Taxation on the Internet

1. Taxation on the Internet Jean WESLEY Emmanuel Mercy College ISBN 510: Anna Story Fall 2006

2. Introduction • A brief overview in Taxation Structure. • Individual Employees, Farmers, International Taxpayers, Military, Parents, Self-Employed, Seniors & Retirees, Students • Business Corporations, International Businesses, Partnerships, Small Business, Self-Employed • Charities & Non-Profits Charitable Orgs, Churches and Religious Orgs, Contributors, Other Non-Profits, Political Orgs, Private Foundations • Tax Professionals E-file Providers, Enrolled Actuaries, Enrolled Agents • Retirement Plans Community Benefits Practitioner, Plan Participant/Employee, Plan Sponsor/Employer • Tax Exempt Bond Community Bond Professionals, Bondholders, Conduit Borrowers, Issuers http://www.irs.gov/

3. The following chart compares the marginal tax rates for tax years beginning in 2001 for corporations, married individuals filing jointly, and for singles. http://taxguide.completetax.com/text/Q10_2026.asp

4. For more information visit • http://www.irs.gov/ • http://www.completetax.com/CTindex.asp?welcome=SK1322233 • http://law.freeadvice.com/tax_law/tax_law/140/ • http://www.ibls.com/document_top.asp?d=1881 • http://www.taxanalysts.com/

5. Topics of Discussion • Discuss Pros and Cons-International and National Issues. • A) Pros-National Issues. • B) Cons-National Issues. • C) Pros-International Issues. • D) Cons-International Issues.

6. A) Pros-National Issues • Who’s in favor of the taxation on the Internet? All Tax Collectors * Federal Government * State and Local Government. * Brick-and-Mortar Organizations • Why in favor of the taxation on the Internet? * Because the government is to collect tax on all profitable or business interactions. • Example: The government. loose tax income opportunities on all interactions made through business Such Ebay, Amazon, or even Click-and-Mortar Organizations such as B&H. • How it relates to us: All this money the government is not making on online interaction could have been profitable investment for us such as financial aid, a four year college for free, Social security, med-Aid or build more powerful weapon to make our Army stronger enforcement forhome land Security, Infrastructure etc…

7. B) Cons-National Issues • Who’s against the taxation on the Internet? * Virtual or Pure Play Organizations * Click-and-Mortar Organizations * Online customers or e-shoppers • Why against taxation on the Internet? * Reduce disposable income. * Attract more customer to online shopping. * maintain advantage over the nexus. • Example: Customers is the king and the king would not want to spend the same money and to wait to get the product even over night • How it relates to us: The cost of shopping, reliability, the cost to open a virtual sore is less as to compare with a physical store, an equal opportunity for all business no matter Race and color.

8. C) Pros-International Issues • Who’s in favor of the taxation on the Internet? All Tax Collectors * Federal Government * State and Local Government. * Brick-and-Mortar Organizations • Why in favor of the taxation on the Internet? * Because the government is to collect tax on all profitable or business interactions. • Example: The government. loose tax income opportunities on all interactions made through business Such Ebay, Amazon, or even Click-and-Mortar Organizations such as B&H. • How it relates to us: All this money the government is not making on online interaction could have been profitable investment for us such as financial aid, a four year college for free, Social security, med-Aid or build more powerful weapon to make our Army stronger enforcement forhome land Security, Infrastructure etc…

9. D) Cons-International Issues • Who’s against the taxation on the Internet? * Virtual or Pure Play Organizations * Click-and-Mortar Organizations * International e-shoppers • Why against taxation on the Internet? * Reduce disposable income. * Attract more customer to online shopping. * maintain advantage over the nexus. • Example: Customers is the king, therefore, e-commerce businessmen abd businesswomen need to keep the king happy by been more reliable, keeping the cost down and tax free. * Specially company like bodog.com Click: http://abcnews.go.com/Nightline/story?id=2108601&page=1 ABC news Correspondent MARTIN BASHIR and CALVIN AYRE Owner of bodog • How it relates to us: * No refund on income tax for overseas business * A larger marker for business owner,

10. Photos of MARTIN BASHIR CALVIN AYRE MARTIN BASHIR CALVIN AYRE CALVIN “the James Bond” of Costa Rica

11. Discuss possible solutions • National Issues * Uniformity in Law and Joint Administrative Mechanisms: A "Synergistic" Relationship http://www.mtc.gov/UNIFORM/Uniform.htm * Intelligent Databases: Make good decision on which state the tax will be the beneficiary http://www.ecommercetimes.com/story/43833.html • International Issues • “he legal framework proposed by the Commission The proposed system involves:• A list of twelve mandatory general items of information on any invoice;• The possibility of transmitting the invoice electronically subject to the use of a digital signature system guaranteeing authenticity of origin and data integrity;• The possibility in certain circumstances of outsourcing invoicing operations to a third party or to the customer;• Free choice of the place and method of invoice storage provided immediate access, legibility and data integrity are guaranteed.” • http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/00/1325&format=HTML&aged=0&language=EN&guiLanguage=en

12. Choose a position & argue for it • Now if I am doing a master in Internet and someone expect to be in favor of online Taxation, than we are not wearing the same pair of glasses. * As a e-businessman I want I want: * spend less to open my own business * Attract more customer by allowing then a tax free opportunity * I want to look up to Amazon, Ebay, an E-mall or bodog.com

13. Thank you! • Question…