Automated Clearinghouse Tax in framework of Clearing Retail Payment Arrangements

2002 Fiscal Year Final Research Report Summary

• Project/Area Number: 13620030
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Single-year Grants
• Section: 一般
• Research Field: Public law
• Research Institution: Keio University
• Principal Investigator: KIMURA Konosuke Keio University, INSTITUTION Keio University, DEPARTMENT Faculty of Law, TITLE OF POSITION Professor (60051885)
• Co-Investigator(Kenkyū-buntansha): YOSHIMURA Norihisa Keio University, Faculty of Law, Associate Professor (80230811) ; NISHIYAMA Yumi Tokai University, Faculty of law, Associate Professor (20296221)
• Project Period (FY): 2001 – 2002
• Keywords: Electronic commerce transactions / Electronic clearinghouse / Consumption-type impersonal income tax / Clearing retail payment system / international tax law / allocation rules of the revenue / Automated Clearinghouse Tax (ATC) / consumption tax

Research Abstract

Prof. Kimura propose the Automated Clearinghouse Tax (ACT) in framework of clearing retail payment system. The income spent in electronic commerce transactions should be to subject ACT, which would link up with the existing consumption tax. ACT is characterized as the consumption-type income tax, and hence ACT should trigger the income spent by B2C electronic transaction instead of B2B e-commerce. Moreover, qualified automated clearing houses (ACHs) may access to the relevant information about the billing address, the real name, domain name, bank account, consumption-location and residence of end-consumers, the amount of income spent in electronic commerce transactions, name and location remote sellers as well, if the legislative would allow to disclosure the relevant information, considering the unexpected development of technology.. I propose to amend a set of the provisions concerning allocation the revenue of the ACT to both countries of the residence and consumption respectably. I t is not necessary any more to discuss the permanent establishment for the electronic remote sellers. The location of ACHs is a connecting point to the tax jurisdiction. Apportional formula should be established for the purpose of allocation of the ACT to the relevant countries. I believe ACT model is feasible and fair without difficulties. ACT model would be able to stop the tax erosion from e-commerce.
My ACT model is distinguished from the online clearinghouse tax proposed by Prof. Cockfield (Canada). He will establish the independent institutions for collecting tax, which are not necessary from my stand... However, we employ the electronic clearinghouse and retail clearing payment system, and the computer software for taxation... He is a dominant member of our research group. His contribution is appreciated very well. Prof. McNulty (USA) reported "Traditional United States international income taxation and the stress points created by emerging electronic commerce." Moreover, Prof. Hey (Germany) explained :"the application of the OECD Model Treaty to E-commerce transactions" from German view, Furthermore, Dr. Pinkernell (Germany) reported "application of the E.U. Value Added Tax to e-commerce transactions" from German perspective. Last, but not at least, it is proud to list up Articles written by all of our members in English.