Elonka wrote:

]
] Frankly, this sounds like such a bureaucratic nightmare, I can
] see some companies simply refusing to sell software in certain
] areas of the world, because of the complexity in working out
] tax issues.
]

Working for an accountant, I've seen evidence that this dread is seeping into even the most non-wired businesses. Much evidence can be found in the TN sales tax hike of last year. It seems to me that the straw to break the back of this particular camel is not too far away. Options?

Either A) Institute a tax structure with so many tiers, exceptions, tables and loopholes (let's not forget those loopholes!) where no-one really knows if they are going to be taxed or not, causing them to refrain from engaging in commerce in your particular (county, city, state, country - your choice)

OR B) You make a drastic simplification of your tax rules, eliminating loopholes in favor of an equitable, "even-keel" or "flat" taxation system, that somehow still manages to encourage people to sell things and for other people to purchase them.

Not so easy, methinks - but boy, will the economists have a ball over the next few years!

RE: Internet Law - Taxation & 'Nexus'