:20, "Salanieta T. Tamanikaiwaimaro" <<a href="mailto:salanieta.tamanikaiwaimaro@gmail.com">salanieta.tamanikaiwaimaro@gmail.com</a>> wrote:<br><br></div><blockquote type="cite"><div><br><br><div class="gmail_quote">On Tue, Dec 4, 2012 at 12:39 AM, Suresh Ramasubramanian <span dir="ltr"><<a href="mailto:suresh@hserus.net" target="_blank">suresh@hserus.net</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<span style="font-family:Arial">Of course the tax dispute is not with the telecom regulators of those countries and would continue regardless of the outcome in the WCIT, so you will forgive me if I don't quite get the connection <br>
<br>--srs (htc one x)</span></blockquote><div><br></div><div>A few thoughts from me: </div><div><br></div><div style="color:rgb(34,34,34);font-family:arial,sans-serif;font-size:13px;background-color:rgb(255,255,255)"><div>
Well it not new that the US has always maintained that the Internet should be a tax free zone as per the US Congress's Tax Freedom Act 1998 (<i>authored by </i><span style="line-height:16px"><i>Representative Christopher Cox and Senator Ron Wyden and signed into law on October 21 1998 by then President Clinton</i>) </span>which following expiry continued to be reauthorised and it most recent reauthorisation (legal speak for extension) was in October 2007 where this has been extended till 2014.</div>
<div><br></div><div>The OECD and the EU have been holding the opposite view (Kurbaliha,J. 2010) - see their Ottawa Principles where they find that there is no difference between traditional and e taxation that would require special regulations.</div>
<div><br></div><div> It followed that in 2003 when the EU introduced a regulation requesting non EU e commerce companies to pay value added tax (VAT) if they sold goods within the EU. The main driver or motivation was that non-EU companies (many of whom are US companies) had an edge over European companies. See one of the Reports - <a href="http://www.oecd.org/tax/taxadministration/20499630.pdf" target="_blank" style="color:rgb(17,85,204)">http://www.oecd.org/tax/taxadministration/20499630.pdf</a></div>
<div><br></div><div>The point of controversy is also location (US is pro-origin) and destination (EU is pro-destination) when assessing tarriffs so when take for example as is with Trade. </div><div><br></div><div>This is why MNCs (multinational corporations) are careful and selective of jurisdictions in which they plonk their servers in or offices in because it has to make sense to the bottom line. In my view nothing wrong with the bottom line as long as people behave responsibly and fairly so that global public interest is protected. The only problem is that history and current trends show that the self regulatory model does'nt work (see some of the links that Michael provided). [question for us is finding that place of balance where we can all win].</div>
<div><br></div><div>Why is South Korea so important in the mix? Well aside from the Samsung v Apple and Apple v Samsung circus, South Korea also leads the world in terms of being number 1 in the IDI ranking but if you peel the layers, volume and content are massive triggers as far as generating revenue. Ask any ISP or MNC...If taxation were introduced globally, the apple cart would be upset. Of course, at the end of the day, the reality is that the EU is in financial crisis and it should not come as a shock as to what their position will be in terms of "enhancing stability". The fact that even the IMF is struggling to find viable solutions shows that hourglass is in motion. </div>
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