Taxing a highly virtualised enterprise (HVE) in New Zealand

DOI: 10.5176/978-981-08-5837-7_143

Authors: Guozhen George Huang

Abstract:

Highly virtualised enterprise (HVE) as a new form of business grown in the cloud has existed in our economy for years, however its business activities monitoring and reporting is lagged behind. There is a mismatching issue between current cloud technologies and accounting needs. From taxation perspective, this article analysed the characteristics of a HVE and its business life in the cloud environment, suggested the criteria for determination of its tax residency, and recommended the framework for HVEs accounting, auditing and legislation in New Zealand.
It further highlighted the distributed network platform for HVEs taxation monitoring, the software for their websites monitoring and accounting, and the deliverables of an integrated system. It will provide insights about HVEs taxation, and guide the development of cloud technologies in the future.