le, fulfillment, and collection of payment. And again, the application such equipment focuses not on the machine's functions but on the place of the personnel. The controlling fact should be whether the enterprise personnel carry on significant business activity that results in the actual realization of profits, other than setting up, operating and maintaining the machines. Finally, a finding of permanent establishment requires a certain element of permanence, given the ability of Businesses to structure their electronic commerce operations to move servers, databases, software, and server operations at will, to use mirror servers or server arrays, and to build redundancy into their hardware platforms. Businesses engaged in electronic commerce are relatively indifferent to the location of particular hardware. The consumers are equally indifferent with the functioning of the business and jurisdiction of taxing authorities and are not concern with server location, and an in-country location does not convey any business or economic advantage. Moreover, the use of a server is no more integral to the enterprise's business presence on particular location because of the use of telephone and fax and other electronic connect are sufficient to establish the permanent establishment. The jurisdiction based on the presence of a server alone is thus rather illusory and ambiguous and to treat the mere presence of a server as a permanent establishment would in effect result in new taxation of electronic commerce in violation of the international principles of neutrality and avoidance of double taxation relief mechanism Business placed in a certain jurisdiction may be restricted to host the web site and its database within the jurisdiction of taxing state. I believe that a clarification based on existing principles that a server does not in itself constitute a permanent establishment will contribute to greater enforcement of tax provisions and will also cause enforcement of principles of certainty, simplicity, and neutrality and further more it will eliminate conflict of laws.

o Internet service providers should not be regarded as legal agents for purposes of enforcement of tax provisions

Any arrangement or availing the facility of hosting server or computer network for purpose of hosting of website or data base does not constitute the permanent establishment. For example, when the enterprise's web site is hosted by an Internet service provider (ISPs) on the ISP's equipment in the taxing authorities can not exercise tax jurisdiction, although where the enterprise hosting server at particular jurisdiction can be placed under tax net because of services rendered within the jurisdiction of a state.

I make recommendations on this point that hosting of enterprises business can not constituted permanent while the Business of ISPs constitute permanent establishment because of installment of computer and networking hardware for purpose of delivery of hosting server and to tax authorities need to clarify that the relationship between a business enterprise and an Internet service provider, acting in the ordinary course of Business for facilitating the internet services, will not result in a permanent establishment.

As a l

上一页  [1] [2] [3] [4] 下一页

收藏至：