Abstract

E-commerce transaction has grown immensely. It has directly or indirectly imposed a number of challenges to the government
administration particularly to the tax system. There are mix views to the implication of e-commerce. Some opine that ecommerce
improves tax system, while others belief that tax system was designed in the era where e-commerce does not exist,
thus, creating problems to the tax system. This study, therefore, investigates the tax problems posed by e-commerce and
solicit opinions from various parties on problems faced in taxing e-commerce.
The findings reveal that tax administration was ranked as the highest potential tax problem, followed by tax evasion, double
taxation, tax avoidance, and tax free. In addition, there is no significant difference in the subjects’ attitudes towards ecommerce
and internet tax. Overall results show that subjects perceive e-commerce as creating tax problems, however, their
views do not differ on tax liability from physically or electronically oriented commercial environment.

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