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Ecommerce to tax the world

Ecommerce to tax the world

Clayton Utz partner Niv Tadmore says that the increasing flow of business done on the Internet at both personal and corporate levels is threatening the international balance of regulated…

Clayton Utz partner Niv Tadmore says that the increasing flow of business done on the Internet at both personal and corporate levels is threatening the international balance of regulated cross-border revenue collection for many countries.

Tadmore spoke at a recent conference, The Source of Income in a Globalised Economy: Developing Source Rules for the 21st Century, in Stockholm, Sweden.

He explained that, historically, governments have managed the revenue collection issues associated with international trade, such as who is taxed and whether it is taxed at the source or at the buyer end, through international tax treaties.

“However, in cyberspace the generally accepted jurisdictional frameworks are in flux and one of the uncertainties is where a product should be taxed within the ecommerce chain,” Tadmore said.

“Given that the processes of international tax reform and co-operation are very slow and that the evolution of electronic commerce is very fast, international tax reform is likely to be far behind the game.”

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Ecommerce to tax the world
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