This document discusses several offshore destinations for e-commerce including India, Ireland, Switzerland, Singapore, Hong Kong, Mauritius, Cyprus, Malta, Isle of Man, Bermuda, Gibraltar, and Malaysia. It notes popular attributes like skilled labor costs, tax incentives, government support, and regulatory frameworks. Specific places like Hong Kong, Bermuda, Isle of Man, and Cyprus are discussed in more detail regarding their telecommunications infrastructure, legal/regulatory issues, and available internet/banking services for e-commerce.
Digital Signatures: The Law and Best Practices for ComplianceCoSign by ARX
The CoSign Digital Signature solution automates your signature-based approvals compliantly and affordably, allowing you to cut costs and automate business processes.
MA 201 CMR 17.00 is the new Massachusetts regulation requiring everyone who accesses / stores personal identity information (credit card, SSN, etc.) to safeguard the information by March 1, 2010. Learn how.
Digital Signatures: The Law and Best Practices for ComplianceCoSign by ARX
The CoSign Digital Signature solution automates your signature-based approvals compliantly and affordably, allowing you to cut costs and automate business processes.
MA 201 CMR 17.00 is the new Massachusetts regulation requiring everyone who accesses / stores personal identity information (credit card, SSN, etc.) to safeguard the information by March 1, 2010. Learn how.
"Hollande et BHL autour d'un repas gastronomique à 262 €." selon Midi Libre, encore un exemple de la Gauche caviar...
Hollande, celui qui affirmait hier ne pas aimer "les riches",.. ne crache pas dans la soupe et au dessus des tarifs du Fouquet's !!
http://www.leparisien.fr/election-presidentielle-2012/candidats/hollande-a-dejeune-avec-bhl-31-01-2012-1838934.php
Chômage des députés: 2 poids, 2 mesures
des mesures de faveur "auto-votées" par la Droite-Gauche unies pour maintenir leurs privilèges à l'heure où les Français se serrent la ceinture...
Les Députés - Sénateurs repus qui peinent à voter une Loi sur le non-cumul des mandats
Chaque député Français coûte 978 000 euros par an aux contribuables
La démocratie a un prix : Les 577 députés qui vont être élus les 10 et 17 juin disposeront d'un budget annuel de 564 millions d'euros pour exercer leur mandat. Soit 978 000 euros par député à l’Assemblée nationale en 2012
Sur le budget de l'Assemblée, les indemnités des députés proprement dites ne représentent que 50 millions d'euros auxquels il convient cependant d'ajouter 61 millions pour leurs charges sociales payées par l'Etat. A cela s'ajoutent 45 millions de frais de mandat accordés à chaque député, soit plus de 6000 euros par mois.
L'Assemblée rembourse également sept millions par an à l'ensemble des élus pour leurs frais de voyage. Elle prend aussi en charge 3,3 millions de dépenses téléphoniques engagées par les parlementaires.
Les frais de secrétariat des députés (qui peuvent recruter quatre collaborateurs) atteignent 106 millions d'euros plus 10 millions pour les frais supportés par les groupes parlementaires.
1351 agents au Palais Bourbon
Pour les épauler dans leur mission, les députés peuvent compter sur les 1351 fonctionnaires du Palais Bourbon, soit 2,3 agents pour un député (hors assistants).
Leurs rémunérations et charges sociales s'élèvent à 170 millions d'euros, dont 49 millions pour les primes liées aux "travaux supplémentaires", essentiellement les séances de nuit.
Think You’re Covered? Think Again: Cybersecurity, Data Privacy, and Cyber Ins...Withum
Whether you are considering cyber insurance, shopping for a policy, and/or have been recently impacted by a cyberattack there are various considerations prior to and post attack.
In a brief webinar presentation, Trade Risk Guaranty explains how the new Section 232 and Section 301 tariffs can impact the bond sufficiency of your U.S. Customs Bond. The presentation covers the following:
- What is Bond Sufficiency?
- How the Tariffs Impact Bond Sufficiency
- What Happens When your Customs Bond is Insufficient?
- What is Stacking Liability on a Customs Bond?
DOWNLOAD THE HTSUS LOOKUP : https://traderiskguaranty.com/section-301-tariff-htsus-lookup/
Watch the webinar here: https://youtu.be/y91qQS1qyHE
"Hollande et BHL autour d'un repas gastronomique à 262 €." selon Midi Libre, encore un exemple de la Gauche caviar...
Hollande, celui qui affirmait hier ne pas aimer "les riches",.. ne crache pas dans la soupe et au dessus des tarifs du Fouquet's !!
http://www.leparisien.fr/election-presidentielle-2012/candidats/hollande-a-dejeune-avec-bhl-31-01-2012-1838934.php
Chômage des députés: 2 poids, 2 mesures
des mesures de faveur "auto-votées" par la Droite-Gauche unies pour maintenir leurs privilèges à l'heure où les Français se serrent la ceinture...
Les Députés - Sénateurs repus qui peinent à voter une Loi sur le non-cumul des mandats
Chaque député Français coûte 978 000 euros par an aux contribuables
La démocratie a un prix : Les 577 députés qui vont être élus les 10 et 17 juin disposeront d'un budget annuel de 564 millions d'euros pour exercer leur mandat. Soit 978 000 euros par député à l’Assemblée nationale en 2012
Sur le budget de l'Assemblée, les indemnités des députés proprement dites ne représentent que 50 millions d'euros auxquels il convient cependant d'ajouter 61 millions pour leurs charges sociales payées par l'Etat. A cela s'ajoutent 45 millions de frais de mandat accordés à chaque député, soit plus de 6000 euros par mois.
L'Assemblée rembourse également sept millions par an à l'ensemble des élus pour leurs frais de voyage. Elle prend aussi en charge 3,3 millions de dépenses téléphoniques engagées par les parlementaires.
Les frais de secrétariat des députés (qui peuvent recruter quatre collaborateurs) atteignent 106 millions d'euros plus 10 millions pour les frais supportés par les groupes parlementaires.
1351 agents au Palais Bourbon
Pour les épauler dans leur mission, les députés peuvent compter sur les 1351 fonctionnaires du Palais Bourbon, soit 2,3 agents pour un député (hors assistants).
Leurs rémunérations et charges sociales s'élèvent à 170 millions d'euros, dont 49 millions pour les primes liées aux "travaux supplémentaires", essentiellement les séances de nuit.
Think You’re Covered? Think Again: Cybersecurity, Data Privacy, and Cyber Ins...Withum
Whether you are considering cyber insurance, shopping for a policy, and/or have been recently impacted by a cyberattack there are various considerations prior to and post attack.
In a brief webinar presentation, Trade Risk Guaranty explains how the new Section 232 and Section 301 tariffs can impact the bond sufficiency of your U.S. Customs Bond. The presentation covers the following:
- What is Bond Sufficiency?
- How the Tariffs Impact Bond Sufficiency
- What Happens When your Customs Bond is Insufficient?
- What is Stacking Liability on a Customs Bond?
DOWNLOAD THE HTSUS LOOKUP : https://traderiskguaranty.com/section-301-tariff-htsus-lookup/
Watch the webinar here: https://youtu.be/y91qQS1qyHE
New Challenges on the TA Compliance LandscapeNICSA
Join NICSA’s panel of experts as we discuss what it takes for transfer agents to stay compliant with GDPR regulations, elder abuse prevention best practices, and other top of mind compliance issues. Take a guided tour of the NICSA Transfer Agent Compliance Guide, an essential resource available to NICSA members for understanding and responding to industry and regulatory challenges. Subject matter experts will review what’s new for 2019 and discuss what the future may hold for the regulatory landscape.
Vskills certification for Cyber Law Analyst assesses the candidate as per the company’s need for securing against internet related offenses. The certification tests the candidates on various areas in electronic signature, UNCITRAL, attribution, acknowledgement and dispatch of electronic records, certifying authority, IPR protection, international organization, COE, IT Act and judicial review.
An Introduction to the Legal Aspects of Investing and Establishing a Business in Canada. Borden Ladner Gervais LLP (BLG), a leading full-service, Canadian law firm, is driven to help achieve the best possible results for all our clients. BLG’s more than 750 lawyers, intellectual property agents and other legal professionals in five offices provide corporate, litigation and arbitration, as well as intellectual property solutions to a wide range of clients nationally and internationally,.
International Business Transaction - Exporting and Importing: The Documentary...Mariske Myeke Tampi
This slides are about a review of the different methods of payment utilized in the sale of goods. It will then focus on the most common method of payment in international transactions ---the documentary collections transaction.
Every small business, regardless of size or industry needs a solid records management system to comply with federal, state and local regulations.
Having these recordkeeping practices in place establishes your business as a trustworthy organization that clients and vendors can feel comfortable doing business with.
Presentation by Professor William H Byrnes to the Florida Bar Association annual meeting on India's Legal Process Outsourcing industry.
1. Economics and Other Driving Factors
2. Bar Ethics
3. Risk Management
4. Tax Issues
5. Education & Training the LPO Workforce
See http://www.profwilliambyrnes.com
The countries of the world, pushed by a U.S. Treasury promotional campaign, have inevitably capitulated to the U.S. unilateral demand for information although the per-country compliance cost may exceed one billion dollars and privacy protection laws must be amended. However, push back by important U.S. trading partners resulted in the U.S. Treasury entering into an expanding network of bi-lateral intergovernmental agreements that in most instances provide for automatic exchange between the competent authorities of the required financial information to fulfill FATCA compliance. These agreements may lead to an imposition of FATCA reporting compliance, though to a lesser extent, upon U.S. financial institutions, that the U.S. Treasury may in turn provide automatically to the foreign competent authority.
FATCA should not be observed in a historical vacuum but instead requires at least an understanding of the U.S. previous attempt to collect such information under the qualified intermediary (‘QI’) regime. Moreover, FATCA should not be observed in a unilateral vacuum but instead requires an overview of the EU and OECD information exchange initiatives and challenges thereto, tax collection and remission alternatives, as well as an overview of the spawn of FATCA (e.g. the UK’s son-of-FATCA approach).
This discussion will also explore the general nature, issues, and challenges of information collection and exchange. During this discussion we will digress into the topic of the information of a business’ financials and of its operations, the topic of domestic and cross border asymmetry of information, as well as the dialogue for global harmonization of information (such as standardization of accounts and of tax base determination), and for exchange of such information. Such conversation is necessary for a robust understanding of the topics of base erosion and the efforts of countries to control ‘transfer pricing’. See the news story at http://profwilliambyrnes.com/2014/01/22/professor-byrnes-lectures-for-university-of-amsterdams-international-tax-program/
FATCA Compliance Program and Manual
The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 600 pages of analysis in 34 Chapters grouped into three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of FATCA’s application for certain trading partners of the U.S. (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems. The 34 chapters include many practical examples for use by the FATCA compliance officer. http://www.lexisnexis.com/store/catalog/booktemplate/productdetail.jsp?pageName=relatedProducts&prodId=prod19190327&ORIGINATION_CODE=00247
Professor William Byrnes' powerpoint for the Regulatory Impact Analysis lectures in the Law & Economics course. Study the materials beforehand as class will only be a facilitated discussion of regulatory case studies and policy initiatives
CAPES distance education best practices November 2012William Byrnes
Expanding the universe of perspectives for the lawyer’s toolkit through exposure to foreign legal concepts and foreign legal solutions allows an expanded frame for creative problem solving of local issues, legal pedagogy, distance education
trade & investment among countries in general, and Brazil USA specifically creates legal and economic overlap (See draft Cross-Border Tax Syllabus attached)
"Diverse groups of problems solvers
– groups of people with diverse tools –
consistently outperform groups of the best & the brightest”
Global OFC trends: past & present
Economic and Social Economic Impact of Offshore Financial Services
Forecasting future OFC and its services
Challenges to OFCs
Global Initiatives that Impact OFCs
EU Initiatives
Domestic UK, US, Italian, other Initiatives
Typologies in general examined -
Securities
Trade Based
Counterfeit Trade
Sports Clubs (and Equestrian)
Child Pornography & Human Trafficking
Government Contracting / Bribery / PEPs
Internet Based Market Systems
Currency Demand Approach
Pricing Approach
Multiple Indicators Multiple Solutions (MIMIC)
Measurement of Crimes Model
Newton’s Law of Gravity applied to ML
Regulatory Impact Analysis - Law & Economics courseWilliam Byrnes
Regulatory Impact Analysis - Law & Economics course
Effective regulation is regulation that achieves the policy objective that led to it being made.
Efficient regulation achieves these objectives at the lowest total cost to all members of society
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
1. BRIEF LOOK AT ABRIEF LOOK AT A
FEW OFFSHOREFEW OFFSHORE
ECOMMERCE ISSUESECOMMERCE ISSUES
Bangalore Chartered AccountantsBangalore Chartered Accountants
December 8, 2003December 8, 2003
Professor William H. Byrnes, IVProfessor William H. Byrnes, IV
2. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Popular Offshore DestinationsPopular Offshore Destinations
IndiaIndia – skilled labor costs, export incentives– skilled labor costs, export incentives
IrelandIreland – gov’t directed, low tax, stable, work– gov’t directed, low tax, stable, work
quality, DTAs, EU VAT, Euroquality, DTAs, EU VAT, Euro
SwitzerlandSwitzerland – govt. directed, low ETR, work– govt. directed, low ETR, work
quality, stable, DTAsquality, stable, DTAs
SingaporeSingapore – tax incentives, work quality, gov’t– tax incentives, work quality, gov’t
directed, some DTAsdirected, some DTAs
Hong KongHong Kong – low tax, law, proximity, K mkts– low tax, law, proximity, K mkts
3. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
More Recent Offshore (>1998)More Recent Offshore (>1998)
MauritiusMauritius – low ETR, DTAs, labor cost– low ETR, DTAs, labor cost
CyprusCyprus – low tax, DTAs, EU (2004)– low tax, DTAs, EU (2004)
MaltaMalta – low ETR, DTAs, EU (2004)– low ETR, DTAs, EU (2004)
Isle of ManIsle of Man – low tax, likely no tax, EU VAT– low tax, likely no tax, EU VAT
BermudaBermuda – no tax– no tax
GibraltarGibraltar – Spanish life, English work, no tax– Spanish life, English work, no tax
MalaysiaMalaysia – gov’t directed, labor costs, tax– gov’t directed, labor costs, tax
incentivesincentives
5. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Regulatory & Legal IssuesRegulatory & Legal Issues
Regulatory bodiesRegulatory bodies
E-commerce enablingE-commerce enabling
legislation (e.g. e-contracts)legislation (e.g. e-contracts)
Stable & Robust legal systemStable & Robust legal system
Recognition of judgmentsRecognition of judgments
6. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Operational Capability & CostsOperational Capability & Costs
Technical laborTechnical labor
– server banks in Singapore / India / Costa Ricaserver banks in Singapore / India / Costa Rica
Telecommunications & CostsTelecommunications & Costs
– Bermuda v. JamaicaBermuda v. Jamaica
General offshore business issuesGeneral offshore business issues
– Audit & Compliance?Audit & Compliance?
– Environment?Environment?
– Stability?Stability?
7. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Hong Kong E-commHong Kong E-comm
Government InitiativesGovernment Initiatives
Electronic service deliveryElectronic service delivery
program (ESD)program (ESD)
Delivery of government services onlineDelivery of government services online
Digital 21Digital 21
Comprehensive strategy to enhance and promoteComprehensive strategy to enhance and promote
Hong Kong’s information infrastructure andHong Kong’s information infrastructure and
servicesservices
8. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Hong Kong’s E-TransactionHong Kong’s E-Transaction
Ordin. (2000)Ordin. (2000)
Authorizes the use of electronic and digitalAuthorizes the use of electronic and digital
signaturessignatures
Confers legal validity to electronic recordsConfers legal validity to electronic records
Delineates the requirements for theDelineates the requirements for the
formation of electronic contractsformation of electronic contracts
Establishes regulations for the licensing ofEstablishes regulations for the licensing of
certification authoritiescertification authorities
9. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
HK’s E-Transaction Ord. (2000)HK’s E-Transaction Ord. (2000)
Main exception.Main exception.
•• Certain generic items such as wills,Certain generic items such as wills,
trust, statutory declarations, affidavits,trust, statutory declarations, affidavits,
power of attorney, court orders, warrant, billspower of attorney, court orders, warrant, bills
of exchange, documents or instrumentsof exchange, documents or instruments
concerning land or property transactions,concerning land or property transactions,
etc. Are exempt from the operation of theetc. Are exempt from the operation of the
relevant provisions in the proposedrelevant provisions in the proposed
legislation.legislation.
10. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
HKMA Internet Banking ProposalHKMA Internet Banking Proposal
Local online bank - 50 per cent owned by aLocal online bank - 50 per cent owned by a
well-established bank or other supervisedwell-established bank or other supervised
financial institutionfinancial institution
appropriate experienceappropriate experience
Foreign online bank – US$16B groupForeign online bank – US$16B group
minimum &minimum &
Established foreign e-bank regsEstablished foreign e-bank regs
11. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
BermudaBermuda
E-business facilities.E-business facilities.
• Systems Resource GroupSystems Resource Group
• Emagine Ltda.Emagine Ltda.
• Secure Hosting LimitedSecure Hosting Limited
12. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
BermudaBermuda
Telecommunication infrastructureTelecommunication infrastructure
*Government privatized the*Government privatized the
telecommunication servicetelecommunication service
*Public utility commission (PUC) is the*Public utility commission (PUC) is the
regulatory agencyregulatory agency
13. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
BermudaBermuda
Telecommunication infrastructureTelecommunication infrastructure
• Internet license fees reduced fromInternet license fees reduced from
$10,000 to $2,600$10,000 to $2,600
• Paging licenses fees reducedPaging licenses fees reduced
from $5,000 to $1,300from $5,000 to $1,300
14. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
BermudaBermuda
Telecommunication infrastructureTelecommunication infrastructure
• Internet service cost reduced fromInternet service cost reduced from
US$100 a month to $US20 aUS$100 a month to $US20 a
monthmonth
• Business packages reduced fromBusiness packages reduced from
US$150 a month to US$35 aUS$150 a month to US$35 a
monthmonth
15. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
BermudaBermuda
E-COMMERCE LEGAL FRAMEWORKE-COMMERCE LEGAL FRAMEWORK
• The ElectronicThe Electronic
Communication andCommunication and
Transaction BillTransaction Bill
• The Misuse of Computer BillThe Misuse of Computer Bill
• Data Protection BillData Protection Bill
16. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
BermudaBermuda
The electronic communicationThe electronic communication
and transaction billand transaction bill
**Recognizes electronic messages,Recognizes electronic messages,
signatures, writings and contracts.signatures, writings and contracts.
**Exemptions: disposition of property,Exemptions: disposition of property,
testamentary dispositions, negotiabletestamentary dispositions, negotiable
instruments, enduring powers ofinstruments, enduring powers of
attorney and court documents.attorney and court documents.
17. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
BermudaBermuda
Misuse of computer billMisuse of computer bill
Creates a series of offences arisingCreates a series of offences arising
out of the unlawful interferenceout of the unlawful interference
with computers and computerwith computers and computer
systemssystems based on thebased on the EU CouncilEU Council
and the OECDand the OECD
18. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
BermudaBermuda
Data protection billData protection bill
Implements privacy principlesImplements privacy principles
established by the OECD underestablished by the OECD under
its guidelines that protect theits guidelines that protect the
privacy and transferred flows ofprivacy and transferred flows of
personal data.personal data.
19. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
BermudaBermuda
BankingBanking
Foreign banks are not permitted to operateForeign banks are not permitted to operate
in Bermuda. The BMA supervises thein Bermuda. The BMA supervises the
three Bermudian banks, which operate athree Bermudian banks, which operate a
joint clearing system. The threejoint clearing system. The three
Bermudian banks have subsidiaries in theBermudian banks have subsidiaries in the
major financial centers.major financial centers.
20. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
BermudaBermuda
Payment processing facilitiesPayment processing facilities
*Two local banks have entered partnership*Two local banks have entered partnership
to set up international payment processingto set up international payment processing
solutionssolutions
*Local hosting services utilizing software*Local hosting services utilizing software
and systems provide internet paymentand systems provide internet payment
services as wellservices as well
21. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Isle Of ManIsle Of Man
E-commerce legal frameworkE-commerce legal framework
E-transactions regulations of 2000E-transactions regulations of 2000
Computer security act of 1992Computer security act of 1992
Data protection act of 1986Data protection act of 1986
Online gambling regulation actOnline gambling regulation act
Fair trading amendment billFair trading amendment bill
22. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Isle Of ManIsle Of Man
The e-transaction act , 2000 excludesThe e-transaction act , 2000 excludes
MarriagesMarriages
A testamentary dispositionA testamentary disposition
Power of attorneyPower of attorney
A conveyance or creation of an interest inA conveyance or creation of an interest in
landland
A mortgageA mortgage
Transfer or mortgage of ship interestTransfer or mortgage of ship interest
23. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Isle Of ManIsle Of Man
(Online) Fair trading bill(Online) Fair trading bill
consumer protection act: unfair contractconsumer protection act: unfair contract
terms in consumer contracts, and rulesterms in consumer contracts, and rules
regarding distance sales, includingregarding distance sales, including
information to be given to consumer, rightinformation to be given to consumer, right
to cancel, return of goods, andto cancel, return of goods, and
performance of contracts.performance of contracts.
24. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Isle Of ManIsle Of Man
Internet service providers.Internet service providers.
Domicilium Ltda.Domicilium Ltda.
Mannet.Mannet.
Manx telecom.Manx telecom.
XKO (IOM) limited.XKO (IOM) limited.
25. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
CYPRUSCYPRUS
Telecommunication infrastructureTelecommunication infrastructure
Cyprus Telecom Authority (CYTA)Cyprus Telecom Authority (CYTA)
virtually all-digital local networkvirtually all-digital local network
satellite telecom networksatellite telecom network
fiber optic submarine cable systemfiber optic submarine cable system
26. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
CYPRUSCYPRUS
Telecommunication infrastructureTelecommunication infrastructure
CYTA provides variety of advancedCYTA provides variety of advanced
telecommunications services, covering thetelecommunications services, covering the
whole spectrum of customer needs forwhole spectrum of customer needs for
both voice and data communications, bothboth voice and data communications, both
fixed and mobile.fixed and mobile.
27. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
CYPRUSCYPRUS
Telecommunication infrastructure.Telecommunication infrastructure.
A new telecommunication regulator hasA new telecommunication regulator has
been appointed by liberalizationbeen appointed by liberalization
legislation but has not been affectivelegislation but has not been affective
yet.yet.
28. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
CYPRUSCYPRUS
Telecommunication InfrastructureTelecommunication Infrastructure
Functions of new regulator:Functions of new regulator:
*granting new telecom and postal*granting new telecom and postal
licenseslicenses
**authorizing telecommunicationsauthorizing telecommunications
networks & servicesnetworks & services
29. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
CYPRUSCYPRUS
ISP and hosting services.ISP and hosting services.
*Sofocleous and co.*Sofocleous and co.
* Armata.* Armata.
*CTC Infocom.*CTC Infocom.
* Cyprus on line, Cyprus* Cyprus on line, Cyprus
*telecommunications authority*telecommunications authority
*Spidernet.*Spidernet.
30. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
CYPRUSCYPRUS
Online banking.Online banking.
Laiki eBankLaiki eBank, launched by Laiki bank in September, launched by Laiki bank in September
2000, was the first electronic bank in Cyprus to2000, was the first electronic bank in Cyprus to
allow banking and stock market transactions viaallow banking and stock market transactions via
the internet. Laiki eBank customers are able tothe internet. Laiki eBank customers are able to
trade securities on the CSE, track developmentstrade securities on the CSE, track developments
on the CSE and have a live update of theiron the CSE and have a live update of their
portfolio.portfolio.
31. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
CYPRUSCYPRUS
Online banking.Online banking.
Spidernet has developed SpidertradeSpidernet has developed Spidertrade
(http://www.spidertrade.Com.Cy), an interactive(http://www.spidertrade.Com.Cy), an interactive
online service providing the latest financial news,online service providing the latest financial news,
real-time quotes from the Cyprus stockreal-time quotes from the Cyprus stock
exchange (CSE) and on-line trading services. Atexchange (CSE) and on-line trading services. At
the same time SpiderNet offers free to itsthe same time SpiderNet offers free to its
subscribers the SpiderWAP service.subscribers the SpiderWAP service.
32. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Major Tax Issues:Major Tax Issues:
Home jurisdiction tax ratesHome jurisdiction tax rates
– Tax credits for tax paid to source stateTax credits for tax paid to source state
– DTA protection from source withholding / PEDTA protection from source withholding / PE
– Characterize incomeCharacterize income
Business / Service / License / Capital GainBusiness / Service / License / Capital Gain
Source stateSource state
– Characterize incomeCharacterize income
– CT on ECI, trade within, PECT on ECI, trade within, PE
– WHT on license, services, branch profitsWHT on license, services, branch profits
33. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Jurisdiction to Tax CompanyJurisdiction to Tax Company
domiciliary:domiciliary: incorporation and / or effectiveincorporation and / or effective
management and / or real seatmanagement and / or real seat
sourcesource: items of income or capital that arise in: items of income or capital that arise in
the statethe state
– for business or professional services income:for business or professional services income:
permanent establishment or fixed base ofpermanent establishment or fixed base of
businessbusiness
– for capital income: dividend, interests,for capital income: dividend, interests,
royaltiesroyalties
anti-deferral legislation (i.e. C.F.C.)anti-deferral legislation (i.e. C.F.C.)
34. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Mauritius TaxMauritius Tax
Previously companies chose own rate of
tax (0%) but as of 10.07.98 companies
taxed @ 15%.
Credit of 90% of tax paid (13.5%)
available so effective rate of 1.5%.
As of 01.07.01 only 80% credit allowed so
effective rate is 3%.
Several DTAs (India, China, Indonesia)
35. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
MaltaMalta
EU member (2004)
headline rate of 35% tax
Complex tax credit system to relieve
double taxation =
– Int’l Trading Company (ITC) – ERT 4%
– Int’l Holding Company (IHC) – ERT 6%
36. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Role of the OECD ModelRole of the OECD Model
ConventionConvention
Tax Treaties entered into bilaterally by StatesTax Treaties entered into bilaterally by States
are mostly based upon OECD Model, some UNare mostly based upon OECD Model, some UN
Model.Model.
US ModelUS Model
Also OECD Reports on E-commAlso OECD Reports on E-comm
See www.oecd.orgSee www.oecd.org
37. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Source and CharacterizationSource and Characterization
Blurring of geographical categories:Blurring of geographical categories:
Where income arises?Where income arises?
e.g. if a non resident company generates income through a sale arisinge.g. if a non resident company generates income through a sale arising
out of a web page that is accessed in another country, what is theout of a web page that is accessed in another country, what is the
source of the sale income?source of the sale income?
Blurring of income categories:Blurring of income categories:
What kind of income is it?What kind of income is it?
e.g. a download of digitalised product from a foreign web site:e.g. a download of digitalised product from a foreign web site:
states may consider such payments as per:states may consider such payments as per:
Royalty, Business Profit, Services or Intangible assetRoyalty, Business Profit, Services or Intangible asset
38. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
place of effective managementplace of effective management
Limitations in a modern, technologically advancedLimitations in a modern, technologically advanced
environment:environment:
Problems presented:Problems presented:
a net centric company (i.e. a company that does not have any office, wherea net centric company (i.e. a company that does not have any office, where
managers and employee are located across several states and it ismanagers and employee are located across several states and it is
organised on intranet in leasing): what state has residence based taxorganised on intranet in leasing): what state has residence based tax
authority over the income that net company generates?authority over the income that net company generates?
Use of modern networks, videoconferencing or otherUse of modern networks, videoconferencing or other
electronic discussion group applications can transform aelectronic discussion group applications can transform a
company into a net centric company, where directors orcompany into a net centric company, where directors or
key managers do not need to be fiscally located in anykey managers do not need to be fiscally located in any
place to make decisions and mobile decisions may beplace to make decisions and mobile decisions may be
the rule.the rule.
39. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Article 5: PermanentArticle 5: Permanent
EstablishmentEstablishment
According to article 5 OECD MC a PEAccording to article 5 OECD MC a PE
means a “fixed place of businessmeans a “fixed place of business
through which the business of anthrough which the business of an
enterprise is wholly or partly carriedenterprise is wholly or partly carried
on”on”
How does it apply in the context ofHow does it apply in the context of
electronic commerce?electronic commerce?
40. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Source jurisdiction in e-Source jurisdiction in e-
commerce: Permanentcommerce: Permanent
EstablishmentEstablishment
There are two types of P.E. that are relevantThere are two types of P.E. that are relevant
in the e-commerce context:in the e-commerce context:
a physical permanent establishmenta physical permanent establishment
an agency permanent establishmentan agency permanent establishment
41. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Source jurisdiction in e-Source jurisdiction in e-
commerce: Permanentcommerce: Permanent
EstablishmentEstablishment
where the activity is carried onwhere the activity is carried on
The business carried on through the PE needs to be ‘The business carried on through the PE needs to be ‘
core business activity’ and not meant as havingcore business activity’ and not meant as having
preparatory or auxiliary character.preparatory or auxiliary character.
The activity need not necessarily be performed by aThe activity need not necessarily be performed by a
human being.human being.
42. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Application of physical P.E.Application of physical P.E.
concept to a serverconcept to a server
Consider a R Corp. established in State R having its ownConsider a R Corp. established in State R having its own
server in country S.server in country S.
The serverThe server maymay constitute a P.E. for R Corp in S,constitute a P.E. for R Corp in S,
especially if its own employee operates and maintainespecially if its own employee operates and maintain
the server for its own account, even if they operatethe server for its own account, even if they operate
remotely and are not physically present on S territory.remotely and are not physically present on S territory.
However if the server functioned solely for the purpose ofHowever if the server functioned solely for the purpose of
display, storage or delivery of goods or services,display, storage or delivery of goods or services, itit
may notmay not qualify as PE since its activities would onlyqualify as PE since its activities would only
be of having auxiliary character.be of having auxiliary character.
43. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Permanent EstablishmentPermanent Establishment
AT OECD level consensusAT OECD level consensus
A web site cannot, in itself, constitute aA web site cannot, in itself, constitute a
permanent establishment since there ispermanent establishment since there is
any ‘place of business’ there.any ‘place of business’ there.
An ISP does not constitute a dependentAn ISP does not constitute a dependent
agent of another enterprise and thereforeagent of another enterprise and therefore
does not represent a PE for that otherdoes not represent a PE for that other
enterpriseenterprise
44. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Server as a PE?Server as a PE?
The issue of whether a computer equipment at a givenThe issue of whether a computer equipment at a given
location constitutes a Permanent Establishment willlocation constitutes a Permanent Establishment will
depend on:depend on:
whether the functions performed through thatwhether the functions performed through that
equipment exceed the preparatory or auxiliaryequipment exceed the preparatory or auxiliary
threshold, analysis of case by case;threshold, analysis of case by case;
The server will need to be located at a certain place forThe server will need to be located at a certain place for
a sufficient period of time so as to become ‘fixed’ withina sufficient period of time so as to become ‘fixed’ within
the meaning of article 5 paragraph 1;the meaning of article 5 paragraph 1;
Also on a case by case needs to be evaluated whetherAlso on a case by case needs to be evaluated whether
an enterprise has a computer equipment at its disposalan enterprise has a computer equipment at its disposal
and where business functions of the enterprise areand where business functions of the enterprise are
performed;performed;
45. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Server NOT PEServer NOT PE
At OECD consensus following activities as beingAt OECD consensus following activities as being
preparatory or auxiliary to the activity of the enterprisespreparatory or auxiliary to the activity of the enterprises
and not giving rise to a PE:and not giving rise to a PE:
Providing a communication link between suppliers andProviding a communication link between suppliers and
customerscustomers
Advertising of goods and servicesAdvertising of goods and services
Relaying information through a mirror server for securityRelaying information through a mirror server for security
and efficiency purposes;and efficiency purposes;
Gathering market data for the enterprise;Gathering market data for the enterprise;
Supplying information.Supplying information.
Unless of course the above activities constitute coreUnless of course the above activities constitute core
functions of the enterprise.functions of the enterprise.
46. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Server = PEServer = PE
If the server offers more than auxiliary activities:If the server offers more than auxiliary activities:
sales help,sales help,
contracting,contracting,
payment processing,payment processing,
delivery arrangements,delivery arrangements,
database information retrieval (about the company) etc.database information retrieval (about the company) etc.
R Corp. leases space on a third party’s server in country S,R Corp. leases space on a third party’s server in country S,
since it qualifies as being nevertheless ‘at disposal ‘ ofsince it qualifies as being nevertheless ‘at disposal ‘ of
the enterprise R Corp in state Sthe enterprise R Corp in state S
This last situation, for example may even give rise to theThis last situation, for example may even give rise to the
fact that R Corp may end having a P.E. in S withoutfact that R Corp may end having a P.E. in S without
even knowing iteven knowing it ..
47. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
If Server = PEIf Server = PE
When a server is deemed to constitute aWhen a server is deemed to constitute a
P.E. of R Corp. in state S, all the incomeP.E. of R Corp. in state S, all the income
that is attributable to it shall be subject tothat is attributable to it shall be subject to
tax in State S.tax in State S.
Business Profits in particular, may beBusiness Profits in particular, may be
subject to tax in the source state only andsubject to tax in the source state only and
to the extent there is a PE in that state.to the extent there is a PE in that state.
48. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Characterization 1Characterization 1
Electronic order processing ofElectronic order processing of
tangible productstangible products
Definition:Definition:
The customer selects an item from an onlineThe customer selects an item from an online
catalogue of tangible goods and orders the itemcatalogue of tangible goods and orders the item
electronically.electronically.
The products are physically delivered to theThe products are physically delivered to the
customer by a common carriercustomer by a common carrier
AnalysisAnalysis : clearly falls within art.7 Business Profits: clearly falls within art.7 Business Profits
49. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Case 2Case 2
Electronic ordering andElectronic ordering and
downloading of digital productsdownloading of digital products
Definition:Definition: The digital product is downloaded ontoThe digital product is downloaded onto
the customer’s hard disk or other non-temporarythe customer’s hard disk or other non-temporary
mediamedia
Analysis:Analysis: majority of OECD countries = Bus Profitsmajority of OECD countries = Bus Profits
Some countries that may qualify this payment asSome countries that may qualify this payment as
Royalty (art.12) thus WHT because downloadingRoyalty (art.12) thus WHT because downloading
= use of copyright.= use of copyright.
50. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Case 3Case 3
Up-dates and add-onsUp-dates and add-ons
Definition:Definition:
The provider of a software or other digital productThe provider of a software or other digital product
agrees to provide the customer with updates andagrees to provide the customer with updates and
add-ons to the product.add-ons to the product.
AnalysisAnalysis
Payments arising from this kind of transactionsPayments arising from this kind of transactions
qualify in the majority of cases as Businessqualify in the majority of cases as Business
Profits (Art. 7)Profits (Art. 7)
51. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Case 4Case 4
Single use software or other digitalSingle use software or other digital
productproduct
Definition:Definition:
The customer acquires the right to use the digitalThe customer acquires the right to use the digital
product only one time and it may be eitherproduct only one time and it may be either
downloaded or used remotely (e-book).downloaded or used remotely (e-book).
AnalysisAnalysis
Payments of this kind may qualify as: Royalties,Payments of this kind may qualify as: Royalties,
Bus Profits or even Services (art. 14)Bus Profits or even Services (art. 14)
52. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Case 5Case 5
Application Hosting -Application Hosting -
Definition:Definition:
A user has a perpetual licence to use a softwareA user has a perpetual licence to use a software
product by entering into a contract with a hostproduct by entering into a contract with a host
entity. The user can access, execute operateentity. The user can access, execute operate
the software applications remotely. E.G.the software applications remotely. E.G.
Financial management, H.R.M. etc.Financial management, H.R.M. etc.
AnalysisAnalysis
Payments arising from this kind of transactionsPayments arising from this kind of transactions
qualify as Bus Profits (art. 7)qualify as Bus Profits (art. 7)
53. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
Case 6Case 6
Technical informationTechnical information
Definition:Definition:
The customer is provide with undivulged technicalThe customer is provide with undivulged technical
information concerning a product or process.information concerning a product or process.
AnalysisAnalysis
Payments arising from this kind of transactionsPayments arising from this kind of transactions
qualify as Royalties as they are made for thequalify as Royalties as they are made for the
supply of know howsupply of know how
54. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
US characterizationUS characterization
reg 1.861(18)reg 1.861(18)
transactions ‘in’ a copyright versustransactions ‘in’ a copyright versus
‘‘subject’ of a copyright (copyrighted article)subject’ of a copyright (copyrighted article)
5 rights of copyright5 rights of copyright
to reproduceto reproduce
to prepare derivative works that may be copyrightedto prepare derivative works that may be copyrighted
to transfer to public for sale, or licenseto transfer to public for sale, or license
to publicly performto publicly perform
to publicly displayto publicly display
characterize substance, not formcharacterize substance, not form
55. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
US characterUS character
Adobe web page allows download ofAdobe web page allows download of
Acrobat editorAcrobat editor
Credit card fee for downloadCredit card fee for download
License agreement not to reproduceLicense agreement not to reproduce
except one copy for backupexcept one copy for backup
= sale of goods= sale of goods
56. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
US characterUS character
License is a test license for portion of feeLicense is a test license for portion of fee
after one month, must destroy copyafter one month, must destroy copy
= no ownership of article= no ownership of article
= lease= lease
E-book : fee for a one week check out thenE-book : fee for a one week check out then
encrypts itself, must return to web page forencrypts itself, must return to web page for
additional fee for renewaladditional fee for renewal
= lease= lease
57. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
US characterUS character
Firm acquires one CDROM copy, pays a one-timeFirm acquires one CDROM copy, pays a one-time
user fee (site-license) for users only in the firm,user fee (site-license) for users only in the firm,
perpetual use, no sales to 3rd partyperpetual use, no sales to 3rd party
Load on work stationLoad on work station
Work stations access CDROM from LANWork stations access CDROM from LAN
= sale of goods= sale of goods
same but a monthly fee required for continued usesame but a monthly fee required for continued use
and updates, if cancelled, then must deleteand updates, if cancelled, then must delete
entire programentire program
= lease of good= lease of good
58. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
US CharacterUS Character
Audit firm pays CO to develop programAudit firm pays CO to develop program
Pays monthly fee during development processPays monthly fee during development process
Audit firm keeps all code if cancel contractAudit firm keeps all code if cancel contract
Completed program transferred to Audit firmCompleted program transferred to Audit firm
== service feeservice fee
CO sends programmer to audit firm to teach auditCO sends programmer to audit firm to teach audit
firms code writers to save time in manipulatingfirms code writers to save time in manipulating
programs, contract called information ‘tradeprograms, contract called information ‘trade
secret’secret’
== provision of know howprovision of know how
59. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
India - USIndia - US
credit card info accesscredit card info access
US Bank has India SUB for credit cardsUS Bank has India SUB for credit cards
software and data server in USsoftware and data server in US
software: collection, analysis, creditsoftware: collection, analysis, credit
SUB accesses US through InternetSUB accesses US through Internet
pays fee for accesspays fee for access
service or royalty?service or royalty?
= royalty, see DTA rates= royalty, see DTA rates
60. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
IndiaIndia
airline computerized reservation systemairline computerized reservation system
CO: server, data, software outside IndiaCO: server, data, software outside India
– customer is travel agentscustomer is travel agents
– airlines pay CO per ticket bookedairlines pay CO per ticket booked
SUB in IndiaSUB in India
– hardware: routershardware: routers
local software to travel agent firmlocal software to travel agent firm
Is CO liable on $ paid by non-IndianIs CO liable on $ paid by non-Indian
airlines for India bookings?airlines for India bookings?
= CO “deemed” virtual presence PE in= CO “deemed” virtual presence PE in
India thus bus income attributedIndia thus bus income attributed
61. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
India DTA characterIndia DTA character
India/UKIndia/UK – look to res. of payee– look to res. of payee
BUT if Tech Ser is for own use, notBUT if Tech Ser is for own use, not
liableliable
so if non-res pays non-res for techso if non-res pays non-res for tech
serv utilized in India, not liableserv utilized in India, not liable
India/USIndia/US – res. of payee and where– res. of payee and where
utilizationutilization
62. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
US states CT & Sales/UseUS states CT & Sales/Use
Constitutional limitation = “min contacts” &Constitutional limitation = “min contacts” &
“substantial presence”“substantial presence”
No State CT when min contactNo State CT when min contact
limit to representative solicits for sale oflimit to representative solicits for sale of
tangiblestangibles
orders sent out of Stateorders sent out of State
goods delivered from out of State by commongoods delivered from out of State by common
carriercarrier
63. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
State Sales / UseState Sales / Use
BUT Consumption tax (sales, use)BUT Consumption tax (sales, use)
tickets where origination of travel was in-Statetickets where origination of travel was in-State
calls originating/destination in-State if payingcalls originating/destination in-State if paying
addressee in Stateaddressee in State
sales if “systematic sales support” in-State visitssales if “systematic sales support” in-State visits
market maintenance through problem solvingmarket maintenance through problem solving
employee visitemployee visit
software installation and trouble shootingsoftware installation and trouble shooting
requiring employee visitrequiring employee visit
64. Prof. William Byrnes +1 786 271 5202Prof. William Byrnes +1 786 271 5202
State Use taxState Use tax
Vendor selling through InternetVendor selling through Internet
state A – home server / websitestate A – home server / website
Customer state B logs onto server in stateCustomer state B logs onto server in state
A, pays CC through InternetA, pays CC through Internet
Product shipped by UPS from State A DCProduct shipped by UPS from State A DC
No mnm contacts = no sales tax in BNo mnm contacts = no sales tax in B
But state B’s use tax to customerBut state B’s use tax to customer