Various government authorities are making efforts to ensure that tax law does not lag too far behind the developments in commercial practices. However, several key issues are unresolved and whilst they represent problems for the authorities they also present opportunities for legitimate tax planning so that businesses can reduce their tax payments in some, most or all the countries in which they operate.
Businesses face risks in the tax treatment of their methods and structures.
Businesses might not be complying with VAT law in that they are required to be registered for VAT in countries where they have no presence, only customers who obtain all they need by Internet downloads.