Good points. Here in NC we have a law that basically requires us to report and pay taxes on goods or services consumed in our state - even if purchased from another state or out of the country. The end effect is that you are double taxed when using the UT. I wonder if there is an argument there? As Mike Y stated, perhaps Michel can demonstrate what country each of his subscribers reside in and then only those residing in Canada will pay the tax?


>Hi, Tracy.
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>>I'm wondering (perhaps this is what you were referring to) if it is the fact that the system is hosted in Canada or where the service is provided from that matters? In other words, if the UT is hosted on a server in Canada but the service is managed financially out of the country, would that make a difference? Probably not...
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>As usual, your main tax responsibility is in the country in which you are incorporated. This is the case for Level Extreme. Of course, if you operate in a different country (which in our case could be hosting UT in Nepal, for example) you have to get local permission, and most probably pay some sort of tax or canon.
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>In any case, services provided worldwide are generating more and more legal complications. As an example, Google was sued in Belgium by several newspapers alleging that Google News was linking to them and posting their headlines. They won in Belgic court and thus Google can't link to news sites there, as they do in any other country. Something similar happened to eBay in France, where they had to ban any kind of Nazi memorabilia from their store when accessed from France.
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>So while you are primarily subject to your country of incorporation laws and taxes, local issues can arise. I guess law globalization is still in it infancy...
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>Regards,