TaxPersonal TaxUS summit over future of tax freedom for internet sales

US summit over future of tax freedom for internet sales

A panel from the US private and public sectors is to meet today to decide whether e-commerce will retain its tax-free status in the states.

The e-commerce commission has been charged with untangling the increasingly controversial issue of taxing online sales. In its final meeting today, the commission is expected to begin putting the final touches to its much-awaited proposals, expected next month.

The commission was set up following the Internet Tax Freedom Act of October 1998, which imposed a three-year moratorium on any new internet taxes. The issue has so far divided government officials and businesses with states fearing a loss in revenue and critics claiming that some e-taxes are legally unenforceable.

But these differences have also plagued the commission with local government officials, concerned at a potential loss of up to $500m a year, threatening legal action to stop the commission’s proceedings.

The business representatives, including AT&T and AOL are expected to propose a continuation of the moratorium for five years to allow states to simplify tax codes and make it easier to eventually collect some form of e taxes. The proposals could form the basis of the commission’s final report.

The European Commission, which has already published guidelines on indirect e taxes, will conduct its own study regardless of the commission’s findings. The Chancellor Gordon Brown is also expected to clarify some of the UK’s e-commerce tax policies in tomorrow’s budget.

Brown unveils plan to reduce offshore tax evasion

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

3d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter