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Re: Broadband ISPs taxed for "generating light energy"

  • From: Owen DeLong
  • Date: Tue Oct 10 12:24:16 2006 
On Oct 10, 2006, at 8:08 AM, Bill Woodcock wrote:




Sounds reasonable to me. Since the sale of energy is
usually measured in kilowatt-hours, how many kwh of
energy is transmitted across the average optical fibre
before it reaches the powereda mplifier in the destination
switch/router?




Also, remember, it's _net_ energy delivered which matters... I'm
sure the

customer is delivering light back toward the ISP as well.



-Bill



From my reading of the article, it appears that they are attempting to

tax at 12.5 percent, the ISPs entire service revenue because that

revenue is derived from the delivery of light energy, thus making the

"IP service" actually a "utility product".



It looks like the tax department is arguing that what is currently being

billed/taxed as a service is actually a product and such product should

be subject to VAT.



It would be akin to California adding 7.75% to my ISP bill for sales
tax.



Owen




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