Should You Check With Your Tax Advisor Before Moving to the Cloud?
September 7, 2012
Grazed from Forbes. Author: Joe McKendrick.
KPMG LLP, a firm whose members think about taxes all day and every day, is concerned that too many companies are overlooking the tax considerations of moving to cloud computing.
This oversight is surfaced in a new survey the advisory firm just conducted among 206 senior corporate tax professionals. While the use of cloud environments continues to be increasingly embraced by companies, 52% of senior U.S. corporate tax professionals surveyed say they are “generally not included in discussions with top management or other groups in their organizations” to discuss the tax implications of cloud initiatives…
Does it matter whether these folks are in on the decision-making? Is there really reason to worry about the tax implications of cloud computing?
The tax gurus’ main fear is that use the cloud means crossing over jurisdictions. Forty percent of the tax executives said companies need to identify how the use of cloud expands or contracts a taxable presence in the United States and foreign jurisdictions. In essence, using a cloud that originates from a server based in another country may be the same as moving work offshore…
Read more from the source @ http://www.forbes.com/sites/joemckendrick/2012/09/06/should-you-check-with-your-tax-advisor-before-moving-to-the-cloud/