Amazon.com cut ties with its Colorado affiliate marketers on March 8 after the US State forged ahead with its plan to introduce a mandatory Internet sales tax on e-businesses with an annual turnover exceeding USD100,000.
The measure voted on in the state Senate in February 2009, and introduced this month, obliged large providers of goods via the internet, and their marketing affiliates, to transmit sales statistics to the state, so that the Colorado state tax authorities could levy the 2.9% sales tax on purchases by Colorado consumers.
The bill was introduced as a first step to increasing sales tax compliance by Colorado taxpayers using the Internet to purchase items. Colorado is not the first state to implement such a move; authorities elsewhere have been unsuccessful in getting e-commerce giants to automatically levy and remit taxes due.
Initially the bill had been drafted to tax purchases clicked through via affiliate marketers but this was later dropped on the grounds that online retailers such as Amazon and Overstock had cut ties with affiliate marketers in three other states where this was tried.
Despite amending the proposals, Amazon cut its commercial ties with Colorado’s affiliate marketers on March 8, stating in a email to members of its associates program that “as a result of the new law, Amazon has decided to stop advertising through associates based in Colorado."
In response, Colorado authorities condemned the move as a “hostage-taking ploy”, questioning the firm’s reasoning for disbanding its Colorado marketers. "It's blackmail, it's flat-out blackmail," Jack Pommer, a Democrat representing Boulder and author of the original bill, was quoted by the Denver Post as saying.
"It shows the lengths to which they'll go to keep the advantage they have over other local businesses," he retorted..
Treaty Update: India - New Zealand
India ratified a third Protocol to its DTA with New Zealand on November 2, 2017, publishing a Notice in its Official Gazette.
Treaty Update: Gibraltar - United Kingdom
Gibraltar and the United Kingdom are considering launching negotiations towards a DTA, according to recent comments from the UK's Economic Secretary to the Treasury.
Treaty Update: Barbados - Italy
Barbados and Italy have exchanged instruments of ratification in respect of a DTA, which will now become effective from January 1, 2018.
Treaty Update: Switzerland - Pakistan
Switzerland's Government on October 25, 2017, adopted a dispatch on the DTA concluded with Pakistan, enabling its ratification.
Treaty Update: Spain - Portugal
Spain and Portugal signed a DTA on October 18, 2017.
Treaty Update: Pakistan - Latvia
Pakistan and Latvia initialed a DTA on October 25, 2017.
Treaty Update: Spain - Romania
Spain and Romania signed a DTA on October 18, 2017.
Treaty Update: Denmark - Japan
Denmark and Japan signed a DTA Protocol on October 11, 2017.
Treaty Update: Bahamas - Finland
The Bahamas and Finland signed a Protocol to amend their TIEA on October 19, 2017.
Treaty Update: Netherlands - Zambia
The Dutch lower house of parliament on October 24, 2017, approved the ratification of a DTA signed with Zambia.
Treaty Update: Cyprus - Mauritius
Cyprus and Mauritius signed a DTA Protocol on October 23, 2017.
Treaty Update: Armenia - Iran
According to preliminary media reports, Armenia and Iran are to enter into negotiations to revise their DTA.
Treaty Update: United Kingdom - Ukraine
The United Kingdom and Ukraine signed a DTA Protocol on October 9, 2017.
Treaty Update: Spain - Finland
According to preliminary media reports, Spain's Cabinet on October 6, 2017, approved the signing of a DTA and accompanying Protocol with Finland.
Treaty Update: Russia - Japan
Russia and Japan signed a DTA on September 7, 2017.
Treaty Update: Isle of Man - Turkey
A new TIEA between the Isle of Man and Turkey entered into force on October 7, 2017.
Treaty Update: United Kingdom - Belarus
The United Kingdom and Belarus signed a DTA on September 26, 2017.
Treaty Update: Morocco - Togo
According to preliminary reports, Morocco intends to launch DTA negotiations with Togo.
Treaty Update: Morocco - Bahrain
Morocco on September 21, 2017, published a notice in its Official Gazette to ratify and bring into effect the DTA Protocol signed with Bahrain in April 2016.
Treaty Update: Luxembourg - Sri Lanka
At a meeting on September 27, 2017, Luxembourg and Sri Lanka committed to expediting the negotiation of a Protocol to their double tax agreement.
Treaty Update: Burkina Faso - Turkey
Burkina Faso and Turkey initialed a DTA at the conclusion of three-day negotiations on September 22, 2017.
Treaty Update: Kuwait - Turkey
Kuwait and Turkey signed a DTA Protocol on September 15, 2017.
Treaty Update: South Africa - Cameroon
An order to bring into force South Africa's DTA with Cameroon was published in the nation's Official Gazette on September 1, 2017.
Treaty Update: Paraguay - Uruguay
Paraguay and Uruguay signed a DTA on September 8, 2017.
Treaty Update: Spain - Paraguay
According to preliminary media reports, Spain and Paraguay are to relaunch DTA negotiations.