Brexit & EconomyPoliticsTreasury should probe ‘virtual’ taxation

Treasury should probe 'virtual' taxation

Advisers call on authorities to consider taxing earnings generated in 'Second Life' virtual world

Tax advisers have urged UK authorities to take the lead in considering the
tax implications of revenues generated in the virtual world.

David Nickson from KPMG
, said that the Treasury should look into earnings generated in ‘Second
Life’, a digital world where people can set up businesses and earn money, and
also bring that money into the real world.

Nickson told the FT
that there was a risk that ‘Second Life’ could be used as a way
to avoid tax and cover up fraud.

The US Congress joint economic committee is looking into the issue, and is
expected to produce a report on the topic. The US Internal Revenue Service is
also probing the matter, and considering whether it should tax virtual earnings.

Further reading:

Visit the
Second Life

Read more about the Internal Revenue
Service

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