This Article argues that governments should abandon the treaty concept of permanent establishment and adopt international tax reforms that restore the primacy of "market country taxation of multi-national business profits promoted by domestic tax laws. Part I explores several emerging e-commerce issues that demonstrate the tension of introducing traditional tax norms to a digital environment. Part II reviews historical and recent developments in the international taxation of business profits and looks at the underlying trends and sentiments for reform of the existing system of global taxation of business income. Part III canvasses several prominent international tax reform alternatives proposed by governments, multilateral organizations and tax commentators around the world. Finally, Part IV proposes the adoption of tax rules and norms that allow each nation unfettered jurisdiction over business income, including e-commerce profits, derived from transactions completed within that country's borders.
Aldo Forgione, Clicks and Mortar: Taxing Multinational Business Profits in the Digital Age, 26 SEATTLE U. L. REV. 719 (2003).