This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
  • Delicious




Deloitte & Touche Appoints Global Director for e-Business Tax Services

Tax-news.com

10 February 2000

"As companies engage in more business over the Internet, their economic characteristics do not always fit neatly into the pigeonholes that our tax laws have established," McClintock said. "Since our tax laws do not change as rapidly as e-commerce changes, tax planning within these companies must be flexible enough to evolve. Our aim is to help our clients become more agile in dealing with their tax needs and take advantage of tax strategies that fit their unique situation."

According to McClintock, companies engaged in e-commerce face a myriad of tax issues that are relatively new, including:

-- A much greater administrative burden: With 30,000 taxing jurisdictions, there are as many as 6,500 different tax forms in the United States alone. Internationally, more than 200 countries impose direct and indirect taxes.

-- An understanding of the Internet Tax Freedom Act (ITFA). Although the ITFA, passed by Congress in October 1998, provides for a three-year moratorium on new state taxes on Internet access charges and on other forms of taxation, not all transactions conducted over the Internet are "tax free."

-- Knowledge of a company's nexus -- the degree of business or physical presence in a tax jurisdiction required before a state or local taxing authority can tax a business or require it to collect tax. Avoid being ensnared in unnecessary tax liabilities by establishing operations in cyber-friendly states.

-- Careful consideration of the tax implications of a company's e-business strategy before finalizing and beginning the design and implementation phases.

-- Planning now for international tax liabilities if going global is a company's goal, including customs duties, value-added taxes and other taxes wrought by e-business, in addition to the costs associated with managing the legal and financial requirements.

Deloitte & Touche, one of the nation's leading professional services firms, provides assurance and advisory, tax, and management consulting services through 30,000 people in offices in more than 100 U.S. cities. Deloitte & Touche is part of Deloitte Touche Tohmatsu, a global leader in professional services with more than 90,000 people in more than 130 countries.

Deloitte & Touche refers to Deloitte & Touche LLP, Deloitte Consulting LLC, and related entities. For additional information, visit Deloitte & Touche's Web site at www.us.deloitte.com.

.

 

 






Write a comment