Research On Taxation Issues Arising Under The E-commerce Context

Electronic commerce ("e-commerce") is a new technology which has grown rapidly in recent years. It has changed the whole economy from hardware-oriented to software-oriented. The nature of the Internet and the globalization of the world economy posed by e-commerce challenge the tax mechanism around the world as well as those of China and Hong Kong. The rapid growth of e-commerce in Hong Kong has been marked by the enactment of the Electronic Transaction Ordinance ("ETO"). ETO aims to provide adequate assurance that electronic contracts are at least as reliable as paper contracts.Since Internet creates business opportunities to trade globally, it is not just the tax problems confined to China and Hong Kong, but also relating to the whole world. The role of the leading global organizations e.g. European Union, the Organization for Economic Co-operation and Development ("OECD") in formulating tax policy and international census on a consistent tax treatment for e-commerce is discussed. We will also evaluate the tax issues posed by e-commerce and make suggestions for possible solutions.