Thursday, August 22, 2013
Wednesday, August 21, 2013
David J. Shakow, University of Pennsylvania Law School, has published The Taxation of Cloud Computing and Digital Content in volume 71 of Tax Notes International (July 22, 2013), volume 140 of Tax Notes (July 22, 2013), and volume 69 of State Tax Notes (July 22, 2013). Here is the abstract.
"Cloud computing” raises important and difficult questions in state tax law, and for Federal taxes, particularly in the foreign tax area. As cloud computing solutions are adopted by businesses, items we view as tangible are transformed into digital products. In this article, I will describe the problems cloud computing poses for tax systems. I will show how current law is applied to cloud computing and will identify the difficulties current approaches face as they are applied to this developing technology.
My primary interest is how Federal tax law applies to cloud computing, particularly as the new technology affects international transactions. I am not so interested in the current state of the law as I am in identifying the problems confronting tax administrators as technology creates a changed economic system. After identifying the problems, I will suggest that cloud computing (like other technological changes) is not always compatible with current rules for taxing activities in multiple jurisdictions. Therefore, tax fairness may require that new standards be used to allocate income among jurisdictions.
But beyond that, I hope to explain some of the particulars of the cloud structure. In doing so, it will become apparent that the significance of cloud computing goes beyond the local and international tax areas that have been identified as problem areas in the past.
Download the article from SSRN at the link.
Tuesday, August 20, 2013
Monday, August 19, 2013
The Guardian is reporting that journalist Glenn Greenwald's partner, David Miranda, was detained at Heathrow Airport for nine hours under the UK's Terrorism Act. Mr. Miranda was enroute to Brazil. UK authorities seized his laptop and other electronic items but eventually allowed him to resume his travels. Mr. Greenwald is the reporter who broke the Edward Snowden story about NSA surveillance in June. Mr. Greenwald wrote an angry column about the interrogation here for the Guardian and British MP Keith Vaz says he will ask for an explanation of the incident from authorities. News of Mr. Miranda's detention has spread quickly: see coverage from MSN here and the News.com (Australia) here.