Font Size: a A A

A Study Of Tax Revenue Problems In Electronic Commerce

Posted on:2005-02-28Degree:MasterType:Thesis
Country:ChinaCandidate:B JiaFull Text:PDF
GTID:2156360125955624Subject:Political economy
Abstract/Summary:PDF Full Text Request
With the rapidly-widespread use of Internet and the increasingly economic infiltration of Internet, Electronic Commerce has become one of rapidly-developed commercial fields in the world. It can increase potential incomes on tax revenue. We are paying a good deal of attention and studying many problems on current tax theory, tax policy, tax collection, tax management and international tax coordination.Electronic Commerce has a great effect on tax revenue system, tax collection and tax management, which has never existed before. Firstly, traditional method of calculating tax in terms of account books is coming under attack. Traditionally, people collect and manage tax on a basis of a taxpayer's actual tax payment receipts while there just exists digital information on tax collection and tax management in Electronic Commerce. Therefore, people have no reliable basis for calculating tax payments. Secondly, income tax system in effect is aimed at dealing in visible products and has various tax payment regulations. Since Electronic Commerce came into being, visible products have been transmitted and copied in terms of digits, which makes boundary line between visible products and services become increasingly obscure. Because information and data-selling business on networks such as books, newspaper, CD, computer software and intangible asset are easily copied and downloaded, concepts among visible products, invisible labor services and special permission are made dim. That makes the confusion of taxation objects. Thirdly, value added tax (V.A.T.) in effect is suitable for the principle of destination. However, as far as commodities in terms of digits in Electronic Commerce are concerned,sellers do not know where the users are, whether the services have been exported abroad as well as whether they should apply for export drawback. Meanwhile, the users are not sure whether commodities they have received are from their home or abroad, and they are not sure whether they should pay V.A.T. In addition, one computer can have different web addresses while different computers can have the same web addresses. As a result of trade exchange on networks, it is increasingly difficult for tax departments to make an inventory of the origins of goods and of loans. People can not continue using the principle of destinations. Fourth, international tax revenue jurisdiction is generally divided into inhabitant tax revenue jurisdiction and income origin tax revenue jurisdiction. But in Electronic Commerce income origin tax revenue jurisdiction has no effect due to difficult judgment of where the trade deals, who provide and use products and services. The differences of tax collection and tax management among countries all over the world make international coordination faced with a big challenge.The development of Electronic Commerce is just a beginning in China. But we should know its huge potential in the future development. As for tax revenue problems in Electronic Commerce, we should take a positive attitude. On one hand, we make efforts to study our general and special policies to safeguard our interests. On the other hand, we should pay close attention to the development of Electronic Commerce. We do not make it to be an obstacle of tax policies, or we will be eliminated during the process of the globalization of the world economy. As a result, we should take the following measures: 1) to follow the principle of tax revenue in Electronic Commerce on which we have reached an agreement with other countries in the world as well as to promote the normal development of Electronic Commerce; 2) to increase the creation of electronic tax revenue system and to improve the quality and efficiency of tax collection and tax management;3) to speed up the building of electronic tax business, to strengthen the management of V.A.T., to add investment on studying problems of tax revenue in Electronic Commerce and to work out tax policy in Electronic Commerce which is most suitable for Chinese condition; 4) to pay close attention to internationa...
Keywords/Search Tags:Electronic Commerce, tax revenue, great effort, countermeasure
PDF Full Text Request
Related items