Basu, S orcid.org/0000-0001-5863-854X (2017) International Direct Taxation and E-Commerce: A Catalyst for Reform? NUJS Law Review, 10 (1). pp. 19-48. ISSN 0975-0029
Abstract
This article critically analyses the challenges e-commerce poses to the traditional source- and residence-based taxation systems. It presents an exploratory study of two fundamental taxation principles that apply to international transactions in general and, more specifically, to e-commerce: the choice of residence-based or source-based taxation in governing the tax treatment of both domestic income accruing to non-residents and foreign income accruing to residents; and use of permanent establishment (PE) status in instituting the economic nexus required to assert jurisdiction over tax business profits. It is argued that in the interpretation and application of the rules, a clear distinction should be made between conceptual and practical issues. While there may be overlap between them, distinct issues exist regarding the normative questions of how and where profits arising from e-commerce should best be taxed as a matter of principle, as well as how such taxes should be implemented. The formulary apportionment of income earned by e-commerce business based on an economically justifiable formula provides a viable solution.
Metadata
Item Type: | Article |
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Authors/Creators: | |
Copyright, Publisher and Additional Information: | NUJS Law Review © 2017 |
Keywords: | E-commerce taxation; International Taxation; Direct Taxation; E-commerce; Regulation; Tax evasion |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Education, Social Sciences and Law (Leeds) > School of Law (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 02 Jun 2017 11:48 |
Last Modified: | 05 Oct 2017 16:16 |
Published Version: | http://nujslawreview.org/wp-content/uploads/2017/0... |
Status: | Published |
Publisher: | National University of Juridical Sciences, Kolkata |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:117166 |