ATLANTA and WASHINGTON (January 9, 2013) – Sutherland Asbill & Brennan LLP’s State and Local Tax (SALT) Team has launched the Sutherland SALT Digital Economy Forum, which provides resources, legislative monitoring and advocacy, and strategic counsel on state taxation of the Digital Economy. The Digital Economy includes cloud computing, digital goods and services, electronic payments, and other goods and services delivered or transferred electronically.
The state tax ramifications of Digital Economy transactions are incomplete and evolving. A recent survey by Sutherland SALT of leading cloud computing providers illustrates the confusion. Approximately one-third of the respondents sourced sales tax transactions using customers’ billing addresses, and nearly three-fourths of the respondents do not apportion sales of cloud computing services for sales tax purposes when the benefit of the service is received at more than one customer location.
“Every large business engages in Digital Economy transactions," said Jeffrey A. Friedman, a Sutherland SALT partner, “and the results of our survey of leading cloud computing providers demonstrate the confusion that exists among businesses regarding how to navigate state laws governing Digital Economy taxation. Our Digital Economy Forum will serve as a valuable resource to businesses seeking information on the state and local tax consequences for income taxes, sales taxes, telecommunications taxes and fees, employment tax and information reporting, and property taxes."
The Forum provides publicly available resources on the taxation of the Digital Economy, including a concise illustration of the vast differences in approach to the state taxation of the Digital Economy, recent presentations and publications. Additionally, companies that become members of the Sutherland SALT Digital Economy Forum benefit from sharing in-depth insights and gaining access to proprietary research, analyses and commentary on Digital Economy taxation developments.
To access the Forum, click here.
SUTHERLAND ASBILL & BRENNAN LLP
Sutherland Asbill & Brennan LLP is a law firm with global reach known for solving challenging business problems and resolving sophisticated legal issues for many of the world’s largest companies. Founded in 1924, the firm handles matters throughout the United States and worldwide. Seven major practice areas—corporate, energy and environmental, financial services, intellectual property, litigation, real estate, and tax—provide the framework for an extensive range of focus areas, allowing Sutherland attorneys to serve a diverse client base that ranges from small and medium-sized start-up businesses to a significant number of Fortune 100 companies.