Answered You can hire a professional tutor to get the answer.
Provide a 7 pages analysis while answering the following question: Justification of the Concern over E-Commerces Effects on Tax Revenue. Prepare this assignment according to the guidelines found in th
Provide a 7 pages analysis while answering the following question: Justification of the Concern over E-Commerces Effects on Tax Revenue. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. Under such a competitive market environment, the best survival strategy of any firm is to render services of world-class standards. Here, the Internet comes to great help to firms by providing access to the knowledge bank. An online business that is commonly known as e-commerce offers a completely new way of conducting business transactions by utilizing modern technology of the information society.
E-commerce can be defined as “the use of electronic transmission medium (telecommunication) to engage in the exchange, including buying and selling of products and services requiring transportation either physically or digitally from location to location."2Introduction of eCommerce has been found to have produced some positive effects on the economic performance of a country. It offers innovative ways of selling, delivering, and receiving goods and services and affects almost every industry and all aspects of business mechanisms and in this process dramatically contributes to productivity enhancement of the industries.
In spite of producing so many good effects on the economy, increasing e-commerce, however, results in growing concerns of government over the issue of tax loss for which e-trading is being increasingly held responsible. There is a general perception that tax implications of e-commerce are not always very positive, or in other words to say increasing eCommerce results in a huge loss in tax revenue. It would be therefore interesting to see how far this kind of concern or perception can be justified.
Concerns over loss in tax revenue due to an increase in e-commerce have not emerged without any valid base. A number of researchers have conducted various theoretical and empirical studies to find out the implications of e-commerce on tax collection by the government. They have found that e-commerce has some serious implications on tax collection by the government. The increasing involvement of business enterprises in e-commerce has given birth to a number of problems in the area of sales tax collection by governments in many countries including Australia.
