SALES TAX EXERCISE

1
SALES TAX EXERCISE
1. Group of 5 2. Assign Reporter 3. Given
these principles, outline an acceptable US sales
tax program. Address -
Governance - Who makes the rules, - Who
collects the money - How should funds be
allocated? - Location of customer? -
Location of supplier? - Location of
server? - Other? - What (if anything)
should be tax exempt? - How to enforce? -
What about auction sites for individuals? 4.
Report back after twenty minutes.
2
CUSTOMS AND TAXATION

• US Position
• Internet is tariff-free
• No New Taxes
• Be consistent with existing principles of
  international
• taxation
• Avoid Inconsistent national tax jurisdictions
• Double Taxation
• Principles
• Dont distort or hinder commerce
• Dont discriminate or incent
• Be simple and transparent
• Accommodate US and international tax systems

Source Framework for Global Electronic
Commerce, July 97 the White House.
3
CHARTING E-BUSINESS READINESS
Organization
E-Commerce Managers and Supply Chain Managers
in Conflict
Separate Business Unit or Spin-Off
Internet Steering Committee
Business Unit E-C Manager
E-Business Sr. VP.
EDI Manager in IS Department
94 96
98 00
02 04
Source Gartner Group, September 99
4
CHARTING E-BUSINESS READINESS
Applications
Integrated Supply Chain and Collaborative Enginee
ring
Customer Self Service and Order Mgmt.
Integrated/Extended ERP
EDI - POs and Invoices
ERP
94 96
98 01
04
Source Gartner Group, September 99
5
CHARTING E-BUSINESS READINESS
Technology
Distributed Objects
EDI and E-Mail
EDI/ Internet
Active X, COM/DCOM
CGI/HTML
XML
94 96 98
99
02 04
Source Gartner Group, September 99
6
CHARTING E-BUSINESS READINESS

• Timing represents early-adopter, leading
  companies
• most other firms are in 94-96 timeframe.
• You being E-Ready is of limited value need
  to
• match your most important trading partners.
• Develop mutually beneficial strategies with
• select trading partners.

7
INTERNET IMPACT ON SELECTED INDUSTRIES
of Total in 2003 37 5
6 12 17
E-Business
Industry Computing and Electronics Telecom
(Business only) Financial Services (Business
only) Energy Travel
1999 52.8B 1.5 14.0 11.0 12.8
2003 410.3B 15.0 80.0 170.1 67.4
Source Business Week Forrester Research, 4
October 1999