Internet Law
Books
|
Internet Patents Worldwide
|
|
Internet Advertising Law
|
|
Digital Media: Copyrights and Piracy
|
|
Domain Name Law & Disputes
|
|
Can You Patent This?
|
|
E-Commerce Taxation: The U.S. Approach
|
|
Why E-Businesses Move Offshore
|
|
Gambling: Online and Offshore
|
|
Online Gambling: Profits & Concerns
|
|
Offshore E-commerce Taxation
|
|
Internet Search - Public Domain v. Intellectual Property Rights
|
|
Emerging Trends: Search Engine Regulations
|
|
How Tax Authorities Audit E-Businesses
|
|
|
 |
|
|
New! The first book in Internet law series in partnership with Oxford University Press (Click here).
E-Books Series is a concentration of the most relevant information on e-commerce and Internet laws and regulations around the world.
Conveniently divided in sections consisting of articles on specific topics, supplemented with links to the sources of law and regulations, e-Books provide an excellent and quick resource of knowledge on Internet and e-commerce issues and applicable principles of law. Electronically accessed supplemental materials are provided to enhance a dynamic informative process.
E-Book Series is a part of E-Commerce University ECUniversity.com
pioneering scholastic programs that also include Internet law courses for law and business schools, Internet Law Diploma Programs, and Corporate education for businesses.
E-Books are conveniently accessible online or through a downloadable version. A pocket size version of eBooks is also available.
IBLS e-Book Series reserves all intellectual property rights. Any re-distribution of this material without appropriate license will be prohibited.
E-Books are distributed and copyrighted by E-commerce University.
For license inquiries write to e-books@ibls.com
|
|
|
| | 
Buy Now
 | | | | How Tax Authorities Audit E-Businesses | | | | | |
| | | Introduction | | | Chapter 1: United States Internal Revenue Service –IRS- Auditing Authority | | | Chapter 2: European Union and Canada Government Auditing Authority | | | Chapter 3: Electronic Tax filing | | | Supplemental Documents | | | | | |
Abstract:
E-commerce is reporting huge sales worldwide. According to the United States Census Bureau ("USCB"), e-commerce sales in the U.S. for the year 2006 were estimated at $108.7 billion; an increase of 23.5% from US e-commerce sales in 2005. European Union ("EU") Western countries had 97 billion on estimated e-commerce sales for the year 2006. This figure shows an increase on e-commerce retail sales of 37% over those reported in 2005.
On the issue of e-commerce taxation these figures speak by themselves. E-commerce may represent huge domestic revenue for any government. But, how are governments implementing auditing methods for e-businesses and how are they assessing deductions and costs reported by e-businesses?
How is the Internal Revenue Service- IRS- allowing tax deductions for website development? What compliance rules the IRS has implemented for e-businesses? What is the IRS concern when an e-business reports its income? What are the IRS' electronic record keeping requirements? What are the IRS proposed rules on cost sharing arrangements?
How e-businesses report their taxes in the European Union and what is the taxing authority those businesses should report to? How does an e-Business report its income in the EU? How the EU is auditing e-businesses? What are the record keeping and invoice rules for e-businesses in the EU? And what measures has the EU taken to avoid VAT fraud and VAT evasion?
This e-Book addresses the above questions and, additionally, it illustrates on how electronic tax filing are being conducted in United States, European Union and Canada. | | |
| | | | CHAPTER 1: United States Internal Revenue Service –IRS- Auditing Authority |
| | |  | THE TAXATION OF E-COMMERCE TRANSACTIONS
Most e-commerce transactions fit comfortably within established rules and regulations concerning taxation, however, there are areas of uncertainty, where there is a lack of established law.
More... |
BACK TO TOP | | E-COMMERCE TAX ADMINISTRATION AND COMPLIANCE ISSUES
Electronic commerce creates new variations on old issues as well as new categories of issues in tax administration and compliance. Thus, it requires the development of practical techniques to deal with the resulting technological innovations. Developments touch on a wide range of issues affecting the administration of tax laws.
More... |
BACK TO TOP | | ELECTRONIC RECORD-KEEPING REQUIREMENTS: STATUTORY PROVISIONS
The United States requires e-commerce sellers to store their business records electronically. To have confidence in the processes and methodology used to store records electronically, the Internal Revenue Service promulgates acceptable standards of electronic record keeping for tax purposes.
More... |
BACK TO TOP | | STANDARDS FOR WEBSITE VALUATION
The rapid development of e-commerce in the last decade has created challenges for the U.S. tax system. Inspection of the taxpayer’s website is every bit as important as the inspection of the place of business. Since cyberspace has no boundaries, the physical presence of a company is not required in any particular state. The auditing technique for the tangible goods is different from the intangible goods such as website or computer software. Therefore, the Internal Revenue Service has issued Business Valuation Guidelines for the valuation of intangible products.
More... |
BACK TO TOP | | PROPOSED IRS REGULATIONS AND COST-SHARING ARRANGEMENTS
A “Cost-Sharing Arrangement” (CSA) is a method of sharing the costs and risks of the development of intangibles. Each participant in the CSA must bear its share of cost and risk and in return will own whatever results from the arrangement. New regulations of cost-sharing arrangements under section 482 of the Internal Revenue Service (IRS) Tax Code provide for the treatment of cost-sharing arrangements between controlled participants to share the costs and risks of intangible development in proportion.
More... |
BACK TO TOP | | E-COMMERCE TAX REPORTING: CONCERNS AND PROPOSED SOLUTIONS
While e-commerce transactions are growing at a rapid pace, the Internal Revenue Service is facing the challenge of adapting existing tax systems to the United States economy. This is a challenge because the nature of E-commerce raises administrative concerns for the Internal Revenue Service as to whether transactions are properly reported, whether an audit path exists, and whether new reporting rules are needed.
More... |
BACK TO TOP | | VALUATION OF WEBSITES FOR TAX PURPOSES
As websites generate revenue, they must be taxed accordingly. The rate of taxation is based on the valuation of the website. There is no precise method to valuate a website. However, there are some models which are of great help in reaching an estimated valuation.
More... |
BACK TO TOP | | THE AUDITING OF E-COMMERCE BUSINESSES
While the threat of an Internal Revenue Service audit is daunting, the IRS audits less than two percent of submitted tax returns. Therefore, the chances of an IRS audit are small unless attention is drawn as a result of mistakes. The IRS has computer software that separates suspects from legal filers.
More... |
BACK TO TOP |
| | |
| | | | CHAPTER 2: European Union and Canada Government Auditing Authority |
| | | | THE AUDITING OF E-COMMERCE TRANSACTIONS AT THE EUROPEAN UNION
The EU levies VAT, and as the taxing authority it bears responsibility for auditing. It issues directives and establishes institutions for taxing and auditing e-commerce transactions involving companies as well as individual consumers and merchants. It has established audit standards so that an audit trail is maintained, and transactions can be traced.
More... |
BACK TO TOP | | REPORTING E-COMMERCE TAX TO THE EUROPEAN UNION
The European Union has issued various directives dealing with the legal aspects of the growing electronic trade in the European market.
More... |
BACK TO TOP | | EU TAX-REPORTING OBLIGATIONS
Regarding the administration of sales tax, including VAT (Value Added Tax), governments rely on the reporting and collection of tax by the merchants doing businesses through e-commerce. The rate of tax to be charged on the value of a transaction is the standard rate of VAT applicable in the member state in which the customer is residing. The rate of tax varies from state to state.
More... |
BACK TO TOP | | EU REGULATIONS FOR E-INVOICING
To achieve basic standards of clarity and certainty in a taxation system, the incidence of taxation must be well defined. The tracking of indirect taxes such as VAT relies on invoices as the primary evidence of a commercial transaction. When business evolves by means of advance technologies, documentary evidence such as invoices must match these advances. The European Union has recognized the importance of e-invoicing for e-commerce.
More... |
BACK TO TOP | | EDI AGREEMENTS
The benefits of electronic commerce are widely accepted. Electronic Data Interchange (EDI) in particular has evoked considerable interest in recent years. To enjoy the benefits of EDI, transaction partners must first have an interchange agreement.
More... |
BACK TO TOP | | THE LEGAL SIGNIFICANCE OF ELECTRONIC SIGNATURES IN THE EU
All European countries have implemented the EU’s Electronic Signature Directive 1999/93/EC to a greater or lesser extent, with or without restrictions, by investing electronic signatures with clear functions that are for the most part laid down in the definition of the electronic signatures in various member states’ laws.
More... |
BACK TO TOP | | EUROPEAN UNION RECORD-KEEPING REQUIREMENTS
Parties liable for collecting and remitting tax must maintain proper accounting records, imperative for determining correct tax liability. The Organization for Economic Co-operation and Development’s (OECD) Forum on Tax Administration continues to offer guidance for proper and reliable record keeping. The European Union (EU) has also emphasized the importance of record keeping. Though the EU generally follows the guidelines set by OECD, member states are free to follow some of their own record-keeping guidelines.
More... |
BACK TO TOP | | EU MEASURES TO FIGHT TAX FRAUD
As e-commerce grows, tax evasion also increases. Tax evasion violates the principle of fair taxation and leads to heavy tax revenue losses. In the EU, tax evasion by suppliers affects the operation of the internal market. To fight tax fraud, close cooperation between tax authorities in member states is essential. The EU has issued regulation to improve this cooperation.
More... |
BACK TO TOP | | ELECTRONIC RECORD-KEEPING IN CANADA
The obligations of Canadian taxpayers regarding the retention and protection of books are the same for businesses conducted over the Internet as for any other business process. Additionally, the Canada Revenue Agency (CRA), also known as Revenue Canada, has recognized certain requirements regarding electronic record-keeping, which are applicable to those doing business over the Internet.
More... |
BACK TO TOP |
| | |
| | | | CHAPTER 3: Electronic Tax filing |
| | | | ELECTRONIC TAX FILING
The use of electronic tax filing is increasing. Due to advances in Internet security and the protection of confidential information, consumers feel more comfortable filing their taxes online. The practice is also very convenient.
More... |
BACK TO TOP | | ELECTRONIC TAX FILING AT THE EUROPEAN UNION
Traditionally, tax returns were filed using paper forms. With the increasing number of taxpayers and complexities arising in taxation, it has become impossible to maintain records on paper. The current preference is for electronic means of record keeping and tax filing. In this day of Internet and E-commerce, every state stresses E-filing of tax. An E-filing system permits the filing of almost all taxes through a web portal.
More... |
BACK TO TOP | | ELECTRONIC TAX FILING: THE FASTEST AND MOST CONVENIENT WAY TO FILE U.S. TAX RETURNS
The term E-commerce is not just limited to business transactions through the Internet. It also extends to electronic tax filing. The Internal Revenue Service (IRS) now engages in the practice of filing tax returns electronically (also known as e-filing) for individuals as well as corporations. Today more and more people are filing their tax returns electronically without sending any paper to the IRS. E-filing has proven to be the most convenient and time-saving way of filing tax returns.
More... |
BACK TO TOP | | ELECTRONIC TAX FILING IN CANADA
The Internet has not only changed the way of doing the business, but it has also modified the process of filing tax returns. E-filing or Electronic tax filing is the fastest and most convenient way of submitting forms over the Internet. The Canada Revenue Agency (CRA) is responsible for the collection of taxes and for the administration of tax laws at the federal, provincial and territorial levels. The CRA has introduced three types of e-filing for individuals in Canada. These systems are popularly known EFILE, TELEFILE, and NETFILE.
More... |
BACK TO TOP | | ELECTRONIC, TAX-FILING SOLUTIONS FOR CANADIAN BUSINESSES
The Internet has touched on almost all aspects of business. The Internet has made tax filing easy and more accurate. The filing of tax returns no longer must remain on paper. The Canadian Revenue Agency (CRA) has introduced a variety of secure and automated electronic, filing solutions for businesses. To file tax returns electronically over the Internet, an employer can choose from three electronic filing options, namely T4 Web forms, T4 and T1204 desktop applications, or Internet file transfer (XML).
More... |
BACK TO TOP |
| | |
| | |
| | | | U.S. Government Launches New Business.gov Website to Help Businesses Meet Federal Compliance
The U.S. Small Business Administration in partnership with twenty-one other federal agencies has recently launched a one-stop resource to provide business with all the compliance information that they need. This partnership, known as Business gateway, forms part of the Presidential e-government initiative to utilize technology to improve how the federal government services citizens and businesses.
More... |
BACK TO TOP | | Israeli Court Holds that a DNS Definition may be Retained as Security for Payment of Debts
The Israeli Magistrates Court of Tiberias held on December 17, 2006 that DNS (Domain Name Server) definition is an asset which may be retained by a creditor as means to persuade a debtor to pay its debt. The Court stated that even if seemingly intangible, the DNS requires physical maintenance work and therefore can be said to be “physically held” and thus capable of being retained as security for ensuring payment.
More... |
BACK TO TOP | | The Italian certified e-mail system
E-mail has become the communication method par excellence. Correspondingly, the need for legal protection has started to press urgently during the last years. Trade operators, public administrations as well private citizens have experienced the increasing necessity, on the one hand, to intensify their electronic communications, and on the other hand, to be assured that the communication effectively took place. Prior to February 2005, however, the traditional (paper) registered letter represented the only method which proved mail delivery to the actual addressee.
More... |
BACK TO TOP | | Transfer Pricing in Germany
German legislation on transfer pricing ("TP") establishes the principle of arm's-length pricing for related-party transactions. Foreign owned subsidiaries are intensely audited by German officials with respect to TP. Additionally, domestic multinationals currently face enhanced inspection from the German tax authority due to an exemption system which provides increased incentives to shift profits abroad. Notably, there is no statute of limitations for TP adjustments in Germany.
In accordance with OECD TP Guidelines, the German tax authority aims to prevent disagreements between tax authorities on TP methods and the resulting double taxation through advanced pricing agreement (“APA’s”).
More... |
BACK TO TOP | | How Tax Authorities Audit E-businesses?
Let's talk e-commerce numbers. According to the United States Census Bureau ("USCB”), e-commerce sales in the U.S. for the year 2006 were estimated at $108.7 billion; an increase of 23.5% from US e-commerce sales in 2005. Just during the last quarter of 2006, e-commerce retail sales were calculated at $990.835 millions. The USCB"s comparison chart on e-commerce sales for the last quarter of each year beginning on 1999 and ending on 2006 shows a steady and rapidly increase on e-commerce sales in the U.S.
More... |
BACK TO TOP |
|
|
|
|
|
