[governance] The noose is closing on global Internet and other enabled tax dodging

[Roland Perry]

In message <20130524160940.6caf4032 at quill.bollow.ch>, at 16:09:40 on 
Fri, 24 May 2013, Norbert Bollow <nb at bollow.ch> writes
>Now e-commerce is an important aspect of the use of the Internet, and
>any tax treaty that impacts on e-commerce, even if only by resulting
>in some requirements to demonstrate in some cases that the e-commerce is
>“real” in some sense and not a front for tax evasion, will have some
>influence on shaping the evolution and use of the Internet.

E-commerce allows both tax avoidance and tax evasion.

Tax avoidance happens because we are enabled to buy things, sat in out 
armchairs by the fire, from different jurisdictions that often have 
lower [sales] tax rates than at home. It can even take advantage of 
exceptions placed on import duty for postal items, by customs having a 
"floor limit" below which they can't be bothered to assess the tax due.

Tax avoidance by corporations, when choosing to locate their offices in 
lower-tax jurisdictions, is easier when e-commerce is involved, but has 
a long and distinguished history for bricks-and-mortar companies.

Both of these effects, however, take place in the full glare of 
publicity, even if they are becoming less "politically correct" in 
recent times - partly because of the exposure gained due to the better 
flow of information on the Internet.

Tax evasion is another matter altogether, and involves failing to 
declare transactions, or mis-declaring them. There's a subset of items 
bought online (specifically downloads of software and entertainment) 
which are more susceptible to evasion, but I'd characterise that as more 
to do with the products than the medium through which they are invoiced.
-- 
Roland Perry

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