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Will You Add? - Electronic Commerce Tax Jurisdiction and Principles of Permanent Establishment
NUMBERS, NUMBERS EVERYWHEREYou just placed a terrific story on the local news. Your boss asks you how many people saw it.“Well,” you say, “The latest Nielsen ratings showed that 211,000 people watch the 11 o’clock news on Channel 7 each night.”“Terrific,” your boss says. “Nice work.”But do those numbers really mean anything? Raw rating and circulation numbers make it easy for PR professionals to track the effectiveness of their work, but do they tell the complete story?Too many of us media relations types are under the influence of numbers devoid of context, and we may be doing our clients a disservice in the process.Why? Because just ten percent of the audience matter.THE INFLUENTIALSOkay…that’s a bit of an overstatement. The other 90 percent do matter.But the results of a recent survey make it clear that ten percent of Americans have a hugely disproportionate influence over what the other ninety percent do and buy. The study, released by the research firm NOP World, shows that the influentials persuade the rest of us to eat, drink, wear, like, dislike, watch, listen to, and read the things that they do.Therefore, any organization seeking press attention needs that ten percent. Measuring media relations success based on raw rating and circulation numbers simply doesn’t work, since those numbers may be comprised exclusively of non-influentials.WHERE TO FIND THEMThe influentials get their news primarily from the written word. Of the four top mediums, they get their news in the following order: (1) Newspapers (2) Magazines (3) Radio and (4) Television.The general public gets their news much differently, emphasizing broadcast. They prefer getting th
Your credit score is a numerical gauge of your ability to payback loans. Anytime you want to borrow money or get credit, the lender will look up this score to determine the risk involved in lending to you. The higher the score the better, so if you get a credit report and see a high score that means your credit is good, right?Not necessarily so. The fact is there are several different credit scoring methods. Credit scores calculated from the same credit reports can differ substantially from credit scoring method to credit scoring method. So how can you ever know what your credit score really is? Well, luckily, 75% percent of lenders use FICO scores exclusively and you can purchase FICO scores yourself--you just have to know where to go.FICO credit scoring was developed by Fair Isaac and Company as a numerical method of determining your credit worthiness. The scores range between 300 and 850 and are basically based on your past bill paying performance.It would be easy if everyone used this scoring system, but the three major credit bureaus each have their own version of the FICO score: Equifax uses the Beacon system, TransUnion uses the Empirica system, and Experian uses the Experian/Fair Isaac system.Althought they all use slightly different systems, all systems are based on the original FICO scoring method so generally your score should be equivalent from each. Of course, some lenders may also use their own scoring methods as well.There is only one place where you can get your FICO score from all three bureaus and that is at www.myfico.com. If you order your credit score from anywhere else, again be aware that these scores are "FAKOs" (or "fake") and can differ considerably from your FICO cred
The concept of permanent provide the foundation for imposition of taxation and limits the ability of a state jurisdictions to tax profits derived from sales or service performed by electronic commerce means through a Web site or their electronic devices. But the establishment of servers and other computer technologies do not meet the physical requirement, but only to the extent that they are established in the jurisdiction in question. The application of this principle of permanent establishment has been clarified by the OECD in its Commentary on Article 5 of the OECD Model Convention, which provides that a web site in itself does not constitute a permanent establishment and a server where the web site has been uploaded can only regarded as permanent establishment.
To the extent that a foreign person is not engaged in a Pakistani trade or business, then the absence of a permanent establishment is irrelevant since the Pakistan will not tax that person's active business income. However, some persons entitled to benefits under a Pakistani income tax treaty will not be subject to Pak Tax due to the lack of a permanent establishment, notwithstanding the fact that they may be engaged in a Pakistani trade or business. A Pakistani permanent establishment generally requires a fixed place of business in the Pakistan although a permanent establishment can also arise by imputation from the activities of an agent.
The state North Dakota of United States of America confronts enormous administrative problems in seeking to enforce taxes on electronic commerce. As the Court delivered the judgment and construed the provisions of laws in Quill Corp. v. North Dakota , states will often be unable to require the vendor to collect of taxes on goods or services sold in electronic commerce, and, insofar as they seek to do so, they are likely to engender lengthy and inconclusive litigation. What a state needs to see for purpose of imposition of taxation is the presence of intermediaries as source of taxation but an eventuality of facts are that role of intermediaries are so important and dynamic causing its own set of legal issues . The concept of permanent establishment is so important that I am going to discuss it in detail.
o The presence of a web site itself is not a permanent establishment
Does a web site or home page have a physical presence of some permanence? The best answer is that website can have its permanent establishment if the operator of site is located in jurisdiction of a state. Either home page or linked pages if the operator of pages residing in a state and performing service not delivery goods the where web site has been hosted can be regarded as permanent establishment e-business for purpose exercising jurisdiction of taxation. A web page is consisted of binary or digital code, and is housed on a magnetic surface in computer disk or hard where which is physical in nature. The binary code is viewable using a computer and a communications device. However, even though we can establish a physical presence, albeit a brand new form, the "establishment " exists on the
There is no worse person to be than the project manager at the end of a failed project. As an IT project manager, I have experienced that feeling and I can tell you it's not nice. IT projects are particularly difficult to manage. In fact there really aren't any IT projects, just projects that have elements of IT in them.The trouble with these projects is that often you are doing something that hasn't been done before, is unproven or cutting edge. Customers expect a good result not excuses, even though these projects are frequently a journey into the unknown. If we take the construction industry, building a new bridge for instance, we have been building bridges for hundreds of years and know how to do it. We understand how things are going to happen, in what order and the expected result. This is rarely the case with IT projects.Avoiding the common pitfalls of IT project management is not rocket science, it is simply a case of taking some sensible measures. Identified here are five killer mistakes of project management:Who Owns the Project?The Mistake:The nature of projects is change and change often encounters resistance. People don't like change so they need to know it is necessary and what benefits it will bring. In order for a project to deliver change it needs the backing of senior management. Without it the project will proceed very slowly. The sponsor (senior management) is the person that drives the change forward and the project is the mechanism for change. A project without support from senior management will struggle.The Solution:Make sure you have the top down backing from senior management. There must be direct communication from the sponsor to the stakeholders. The me
To the extent that a foreign person is not engaged in a Pakistani trade or business, then the absence of a permanent establishment is irrelevant since the Pakistan will not tax that person's active business income. However, some persons entitled to benefits under a Pakistani income tax treaty will not be subject to Pak Tax due to the lack of a permanent establishment, notwithstanding the fact that they may be engaged in a Pakistani trade or business. A Pakistani permanent establishment generally requires a fixed place of business in the Pakistan although a permanent establishment can also arise by imputation from the activities of an agent.
The state North Dakota of United States of America confronts enormous administrative problems in seeking to enforce taxes on electronic commerce. As the Court delivered the judgment and construed the provisions of laws in Quill Corp. v. North Dakota , states will often be unable to require the vendor to collect of taxes on goods or services sold in electronic commerce, and, insofar as they seek to do so, they are likely to engender lengthy and inconclusive litigation. What a state needs to see for purpose of imposition of taxation is the presence of intermediaries as source of taxation but an eventuality of facts are that role of intermediaries are so important and dynamic causing its own set of legal issues . The concept of permanent establishment is so important that I am going to discuss it in detail.
o The presence of a web site itself is not a permanent establishment
Does a web site or home page have a physical presence of some permanence? The best answer is that website can have its permanent establishment if the operator of site is located in jurisdiction of a state. Either home page or linked pages if the operator of pages residing in a state and performing service not delivery goods the where web site has been hosted can be regarded as permanent establishment e-business for purpose exercising jurisdiction of taxation. A web page is consisted of binary or digital code, and is housed on a magnetic surface in computer disk or hard where which is physical in nature. The binary code is viewable using a computer and a communications device. However, even though we can establish a physical presence, albeit a brand new form, the "establishment " exists on the
When five years ago I was faced with having to sell my services for the first time I was terrified. I hated asking for the sale. I dreaded the part where my potential clients inevitably came up with objections why they couldn’t use my services. I’ve since learned that lack of objections is not necessarily a good thing. In fact, I now welcome it when prospects tell me “why they can’t”. Frankly, when a potential client shares his reasons why he or she hesitates to take advantage of my offer, to me it’s a sign of two things; one – they are interested in my services, and two – I’m getting closer to closing the deal. But many professionals find “overcoming” objections and “closing” the deal stressful, unpleasant and “pushy”. If that’s you I want to share with you two lessons that helped me develop a different mindset around this. First, a “no” doesn’t always mean “no”. Mostly it simply “not now” or “I don’t have enough information to say yes.” Second, you can’t “overcome” your prospect’s objections – but you can give them information and tools that allow them to make a new decision. If you too experience anxiety around “closing sales” here are my favorite responses to the top five objections your prospective clients are likely to raise. OBJECTION #1: I HAVE TO THINK A
The state North Dakota of United States of America confronts enormous administrative problems in seeking to enforce taxes on electronic commerce. As the Court delivered the judgment and construed the provisions of laws in Quill Corp. v. North Dakota , states will often be unable to require the vendor to collect of taxes on goods or services sold in electronic commerce, and, insofar as they seek to do so, they are likely to engender lengthy and inconclusive litigation. What a state needs to see for purpose of imposition of taxation is the presence of intermediaries as source of taxation but an eventuality of facts are that role of intermediaries are so important and dynamic causing its own set of legal issues . The concept of permanent establishment is so important that I am going to discuss it in detail.
o The presence of a web site itself is not a permanent establishment
Does a web site or home page have a physical presence of some permanence? The best answer is that website can have its permanent establishment if the operator of site is located in jurisdiction of a state. Either home page or linked pages if the operator of pages residing in a state and performing service not delivery goods the where web site has been hosted can be regarded as permanent establishment e-business for purpose exercising jurisdiction of taxation. A web page is consisted of binary or digital code, and is housed on a magnetic surface in computer disk or hard where which is physical in nature. The binary code is viewable using a computer and a communications device. However, even though we can establish a physical presence, albeit a brand new form, the "establishment " exists on the
As the celebration closed on another New Year, in the quiet calm of an unseasonably warm January 1st afternoon, two online marketers spent a few minutes pondering their achievements in 2006.The two highly motivated, eager marketers were both convinced they would be able to leave their suffocating careers behind and break through into comfortable, exciting lifestyles in the year to come...Yet, the next 12-months would bring astoundingly different results for the two marketers. In fact, when the next New Year celebration is launched, one of the two marketers will hardly be able to believe the good fortune he will see while the other will have edged only slightly closer to his goals.What Led To The Big Difference In Results?Isn't it mysterious what leads one person to quickly capture significant wealth online while another can work and work but doesn't seem to be able to grow their profit?Clearly talent, experience, or special skills don't seem to matter as many of these online millionaires are from completely different backgrounds with substantial differences in talent and skill levels.Frankly, it just doesn't seem to matter - so what does account for astonishingly different results?Fortunately, we can learn from the second marketer in this story how to build a substantial six or seven-figure business online, you may be shocked to know what made the biggest difference.4 ONLINE MARKETING BIG-INCOME FACTORSPlan For Success.Our highest paid marketer learned the benefit of planning in his job as a technology worker from a savvy manager who worked his way up the corporate ladder over a period of 10-years. With his end-goal clearly defined, each step along the way led to fo
o The presence of a web site itself is not a permanent establishment
Does a web site or home page have a physical presence of some permanence? The best answer is that website can have its permanent establishment if the operator of site is located in jurisdiction of a state. Either home page or linked pages if the operator of pages residing in a state and performing service not delivery goods the where web site has been hosted can be regarded as permanent establishment e-business for purpose exercising jurisdiction of taxation. A web page is consisted of binary or digital code, and is housed on a magnetic surface in computer disk or hard where which is physical in nature. The binary code is viewable using a computer and a communications device. However, even though we can establish a physical presence, albeit a brand new form, the "establishment " exists on the
There will come a time on every change project that you will wish you had read this article. The size and scope of the work does matter. Everyone today, especially in the larger organizations, wants to forecast heroism. By that I mean they want to think that because they are who they are, or the organization is who it is you will then be able to do anything. Don’t make that mistake.When setting up any change project, and remember all project work is change work, there are three parts you must balance to succeed. They are …1. Scope 2. Resources 3. TimeThese three elements form a triangle and must have equal sides. That means the length of each side must remain relatively the same throughout the project. Let’s address each individually then we’ll tie them together as a whole.Scope:The scope of the work defines the boundaries of what you will work to change. The scope is your vision of the project. Are you going to change the processes of just accounts payable or are you going to reach out into other areas as you progress. You must carefully define the scope of the work in order to move to the next side of the change triangle and that is defining the resources.Resources:The resources of your change effort are the people, outside support, in some cases materials and most of all the finances, the money required to bring about the changes desired. Here is where we find the forecasting of heroism most common. Many leaders confuse sound planning with being macho. If you are the change leader don’t accept the assignment without a realistic resource plan or you are doomed to failure. The gun that will eventually shoot you for failing is already aimed at you at this point. You must take t
The viewer of a web site feel as web site has no actual physical presence and it is existed in cyberspace and, viewer can only feel the presence of the website on his computer and its contents. Presence of employees in country is not essential condition maintenance of the site. The order function of web site or electronic media is same as comparison with ordering done through catalog or a television advertisement, "infomercial" or home shopping channel. It can not be established under present statute that mere extension of interpretation of tax provisions does not create a permanent establishment under existing principles, and it should not when effectuated through electronic commerce.
The way the contents are displayed for mailing or online ordering, the ultimate purpose of these are providing facilitation to customers so that view stock or data are made viewable to them. The web site is analogous to a location being maintained solely for the purposes of displaying the contents of goods and services offered for sale or performance. Moreover, contention of fact for evolving the principal of jurisdiction for purposes of imposition of taxation and proposed construction of status can not accepted as basic principles of electronic commerce jurisdiction on a server only temporarily should not be a permanent establishment.
o The presence of a server should not Regarded as a permanent establishment
I recommend further clarification that, under above mentioned principles, the presence of a web site alone in a country, without more, is not in itself a sufficiently "fixed place of business" to constitute a permanent establishment for purposes of defining the tax jurisdiction. Moreover, the principles of permanent establishment the existing tax laws conducted by modern states consistently look to the locations of purchaser, employees or dependent agents who are engaged in business transaction in a country as source of imposition of taxation mere presence of server at some location can be regarded ground sufficient for doing that. The negation of fact that presence of personal or employee at some location can not be regarded principle for imposition of taxation. Thus, even if the presence of a piece of equipment such as a server were sufficient to constitute a fixed place of business, the determination of permanent establishment must look beyond the mere presence of the server to the presence of personnel, the functions they perform using the server, and the nature of the activities for which it is used, and other indicated that the business of an enterprise is being conducted through a permanent establishment in the country. Where such activities or functions of computer server are of a discretionary in nature, the server should not constitute a permanent establishment. For example, the database hosted at remote server also should not be deemed a permanent establishment b
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