Internet Law
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Internet Patents Worldwide
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Internet Advertising Law
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Digital Media: Copyrights and Piracy
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Domain Name Law & Disputes
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Can You Patent This?
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E-Commerce Taxation: The U.S. Approach
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Why E-Businesses Move Offshore
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Gambling: Online and Offshore
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Online Gambling: Profits & Concerns
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Offshore E-commerce Taxation
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Internet Search - Public Domain v. Intellectual Property Rights
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Emerging Trends: Search Engine Regulations
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How Tax Authorities Audit E-Businesses
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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.
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 | | | | The United States Approach to E-commerce Taxation | | | | | |
| | | Introduction | | | Chapter 1: Introduction- Characterization of E-commerce Income in the United States | | | Chapter 2: Tax Implications of E-commerce and the United States Internet Tax Freedom Act | | | Chapter 3: The Streamlined Sales and Use Tax Agreement | | | Chapter 4: State and Local Policies for E-commerce Taxation | | | Chapter 5: A Specific Case: Online Sales of Cigarettes and Tabacco Products | | | Supplemental Documents | | | | | |
E-commerce raises challenges to the governments' characterization of its income due to its delivery methods and jurisdiction issues involved. The Organization for Economic Co-operation and Development -OECD- has provided guidelines as to how governments should consider income from e-commerce transaction for tax purposes. The United States and the European Union have taken different approaches on this topic. This e-Book"s objective is to offer an overview of the United States approach to e-commerce taxation.
This e-Book addresses the tax implications of e-commerce, the major issues raised for this new market practice, and its jurisdiction debate. The United States Internet Tax Freedom Act is presented as example of the US policy on e-commerce and its dichotomy on whether this Act is protectionist or discriminatory.
A special section in this e-Book is dedicated to the analysis of the US Streamlined Sales and Use Tax Agreement and the concept of nexus under this agreement. Then, this e-Book addresses the state and local policies for e-commerce taxation and the state concerns on this topic. Lastly, reader will know how the online sales of tobacco and cigarettes have been taxed in the United States and provides three specific state approaches to this theme; the case of Alabama, Arizona and Texas.
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| | | | CHAPTER 1: Introduction- Characterization of E-commerce Income in the United States |
| | |  | CHARACTERIZATION OF E-COMMERCE INCOME IN THE UNITED STATES
The characterization of income is a key taxation element because it determines how income is sourced and taxed. The characterization of e-commerce income is complex because e-commerce allows for an increasing number of goods and services to be delivered online. Due to digitization, it is more difficult to determine whether income represents sales income, or services income, or whether an intangible product has been licensed, thereby giving rise to royalty income. The United States Internal Revenue Service (“IRS”) has issued regulations that contain detailed rules regarding the characterization of transactions involving software. However, the application of Subpart F of the U.S. Internal Revenue Code of 1986 to e-commerce for the characterization of income raises several questions.
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| | | | CHAPTER 2: Tax Implications of E-commerce and the United States Internet Tax Freedom Act |
| | | | KEY REASONS THAT E-COMMERCE RAISES TAX ISSUES
E-Commerce creates new challenges to the tax systems. One of the challenges derives from the fact that a business can engage in e-commerce without having a physical presence; and therefore, they may escape fiscal scrutiny. This is way beyond what was imagined during the formative states of present tax laws. Other tax concerns created by e-commerce are the possibility of e-commerce facilitating tax avoidance and lose of revenue for local authorities. For instance, e-commerce can generate opportunities for legitimate tax planning so that businesses can reduce their tax payments in some, most or all the countries in which they operate; consequentially, this creates lose of revenue for local governments. Additionally, e-commerce may also provide an opportunity for offshore transactions to generate unreported income for U.S. citizens. A final example of the tax issues raised by e-commerce is the possibility that businesses face risks in the tax treatment of their methods and structures.
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BACK TO TOP | | TAX IMPLICATIONS FOR ELECTRONIC COMMERCE
Taxation implications of electronic commerce have been an ongoing concern since this new way of doing business emerged. The U.S. Internet Tax Non Discrimination Act has been repeatedly extended. Due to these extensions, e-commerce buyers may not have to pay taxes for online purchases, except local sale taxes that some jurisdictions still impose on online sales despite the precepts of this Act. After many years of Internet commerce, there are still discrepancies as to whether online sales should be taxed. Some U.S. states are currently imposing sales taxes on online purchases. Other states are still exempting online sales from sales taxes. E-commerce entrepreneurs must check the taxation policy of each of those jurisdictions with which they are dealing online because even though they may not be liable for sale tax payments in their own jurisdiction, they might incur sale tax liability in some other jurisdictions where their buyers are located.
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BACK TO TOP | | JURISDICTION ISSUES OF E-COMMERCE TAXATION
The Internet Tax Freedom Act ("ITFA"), pointed out some problems that e-commerce vendors face, such as taxation of the same transaction by multiple jurisdictions. Internet Tax Freedom Act, Pub. L. No. 105-277, Div. C, Title XI, 1104(6)(a), 112 Stat. 2681, 2681-719 (1998), as amended, addresses the issue of double taxation in e-commerce transactions and advice state fiscal authorities to delay taxation of online sales in their jurisdictions. Yet, the federal government allows the states and their various localities to control taxation within their jurisdictions. This system may create difficulties when the levying jurisdiction tries to tax a sales transaction in a jurisdiction where the buyer resides but the seller does not; this may result in multiple jurisdictions taxing the same transaction. As such, tax experts advocate for uniform, equitable and neutral tax policies for all transactions, regardless of the medium.
See "BUSINESS LAW A, ELECTRONIC COMMERCE 2, TAXATION a) FEDERAL LEGISLATION:Federal Legislation Regarding Taxation of Internet Sales Transactions", 16 Berkeley Tech. L.J. 415, 2001 by Christopher J. Schafer.
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BACK TO TOP | | INTERNET TAX FREEDOM: PROTECTION OF DISCRIMINATORY TAXATION OR SUBSIDY?
The U.S. congress extended the Internet Tax Freedom Act (“ITFA”) by amending it with the Internet Tax Non-Discrimination Act. Currently, the ITFA was extended until 2011. An interesting question emerges: Is ITFA a Non-Discrimination Act or is it something else?
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BACK TO TOP | | THE UNITED STATES INTERNET TAX FREEDOM ACT
The Internet Tax Freedom Act (ITFA) of 1998 introduced a tax moratorium that banned Internet access taxes and new and discriminatory taxes on the Internet. The moratorium was originally set for seven years. In 2005, the ITFA was extended until November 1, 2007. On 2007, the ITFA was extended for four additional years. In 2005, the House approved the Internet Tax Nondiscrimination Act, which would permanently extend the moratorium for telecommunication services. Yet, this bill was not approved despite the efforts from the telecommunication industry.
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BACK TO TOP | | UNITED STATES E-COMMERCE TAXATION SYSTEM AUGMENTS UNFAIR COMPETITION IS AN ORIGIN-BASED TAX SYSTEM A SOLUTION?
E-commerce has created various challenges to the present United States (U.S.) tax system. Hence, after many years of e-commerce evolution and lots of discussions and positions on how to tax e-commerce transactions, the controversy over Internet taxes has centered on use taxes rather than sale taxes. Somehow, U.S. states have adopted their own policies on sale taxes for online transactions and the community is getting educated on what jurisdictions tax online sales. Use taxes are owed by customers to the states where they reside on purchases from out-of-state sellers. States are free to levy use taxes on their own citizens. The question is whether they may impose the obligation to calculate, collect, and remit those taxes on remote sellers.
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| | | | CHAPTER 3: The Streamlined Sales and Use Tax Agreement |
| | | | STREAMLINED SALES TAX PROJECT
Taxation of online transactions is an issue often addressed and yet it has not been resolved in a homogeneous and statutory manner. Online retailers doing business in a mixture of U.S. jurisdictions have to hire a tax attorney able to provide some guidance as to what jurisdictions will subject them to sales or use taxes and what others will provide a tax free environment for their transactions. A carful tax analysis of this nature is the only mode to avoid liability for unpaid taxes and sanctions. Even though the federal government extended the Tax moratorium exemption for Internet transactions until 2011, state jurisdictions are entitled to tax online transactions with sale or use taxes. Indeed, many jurisdictions have already implemented this tax policy for online sales and are increasing their state revenue. This article briefly explains the scope of the Streamlined Sales Tax Project (“SSTP”). SSTP is a project proposing solutions for a unified policy on sales and use taxes among the U.S. states.
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BACK TO TOP | | THE CONCEPT OF "NEXUS" IN SALES AND USE TAX
The most important concept involving sales and use taxes and electronic commerce is "nexus." Sufficient nexus must exist in order for a state to subject a vendor to sales and use tax collection obligations. Nexus may be defined as a connection between the vendor and state such that subjecting the vendor to the state's sales tax rules. These rules should not be unfair to the vendor or harmful to interstate commerce. These two requirements of fairness to the vendor and no impediment to interstate commerce stem from the U.S. Constitution, respectively, from the Due Process Clause and the Commerce Clause. Both of these requirements must be satisfied before any state will be able to impose sales and use tax collection responsibilities on a vendor.
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BACK TO TOP | | STREAMLINED SALES TAX PROJECT- NATIONAL GOVERNORS ASSOCIATION
One of the objections that make the top of the list when considering imposition of sales or use tax on Internet sales is the wide variety of state tax law and tax rates, and the burden it would create for web merchandisers. One of the proposed means of resolving the problem is the National Governors Association (NGA) Streamlined Sales and Use Tax Agreement (SSUTA).
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BACK TO TOP | | UNITED STATES STREAMLINED SALES AND USE TAX AGREEMENT
The Streamlined Sales and Use Tax Project (SSUTP) was organized under the auspices of the National Governors Association and the National Conference of State Legislatures in March 2000. The Project’s proposals were focused on improving sales and use tax administration systems for both traditional and remote sellers for all types of commerce, including e-commerce. This article offers information on the mission and functions of the SSUTP.
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| | | | CHAPTER 4: State and Local Policies for E-commerce Taxation |
| | | | STATE TAXATION OF THE E-COMMERCE
The fast growth of the Internet raises important issues about the fundamental nature of taxation on the state level. According to the Federation of Tax Administrators, Sales Taxation of Services: An Update on May 2005, most of the US states impose a sales tax on the "transmission" component of electronic commerce. This includes interstate or intrastate telecommunications. Approximately, one-half of the states impose a sales tax on specific categories of on-line content, such as the electronic transmission of software or cable television. Nearly one-quarter of all states impose an even broader sales tax on a variety of on-line content, such as electronic information or computer services. These taxes are subject to the limits of the Internet Tax Freedom Act, which permits states to tax electronic commerce. However, the states generally impose sales and use taxes only with respect to sales of tangible rather than digital or intangible goods.
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BACK TO TOP | | RECOMMENDATIONS OF COLLECTING TAXES ON OUT-OF-STATE SALES
In order to meet the requirement that a customer pays the same tax for an item purchased through electronic commerce as an item that was purchased in a local store, the tax for both depend on the location of the buyer, not the location of the vendor. Although, it is unclear whether the amount collected under a sales tax would be worth the probable discouragement of using the Internet as a shopping medium and the corresponding depressant effect on the U.S. Economy. However, it has been recommended strongly that, the tax must actually be collected on electronic commerce. This means that an out-of-state vendor may be required to collect this tax, even if this vendor has no physical presence in the buyer's state. Certainly, the objectives of fairness and economic efficiency would be achieved whether the collected tax goes to the state where the vendor is located, the state where the buyer is located, or the federal government. This approach would be similar to the European Union (“EU”) approach. In the EU, even non-EU merchants are required to collect and remit taxes to the EU state where the buyer is located for goods or services bought by or to be used by EU residents; no matter where the vendor is located.
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BACK TO TOP | | TAX POLICY AND PROPOSALS FOR STATE AND LOCAL TAXES
The expansion of Internet commerce has presented policy makers with a set of complex new issues over the last few years, from encryption to broadband access; yet, taxation is the most troublesome issue among all. On one hand, free-market libertarians argue that online retail transactions should stay beyond the reach of the Tax Man. On the other hand, state and local officials view the Internet as a tide that will wear away local and regional tax bases with devastating consequences as more and more sales move from the brick-and-mortar retailers on "Main Street" to the atmosphere of Cyberspace. Some Policy makers have adhere to three key principles (Fairness, Simplicity, Limited Scope) as they craft a system for taxation of remote sales over the Internet; others believe that by allowing state and local governments to tax across borders is fundamentally unjust.
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BACK TO TOP | | LIMITATIONS FOR IMPOSING INCOME TAX ON E-COMMERCE BY OUT-OF-STATE FIRMS
In general, Congress has vigorously exercised its power under the Commerce Clause by limiting the state and local governments’ authority to collect income tax from out-of-state firms. This article addresses the issue of taxation of out-state companies in the United States, an issue faced by e-commerce transactions and still under the Commerce Clause of the United States Constitution.
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BACK TO TOP | | STATES CONCERNS ABOUT ECOMMERCE TAXATION
The exponential growth of electronic commerce poses a daunting challenge to taxing authorities’ traditional approaches to both direct and indirect taxation in the United States. Such potential growth has many federal, state and local government officials worried that they are not adequately prepared to tax this flood of new commerce. Additionally, elected officials from jurisdictions around the country have expressed concern about the possible loss of revenue as e-commerce continues to grow. This article addresses the following issues, state concerns about E-commerce taxation, steps taken by various state tax authorities with regard to E-commerce taxation, and what are the possible solutions for the proper regulation and implementation of E-commerce tax
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| | | | CHAPTER 5: A Specific Case: Online Sales of Cigarettes and Tabacco Products |
| | | | SALE OF CIGARETTE AND OTHER TOBACCO PRODUCTS THROUGH INTERNET AND ITS TAXATION IN THE UNITED STATES
Online sales of cigarettes are increasing at a rapid rate. Each packet of cigarettes, purchased through normative channels, carries a hefty tax load in the form of state sales and use tax, and excise tax.
Online sellers do not collect state sales and excise taxes, and can therefore sell cigarettes at low prices. The problem of cigarette tax evasion has risen drastically due to the proliferation of Internet sales of cigarettes, which results in excessive loss of revenue, according to state authorities. This article explains the Jenkins Act requirements for online sales of cigarettes and informs on who are the enforcing authorities for these sales.
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BACK TO TOP | | ONLINE SALE OF CIGARETTES AND TAXATION IN TEXAS
Texas state excise taxes are imposed on online sales and purchases of cigarettes. Chapter 154 of the Texas Tax Code deals with the cigarette tax. The cigarette tax is levied on all sales and purchases of cigarettes, including both customary and online sales. Additionally, state and local sales taxes are due on cigarettes sold in Texas. The Comptroller's office is empowered to collect the tax due on sales of cigarettes. This article provides a summary on the collection of taxes for the sale of cigarettes in Texas, including online sales.
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BACK TO TOP | | TAXATION OF ONLINE SALES OF TOBACCO PRODUCTS IN ARIZONA
In Arizona, not only tobacco sold online and by convectional means is taxed. There are three taxes applicable to tobacco sales in Arizona. They are luxury tax, tobacco tax, and Indian Reservation Tobacco Tax. These three are collectively known as ‘Tobacco tax.’ Traditional and online vendors are obligated to collect and remit all taxes imposed on tobacco products. This article informs on how cigarette distributors pay the applicable taxes in Arizona, what are the requirements for selling and delivering tobacco products to Arizona residents, and the general requirements every tobacco vendor in Arizona must meet.
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BACK TO TOP | | TAXATION OF ONLINE SALE OF TOBACCO PRODUCTS IN ALABAMA
Wholesalers are obligated by the Alabama Department of Revenue to collect and remit taxes imposed on the online sale of cigarettes and other tobacco products. If the tax is not paid by the wholesaler, the retailer or the consumer becomes obligated to pay the unpaid tax. The rate of taxation on tobacco products varies from product to product. This article answers the following questions: What is the tax rate imposed on sale of cigarettes in Alabama, What is the tax rate imposed on “cigars” in Alabama, What is the tax rate for “chewing tobaccos” and “little cigars” in Alabama, What is the tax rate for “smoking tobacco” in Alabama, and How is state tax on tobacco products paid.
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| | | | E-commerce and Its Implications for Competition Policy
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BACK TO TOP | | SBA Announces New Internet Reporting System for Small Business Subcontracting
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BACK TO TOP | | 37 US Attorney Generals and the Phillip Morris U.S. Company sign agreement to prevent illegal sells of cigarettes over the Internet
The Attorney Generals found that an illegal sell of PM US cigarettes was taken place over the internet. The agreement calls for three specific remedies, First, PM US will not directly ship cigarettes to US customers that the Attorney General has found to be dealing with illegal internet and mail sells. Second, PM US will reduce the amount of products available to some direct US customers held to be re-selling cigarettes to illegal Internet vendors. And third, PM US will expel from its incentive program, those customers that according to the Attorney General are involved in the illegal sell of cigarettes over the Internet.
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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.
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BACK TO TOP | | California Courts could Assert Jurisdiction over interactive Websites Based on the Level of Interactivity of such Website and on the Nature of Information
The California Supreme Court affirmed the judgment of Court of Appeal and held that California courts could assert jurisdiction over interactive Web sites based on a determination of the level of interactivity of such Web site and on the nature of information exchanged via such Web site. The use of a website may be enough to qualify for jurisdiction under the applicable state statutes, which may not necessarily be the case in other states.
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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.
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BACK TO TOP | | EU Special VAT Registration Scheme for Non-EU Businesses
There is a special VAT registration scheme for non-EU businesses, such as private individuals and non-business organizations, that provide 'electronically supplied service' to EU consumers. This scheme offers a discretionary, simplified means of registering and accounting electronically for EU VAT, effective July 1, 2003.
An 'electronically supplied service' is a service that, in the first instance, is delivered over the Internet or through an electronic network. These services include the provision of digitized products, such as software, and the provision of any service which provides, or supports a business or personal presence on an electronic network; for instance a website or a Webpage.
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BACK TO TOP | | Theories on the Value of Networks
During the 1990’s, Robert Metcalf, the inventor of the Ethernet, declared that the value of an Internet network is proportional to the number of people attached to it. Indeed, Metcalf said the value of a network is proportional to the square of the number of its users. The mathematical explanation of AOL’s and Yahoo’s success was provided in terms of this Metcalf Law and this theory has had deep impact on networks’ value analysis since the 1990’s. Yet, other mathematician, Andres Odlyzko, professor at Minnesota University, has recently come up with a new theory on the value of networks. Odlyzko’s new theory has some influence from a theory applied 75 years ago by George Zipf and explained by Odlyzko in his IEEE Spectrum paper.
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BACK TO TOP | | OECD Adopts Stronger Environmental Rules for Export Credits
OECD countries have agreed to a Recommendation that calls for stronger environment-related requirements for export deals to qualify for export credit backing from their governments' Export Credit Agencies (ECAs).
This latest Recommendation, which replaces one agreed in 2003, requires OECD Member governments to review projects for their potential environmental impacts and to benchmark them against international standards, such as those of the World Bank Group. It also calls for more public disclosure of information, which will increase transparency for the most sensitive projects. In addition, ECAs will exchange information more regularly in order to improve common practices and promote a level playing field between export credit providers.
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BACK TO TOP | | The Principle of Neutrality in Offshore E-Commerce Taxation
Very often a transnational phenomenon, ignoring boundaries and frontiers, e-commerce presents challenges to any single State's laws . In the field of taxation the need has been created for tax administrations to assess the potential impact of this form of business both on the tax base as well as on the way in which taxes are administered. Since goods and services are bought and sold via the Internet across such national boundaries, any one State is faced with the novel difficulty of taxing such material effectively. Taking as an example the sale of software from country A to country B with distribution by downloading from a Web site based in country A or C, there is here no place of physical import where duty can be imposed or customs post to be checked through .
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BACK TO TOP | | Antitrust Claims and the E-commerce Market- May Significant Mirror Hosting Agreements Typify an Antitrust Claim?
As more brick-and-mortar companies enter the e-commerce market, we may witness how traditional antitrust and trade rules, like the United States (US) Sherman Act and the Clayton Act, apply to e-commerce dealings. Section 1 of the Sherman Act (15 U.S.C.S §1) declares illegal (it is a felony) any restrain of commerce or trade among the states, or foreign nations, through contractual arrangements, trusts, or the like. This provision applies to any 'person,' be it a corporation or an individual. The US Clayton Act (15 U.S.C.S. § 18) precludes any person from engaging in any form of trade that creates monopoly or lessen competition. Hence, an interesting question is this: may significant e-commerce agreements like Mirror Hosting Agreements between big companies trigger application of antitrust laws?
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BACK TO TOP | | VAT Refund for Purchases Made in Italy by EU Non-resident Subjects
According to the Italian law, based on the Community provisions, EU non-resident travellers may be granted VAT refund for goods intended for personal or familiar use purchased in Italy. This relief - not covering the services supplied, for example, by hotels, restaurants, taxis, agencies etc.) - is surely an advantage for the foreign travellers: in fact they can save from a minimum of 4% up to a maximum 20% of the selling price of the goods purchased. However, the EU non-resident traveller can make use of this benefit provided that he meets all the requirements set forth by the Italian legislation.
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BACK TO TOP | | Are Tax Authorities Surfing E-business’ Web?
Sure they are; and they will. We all have heard of Uncle Sam's, and its counterpart in other countries, far reaching compliance investigations. Well, that investigation capacity is not declining when it comes to e-commerce businesses. The US Internal Revenue Service (IRS) and other foreign government tax authorities, like the Canada Revenue Agency (CRA), are requesting e-business seller"s records to determine whether those e-commerce businesses are candidly reporting their revenue. For instance, the IRS and the CRA have requested eBay confidential financial information about their online sellers. Not surprisingly, Federal courts in both countries have ordered eBay to disclose that information once eBay has refused to provide the confidential data.
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BACK TO TOP | | US House Blocks Internet Taxes for 4 More Years, as Private Studies Prove Web Commerce Driving US Economy
In an encouraging development for online merchants and purveyors, and the American economy as a whole, the House approved a four-year ban on an Internet sales-tax, voting to continue this tradition of no online taxes. It was unanimously passed by Judiciary Committee as an addition to the Internet Tax Freedom Act (ITFA) Amendments Act of 2007. The Committee Chairman John Conyers (D-MI), introduced the bill, saying it would extend the ban on state and local taxes on Internet access until November 1, 2011, giving Congress longer to ponder whether they will tax 'web sales. Conyers called the legislation, "pro-consumer, pro-innovation, and pro-technology." The legislation merely highlights the ongoing argument in Washington over whether 'Net taxes should be permanently outlawed.
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BACK TO TOP | | IRS Warns of Tax Rebate Phishing Scam
The Internal Revenue Service is warning taxpayers that a clever new email and phone scam has been hatched to defraud those looking for the tax rebate that President Bush has been promoting as part of an emergency stimulus package to battle the recent U.S. economic downturn. The fraudsters are trying to take advantage of a rebate that the Government has yet to enact that would direct the IRS to refund tax payments. The con artists are also using other tactics to gain access to victim accounts, which are listed below.
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BACK TO TOP | | Are Online Businesses Subject to Corporate Income Tax in the United States?
Yes, online businesses may be subject to corporate taxes in the U.S. state where they have 'substantial nexus.' Although this answer seems simple, its practical application requires careful analysis of what legally constitutes ‘substantial nexus." A subsequent and also complex question would be what if an e-business has ‘substantial nexus’ in different states? As any tax concern, answering these questions requires the analysis of a competent tax attorney. Yet, this articles provides some guidance on how an e-business may be subject to corporate tax and the importance of the ‘substantial nexus’ discussion.
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