A study conducted by Peter Lee U explains the issues regarding the taxation of electronic

commerce in the Philippines. Taxing e-commerce can be a threat and beneficial at the same time.
Because of the extraordinary rise of selling online, issues such as difficulty of keeping track large
transactions, and difficulty of keeping track Intangible (electronic or digitized) goods can be
experienced. This could result to tax evasion since taxpayers can easily manipulate their sales.
Also, the lack of geographical boundaries, which was one of the problems experienced by the
federal tax system in the US, can be problematic because of its difficulties in knowing which
country’s tax authority has the jurisdiction. Thus, resulting to miss out additional income tax
collections. However, the Philippines still has the advantage of observing the problems
experienced by the leading-edge countries. Since, it is difficult to foresee each possible loophole,
there is a possibility that new laws might be required or old laws might be altered. While some
tax losses may occur toward the beginning, in the long-run, benefits could outweigh such losses.

Lee U, Peter. Toward a National Tax Policy for E-Commerce.

pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsrp0401.pdf.