Panama of the internet?

National laws no longer apply

[IanTurner]

There has been a lot of discussion recently about the US applying sales tax to internet purchases and the EU banning cookies. This leads me to think that somewhere will end up being the Panama for ecommerce.

If shipping companies fly the Panamanian flag as a flag of convenience - why should internet companies be worried about national laws. All it will take is to register a company under the right jurisdiction to avoid the laws that you find a problem.

So the re3al question is where is ecommerce going to be based in the future?

Panama? Monaco? Liechenstein? Which country with liberal tax laws is going to be looking to make a profit from liberal internet regulation?

Or can someone give me a good argument why such a situation should not arise!!

[Mark_A]

"This leads me to think that somewhere will end up being the Panama for ecommerce."

Ian your question comes at the same time that these Panama's are being pressured post Sept 11th to stop dodgy movment of terrorist funds and existing loopholes (the ability to sell tax reduced fags to the UK from Spain for example) are being shut by intergovernmental action.

If it starts for legit ecommerce (porn and gambling / gaming afaik are already doing this) then there may also be consumer pressure and where physical goods are concerned, products still have to be shipped to punters.

If products are shipped for example into the US they have to cross customs zones with declarations. Carriers such as Fed-ex or UPS are responsible for ensuing payment of correct duties are paid pre moving the goods onward.

I think for solid goods problems will still apply.

[toadhall]

If a Panama of the 'net did develop, and it stood in violation of national laws I suppose the UK could do what the Saudis do: block it.

"Nearly a dozen software companies, most of them American, are competing for a contract to help Saudi Arabia block access to Web sites the Saudi government deems inappropriate for that nation's half- million Internet users."

[nytimes.com...]

[4eyes]

As I recall, there is a company set up on an old military platform in the sea outside national waters, who claim to offer 'totally secure' hosting free of national regulations.

I thought it was a joke at first, but they have managed to get a couple of full page reports in the national press.

Can't imagine them getting away with it for long.

[4eyes]

How on earth could the EU manage to ban cookies, something which they barely understand, when so many of their other 'simple' legislation is flaunted almost openly by farmers, fishermen, shopkeepers et al throughout Europe.

Still it will give me a laugh watching them get egg on their face again.

NB I am not Anti-Europe, just anti-bureaucrat. Most of the British Euro MPs - whatever their party - are the ones who had no future left in national government and were 'put out to grass' in Europe.

[Mark_A]

"How on earth could the EU manage to ban cookies, something which they barely understand"

Europarl A5-0374/2001
Link to cut and paste:[http://www2.europarl.eu.int/omk/OM-Europarl?PROG=REPORT&L=EN&PUBREF=-//EP//TEXT+REPORT+A5-2001-0374+0+DOC+SGML+V0//EN&LEVEL=3]

I think they understand quite a bit, as do microsoft which recently realised that by manipulating urls, unscrupulous webmasters could gain access to all the cookies in your IE5.5 or 6 browser, not just the one posted by their website.

There are issues of privacy especially for those on fixed IP addresses and those who interact with websites that might share data in their log files with marketing and trending companies.

Or do you not mind that your online habits be far far less secure than your offline credit card trading?