Welcome to the digital.law repository at the University of Washington

Head in the Clouds, Head in the Sand: Federal Failure to Update Guidance on Computer Transactions in an International Context

Show simple item record

dc.contributor
dc.contributor.author Weaver, Logan S.
dc.date.accessioned 2019-01-07T18:38:20Z
dc.date.available 2019-01-07T18:38:20Z
dc.date.issued 2018-12
dc.identifier.citation 93 Wash. L. Rev. 2213 (2018) en_US
dc.identifier.issn 0043-0617
dc.identifier.uri http://hdl.handle.net/1773.1/1858
dc.description Volume 93, no.4, December 2018 en_US
dc.description.abstract Abstract: The United States has two different rationales for taxing income of non-U.S. persons and entities. First, the income may be “sourced” to the United States, as defined in the Internal Revenue Code. Alternatively, the income may be effectively connected to a trade or business within the United States that provides income to the non-U.S. person or entity. The sourcing rules for income of non-U.S. persons and entities depend heavily on the nature of the underlying transaction and the geographical location where certain key elements of the transaction take place. So long as the non-U.S. person or entity avoids activities that constitute a trade or business within the United States under the Internal Revenue Code, precluding taxable effectively connected income, even significant revenue streams may escape taxation by the United States. With the rise of new models of digital transactions, companies may structure their business operations to limit or avoid U.S. taxation. Twenty years ago, the Department of the Treasury developed regulations governing computer transactions. Since then, new mechanisms for digital deliveries have developed, including the cloud computing products. These products—software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS)—have sprouted, rooted, and blossomed into an expansive and profitable industry. This Comment summarizes the landscape of cloud taxation, reviews different ways to frame cloud transactions under current law, and advocates for new federal action to ensure income does not escape taxation by virtue of the underlying transaction’s technological form. en_US
dc.language.iso en_US en_US
dc.publisher Seattle: Washington Law Review, University of Washington School of Law en_US
dc.subject Comment en_US
dc.title Head in the Clouds, Head in the Sand: Federal Failure to Update Guidance on Computer Transactions in an International Context en_US
dc.type Article en_US
dc.rights.holder Copyright 2018 by Washington Law Review Association. en_US


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search digital.law


Advanced Search

Browse

My Account