Overview
Law360 quoted Steptoe Chair Phil West in an article titled “Parallels Seen in State, EU Efforts on Digital Taxation.” The article, published March 14, discusses how state tax administrations and those around the world, long thwarted by businesses that sell into their jurisdictions without paying tax there, are fighting back in ways that reflect a cross-pollination of ideas.
West tells Law360 that the European Union (EU) income tax and the South Dakota use tax have different governing rules, but “in a broad sense, the nexus issues are similar. Whether states have sufficient reach to tax a remote seller is obviously similar conceptually to whether EU countries have sufficient reach to create a permanent establishment (PE) without the physical presence that historically has been a hallmark of the PE.”
The full article can be read at Law360 (subscription required).
