Virtual PE: International Taxation and the Fairness Act
Reuven S. Avi-Yonah
University of Michigan Law School
April 30 1, 2013
U of Michigan Public Law Research Paper No. 328
Congress may be about to enact the Marketplace Fairness Act of 2013, which overrules the Supreme Court's 1992 decision in Quill that banned states from requiring remote vendors to collect use tax on their behalf unless the vendor had a physical presence in the state. This paper explores the international tax implications of such a move given that the Permanent Establishment threshold is similar to the physical presence requirement that the Fairness Act seeks to abolish. It argues that the small business exception in the Fairness Act is a good model for international tax to follow in re-evaluating the PE threshold.
Number of Pages in PDF File: 3
Keywords: Marketplace Fairness Act of 2013, Quill, Permanent Establishment
JEL Classification: H26working papers series
Date posted: May 2, 2013 ; Last revised: May 15, 2013
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