[LINK] Consensus reached on how to tax e-commerce

[Tony Barry]

Linkers

This reminds me of something Whitlam used to say about something 
Gorton said. He (Whitlam) would quote Gorton and then say something 
along the lines of "So now we know. What could be clearer than that?"

Tony

Extracted item for information.

Source: Edupage, January 10, 2001

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CONSENSUS REACHED ON HOW TO TAX E-COMMERCE
The Organization for Economic Cooperation and Development (OECD),
which represents 30 industrialized nations, announced a
consensus on how to tax various e-commerce activities. The
group's committee on fiscal affairs established a loose set of
e-commerce tax rules and now intends to work on defining the
regulations more fully. According to the committee's rules, when
a user completes a transaction with an online firm located in
another country, the company does not have to pay taxes to the
country from which the user originates. The exemption is still
valid when a third party hosts the company's Web site. However,
companies are subject to tax in countries that host servers if
the server carries out business-critical activities. If the server
only carries data that is processed somewhere else, the company
is not liable for taxes. The new rules represent a major step
forward in standardizing e-commerce tax laws, the OECD says.
(Financial Times, 10 January 2001)
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