Taxation (1999 - 2002)
The GBDe continues to work towards international coordination in the development of tax policies that will promote global electronic commerce for the benefit of businesses and consumers. This was partly achieved through the adoption of a monitoring role by which the GBDe has been able to respond rapidly to developments in taxation systems relating to e-commerce in important jurisdictions and also through deepening the dialogue with governments. Emphasis continues to be placed on the promotion of basic tax principles and their practical application with regard to both direct and indirect taxation.
Tax policy must address governments’ legitimate need to collect tax revenues to fund public services and eliminate competitive distortions faced by local industries. To find tax solutions that balance these national interests with global realities, the GBDe is committed to participating in government/industry dialogue on an international, regional and national basis.
The GBDe cautions that evolutionary changes in tax systems should not force businesses to make frequent and costly changes in the tax system or technological investments for tax reasons alone.
Tax policy will greatly impact the potential growth of the emerging networked economy. Government and industry must work together to create a tax system that stimulates this digital marketplace. The GBDe recommends that governments rely on the following basic principles which would guide future GBDe work in this area:
- Neutrality: Tax policy must not penalize businesses and consumers who choose to conduct transactions electronically rather than through traditional channels of commerce.
- Simplicity: The rules for taxing all forms of commerce, including Internet-enabled transactions, should be simple, clear and easy to apply.
- Fairness: No single category of e-commerce operators should be penalized by the allocation of tax burdens. The liability for collecting taxes on virtually traded products should not be forced upon financial intermediaries, providers of electronic infrastructure or other parties who are not liable for taxes on similar conventional transactions.
- Enforceability and Technological Efficiency: Government and industry must take care to develop credible compliance models to secure tax collection. Such models should be reasonable, technologically feasible, and free of undue burdens or economic distortion.
- International coordination and consistency: Tax policy worldwide must be coordinated and consistent with a model that can be implemented on a global basis.
- See also these PDF downloads:
- GBDe Recommendations (Brussels), October 2002
EN PDF 202KB
- GBDe Recommendations (Tokyo), September 2001
EN PDF 214KB
- GBDe Recommendations (Miami), September 2000
EN PDF 161KB
- Taxation and Tariffs
- GBDe Recommendations (Paris), September 1999
EN PDF 97KB