>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?

Problem is that tax offices are not prepared to hear about specific cases or get any detailed information on your activities. You tipically fill out a form at some point and then you pay based on their categorization of your business. I think they path Michel took is the longest and hardest, but the one that can finally settle a precedent for others to follow. Let's just hope the outcome is favorable (not only for UT, but also for any other canadian online services with worldwide customers).

Regards,