Tax Problems Rising From E-commerce

Since 1990's,with the rapid development of computer-network and communication technology, with Internet widely used, E-commerce as a new trade form is growing at an astonishing speed. The whole world has been focusing on it. This is an information technology revolution. This is a sign of human beings' consistent progress. With Internet technology being ripe. E-commerce has become a new irreversible economic mould. Its growing speed will surely stand for a nation's development. Its existence not only has a great effect on our traditional trade form and economy life but also challenges our taxation, tax policies, tax regulating and international tax regulations.Because E-commerce relies on Internet, it has big differences from the traditional trade form, which surely bring E-commerce taxation its own features, such as being multinational, concealing and being convenient etc. However, it is these features that cause E-commerce taxing a great number of difficulties. For example, should E-commerce be taxed? If it could be, then how? And how much should the tax rate be? These are the questions the whole worlds need to answer. Different nation and different organization holds different views but generally the views have divided the nations into two groups. One group stands for E-commerce exempting from taxation such as America. Another group such as EU advocates levying tax on E-commerce.In order to realize fair competition and increase a nation's tax revenue, E-commerce would be taxed sooner or later. But E-commerce's features, such as being multinational and concealing, make it difficult for us to tax in traditional way. First, in E-commerce, we can't fix where the traditional permanent organizations are and we can't easily find out who are the taxpayers and what are the tax objects. Second, people do E-commerce without using any paper. No paper bills make tax regulation and checking more difficult but offer more chances to those people to evade taxation. This leads to enormous amounts of money washed away. Last, most nations have jurisdiction over tax on the basis of the principle of resident and the principle of territorial possession. In E-commerce, permanent organization can't be fixed easily so that the rights of tax jurisdiction according to tax source of land are weakened. And, any people from any nations have access to do business through Internet. No one can easily decide which nation they come from every time. This makes it impossible to levy tax according to the principle of resident.E-commerce has spread into all the fields of economy life. Its volume of trade has been increasing all the time. Needless to say, its growing has challenged all nations'...