Tax Law on the Internet
copyright 1996
Editor: Donald M. Cameron , Aird & Berlis
Contributors: Donald M. Cameron , Tom S. Onyshko & W. David Castell
Contents
Electronic Commerce Tax Issues
Electronic Commerce Tax Issues
In November, 1996, the U.S.
Treasury released a discussion paper entitled Selected Tax Policy Implications
of Global Electronic Commerce on U.S. federal income tax issues for electronic
commerce.
Charities
Vancouver Regional Freenet Association v. Minister of National Revenue considered
with whether providing free access to the Internet is a chartiable activity. The Minister
rejected the plaintiff's application to become a registered charity on the basis that the
organization does not have sufficient control over the information transmitted and
received by the users of the system. The court held the organization was a charity stating
that the free exchange of information amongst members of society has long been recognized
as a public good and is essential to the maintenance of democracy. In dismissing the
Minister's control-based argument, the court stated that a distinction must be made
between the medium and the message. Where an organization which itself is providing a
message to the public seeks charitable status (e.g. a newspaper, television station, etc.)
there must be concern that it controls the messages so as to ensure that they are
consistent with a charitable purpose. In the present case, the appellant provides access
to messages, not the messages themselves. The fact that the system could be used for
non-charitable, even criminal, activities does not diminish its chartible character.
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