Tax lawlessness in an e-commerce land

Of critical importance to a treasurer of a multi-national corporation (MNC) is the ability to manage cash flows across a multitude of currencies, countries, and time zones. Using a number of techniques such as netting, pooling and sweeping, a treasurer is able to consolidate, deal with shortfalls and excesses, and take advantage of differing regulatory and tax environments throughout Asia. But recent economic turmoil has forced many Asian governments in Asia to review their tax and regulatory systems, and the goal posts have shifted once again. Looking ahead, the potential e-transformation of treasury has also thrown up a new set of considerations for the MNC treasurer. As a result, though not the sexiest thing to spring to mind, tax and regulatory issues must be considered by treasurers conducting activities cross-border in an electronic world. At the recent Eurofinance conference in Singapore, Paula Eastwood, tax partner at PricewaterhouseCoopers in Singapore summarized some of the current key tax issues in electronic commerce for treasurers in Asia.