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Provide a 6 pages analysis while answering the following question: E-Marketing of Hong Kong, Malaysia and Australia. Prepare this assignment according to the guidelines found in the APA Style Guide. A
Provide a 6 pages analysis while answering the following question: E-Marketing of Hong Kong, Malaysia and Australia. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. Wee Lee of Kuala Lumpur ordered for an accounting software latest version through the internet. The payment, as well as the delivery, is done through an online process, so no other entities are involved in this process like the customs department and the courier company. But another customer Lia Yoe of Kuala Lumpur also ordered the same and wants delivery by courier. In that case, Lis Yoe will be charged import duty by the tax authority of Malaysia and Wee Lee will not charge any tax for time being.
In e-commerce, there would be no direct contact with any customer relationship, or any employees, or the seller. Therefore, the Permanent Establishment (PE) becomes less clear. There some other examples which destroy the tax like computer software, stock trading and magazines, photographs and also books.
Table 2 states the income collected by the Malaysian companies a projected the loss of tax from 1997 to 2004. It is seen that the development of E-commerce in Malaysia is getting larger at every year. In Table 2, it is shown in the year 2003, Malaysia makes a loss of around US$98.16 million or RM392.62 million in tax collection. In 2004, it increases by about 68% or RM 659.27 million.
“Scope of Charge” is a limit of tax to an income in a specific country. Now, Malaysia practices scope of charge in ‘derive and remittance’. It states that all revenue derives in Malaysia and that revenue derives out of Malaysia but remitted to Malaysia is subjected to Malaysian Tax. This is only applicable to a residence. According to Kasipillai and Razak and Ming, the scope of charge is not capable to cope with information Technology mainly in e-commerce. By utilizing the scope of charge will raise the tax dodging among the one who uses e-commerce as the administrator of Tax cannot locate the e-commerce doers.
