So the less payroll you have in that state, the more you can drive taxes down. Generally, less tax is good. But eprocurement can also complicate assessment of those taxes, and in turn, can get a company in Dutch with state auditors. That means the tax chief has to keep a watchful eye on the transactions. But if they charge you their state or Massachusetts, then you have to tell them to fix it.
Electronic marketplaces can also be a mixed tax blessing.
Like many multi-party exchanges, Transora is a separate entity, notes Virgil Rehkemper, vice president and controller at Earthgrains. So he doesn't have to tackle the tax implications of how or where Transora will be built. Use taxes are not a major worry, either, since they are assessed at the point where the supplies are used. Other issues may prove more challenging, however. In 1996, Earthgrains began using procurement cards to replace purchase orders.