Taxation of Electronic Commerce - Are the Current Rules Appropriate to Tax Electronic Commerce?
Taxation of Electronic Commerce - Are the Current Rules Appropriate to Tax Electronic Commerce?

Summary/Abstract: In my article I make an attempt to represent the changes brought by the Internet, which are the greatest economic developments of the 20th century in our business life and also the challenges caused to tax authorities. I would like to give an insight, in the first part, into electronic commerce and e-retailing. In the second part I evaluate tax problems and the world’s response to them. From my point of view, a good article gives a wider picture of relevant issues and tries to put them in context. It does not only examine a problem by itself as when we give advice to a client as legal experts; we also need to take different factors into account. As it was stated in the case of Hurlingham Estate v Wilde and Partner, in which the judge said that no business decision should ever be taken into account without considering its fiscal consequences, and no professional adviser should offer advice without addressing the fiscal side of the case. Legal advisors need to make sure their clients are informed and have reasoned information about the fiscal consequences of their problem.1 The new form of retailing brought quite a few problems that I would like to elaborate on here, but we need to bear in mind that each of them by itself would deserve a whole article.

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