Its an undeniable fact that technology evolves faster than the law, and nowhere is this more apparent than in the cloud. Sut12001 cloud computing issue what are the sales and use tax consequences of accessing taxable canned software on remote servers, also known as cloud computing. Tax implications of cloud computing how real taxes fit. Lusch abstract as the digital environment in which we live continues to change at speeds that were unfathomable two decades ago, archaic state. The latest controversy regarding the taxability of software is cloud computing. Security issues and their solution in cloud computing. Cloud computing for increased business value abdulaziz aljabre 318 selwyn dr. Working in the cloud tax considerations of cloud computing august 2012. Security issues and their solution in cloud computing prince jain malwa polytechnic college faridkot, punjab151203, india prince12. Cloud computing, also known as ondemand computing, is a form of internetbased computing that allows end users to share information and resources. Security and reliability of cloud computing services remain among the dominant concerns inhibiting their pervasive adaptation. Sales tax issues for computer software and cloud computing.
Cloud computing is a platform for the next upcoming generation of the internet. Businesses arent just implementing cloud computing as an addon to their current business technology strategy, theyre. Environments to the irs office of safeguards at least 45 days prior to transmitting fti into a cloud environment. Although security is a big issue, it should not scare you away from using cloud that can save you a lot of money and resources. It has revolutionized not only the it industry but has also revolutionized the hardware and software industry. Abstract cloud computing offers great potential to improve productivity and reduce costs, but at the same time it possesses many security risks. The paper conditional ciphertextpolicy attributebased encryption scheme in vehicular cloud computing presents an expressive and finegrained conditional ciphertextpolicy attribute based encryption ccpabe scheme in vehicle cloud computing, which can maintain both data security and system efficiency. This multilevel classification provides a new dimension to address security concerns on multiple levels and minimization of their effects. The threat of coexist with an unknown tenant on a public environment 6 executive summary cloud computing has arrived as a solution to reduce costs in organizations and at the same time offer ondemand resources and computation without requiring to create an it infrastructure. Cloud computing environment internal revenue service. With a name as nebulous as the cloud, it isnt any wonder that applying multiple complex tax schemes to cloud services can quickly expand into a storm of issues for any business. This technical bulletin addresses the application of the new jersey. The simple idea of moving large computing tasks from smartphones and desktops into bulky data centers via internet links is gathering a ton.
Recommendations for implementation of cloud computing solutions 1 1. Section 3 deals with the overall architecture of the proposed plan elaborating on need of cloud computing in 3. It would seem that cloud computing has crossed the rubicon. Cloud computing is an arrangement to access and use hardware and software hosted on the server of a vendor for a fee. In a 2012 policy document titled unleashing the potential of cloud computing in europe, the european commission ec called for. Mar 17, 2016 businesses that operate online, beware. Cloud computing is a new enlargement of grid, parallel, and distributed computing with visualization techniques. Cloud computing is an emerging model of business computing. May 05, 2014 3 responses to top cloud computing security issues and solutions suresh may 6, 2014 at 8. Achieving network security in cloud computing sdxcentral.
Idc 2012 quantitative estimates of the demand for cloud computing in. The term big data arose under the explosive increase of global data as a technology that is able to store and process big and varied volumes of data, providing both enterprises and science with deep insights over its clientsexperiments. Cloud computing is a big deal, and only getting bigger. Many state statutes do not specifically address cloud computing and states are taking differing positions regarding the sales and use tax. Practical and ethical considerations on the use of cloud. Cloud computing pdf notes cc notes pdf smartzworld.
Cloud computing raises important and difficult questions in state tax law, and for federal taxes, particularly in the foreign tax area. Amazon was a pioneer in remote computing services and is now the owner of the worlds largest cloud computing company, amazon web. The cloud computing market has attracted major players. Although cloud computing service offerings continue to proliferate, states have been slow in addressing the application of sales and use taxes to the different types of cloud computing service models. In cloud environment, users remotely store their data and relieve themselves from the hassle of local storage and. Consumption taxes sales taxes and vat vary widely from state to state and country to countryboth as to the. Initially driven by the deployment of it applications leveraging the economy of scale and multitenancy, the use of cloud computing has expanded to a much more diversi ed one. This is what has seen cloud computing become the biggest buzzword in information technology it in recent times. Cloud computing 28 november 2012 vered kirshner, tax partner, pwc israel omri yaniv, international tax partner, pwc israel. Introduction the term cloud computing refers to accessing services or information from third party data centers. And for technology companies, this means that cloud tax issues and impacts are plentiful, complex and significant. The papers in this special issue demonstrate the broad span of concerns in cloud computing security.
Cloud computing, also known as ondemand computing, is a kind of internetbased computing, where shared resources, data and information are provided to computers. When a company decides to store its data in the cloud, one of the choices it must make is whether to store the information on physical resources devoted solely to its data and computing services, or share those resources with other entities who are using the same cloud providers services. As cloud computing solutions are adopted by businesses, items we. With cloud computings easy access to data on a large scale, it can be difficult to keep track of who can access this information. Cloud computing taxation and digital content sales issues. Mayer brown llp and mayer brown europebrussels llp both limited liability partnerships. Every major tax software now has a cloud solution but has a hosted solution. International journal of computer science and network ijcsn volume 1, issue 5, october 2012. As cloud computing is achieving increased popularity, concerns are being voiced about the security issues introduced through the adoption of this new model.
Nine out of ten companies have already moved at least some of their applications or computing infrastructure to the cloud or plan. Pdf cloud computing security issues, challenges and solution. Bharadi abstract cloud computing is the use of computing resources that are delivered as a service over a network. This article explores tax challenges faced by providers of cloudbased services. Recommendations for companies planning to use cloud computing services from a legal standpoint, cnil finds that cloud computing raises a number of difficulties with regard to compliance with the. Cloud computing research issues, challenges, architecture. Minutes on modern finance best practice series tax implications of cloud computing. The advent of cloud computing and its profound reshaping of the architecture of. The distributed and the multitenancy nature of the cloud computing. State taxation of cloud computing mayer brown is a global legal services provider comprising legal practices that are separate entities the mayer brown practices. Cloud computing is highly cost effective because it operates at higher. Cloud computing is a term used to describe both a platform and type of application.
Cloud taxation issues and impacts overview technology companies are at the forefront of multinationals operating in a developing new global tax environment. The definitive guide to cloud computing dan sullivan i introduction to realtime publishers by don jones, series editor for several years now, realtime has produced dozens and dozens of high. International rules and regulations related to trade and cloud services. Research article study of security issues in cloud. Cloud computing, often referred to simply as the cloud,1. Direct taxes code the impact of the new direct taxes code proposed to replace the information technology act from 2012. Licklider introduced the term in tergalactic computer network at the advanced research proj ects agency. An introduction to the types of cloud computing dzone cloud. Today, cloud computing generates a lot of t excitement. Public vs pcc cloud computing security overview over the last few years, cloud computing has become a buzzword on the internet. First, the concept of cloud computing is explained. Raj jain download abstract the field of cloud computing is still in its infancy as far as implementation and usage, partly because it is. Special issue on security in cloud computing journal of.
Cloud computing is an emerging paradigm in the advanced network arena that facilitates the users to access. In my essay clouds will be defined and explained as in business benefits of cloud computing, and outlines its major components. Unleashing the potential of cloud computing in europe. Cloud computing is a model for enabling convenient, ondemand network access to a shared pool of configurable computing resources e. Cloud computing challenges and related security issues. Practical and ethical considerations, page 1 practical and ethical considerations on the use of cloud computing in accounting katherine kinkela iona college abstract cloud computing promises cost cutting efficiencies to businesses and specifically their accounting departments through the use of third party vendors to store and process information.
Cloud taxation issues and impacts ey united states. Automatic software updates on a global average, in 2010, online companies spent 18 working days per month managing. Thanks to cloud computing, ibm is able to respond rapidly to customer needs in a far more costeffective manner. Cloud computing is a set of it services that are provided to a customer over a network on a leased basis and with the ability to scale up or down their service requirements. Cloud computing is a versatile technology that can support a broadspectrum of applications. An introduction to the types of cloud computing saas, paas, iaas its easy to get lost in these industry disrupting abbreviations for to cloud services. Indeed, many states are attempting to tax those new services under their existing computer software provisions based on the rationale that software is used to provide cloudbased services. Cloud computing issues at design and implementation levels. Cloud computing claims to take enterprises search to a new level and allows them to further reduce costs through improved utilization, reduced administration and infrastructure cost and faster deployment cycles boss et al. In this introduction, we aim to give a succinct description of what cloud computing entails, and in so doing shed light on the various characteristics defining this technology.
Risks, data classification, safeguarding of the data to determine if current cloud computing users are adequately protecting data and addressing the risks of. A novel multilevel classification of security concerns in cloud computing highlighting the effect of different security attacks on each cloud layer is presented in this paper. The key is to do proper due diligence with your cloud providers and really understand their service level agreements slas. In this paper, we explore the concept of cloud architecture and. Cloud functions are, therefore, described as services, which leads to a host of tax issues, particularly since few states tax services, and because the issue of taxing software has traditionally. The kind of data you access from the cloud isnt the kind of information or software product that triggers a sales tax at least in most states. What are the sales and use tax consequences of accessing taxable. Data security is one of the biggest concerns in adopting cloud computing. Conclusion accessing taxable canned software is taxable when the user is located in pennsylvania. Security and privacy challenges in vehicular cloud computing. Until quite recently, the main objection to cloud computing cited by surveys and anecdotal. Cloud computing has leveraged users from hardware requirements, while reducing overall client side requirements and complexity. Enhancing data security in cloud computing yuvraj gupta abstract cloud computing is a new mechanism to deliver products from producer to consumer in a very different and efficient style of computing. Purpose 1 this transmits revised internal revenue manual irm 10.
Cloud computing providers take care of most issues, and they do it faster. Jul 31, 2012 the cert insider threat center is frequently asked to comment on insider threats related to new and emerging technologies. Cloud computing security or, more simply, cloud security refers to a broad set of policies, technologies, applications, and controls utilized to protect virtualized ip, data, applications, services, and the associated infrastructure of cloud computing. In simple terms, cloud computing is the process of delivering services hosted on remote datacenters connected through the internet. This is a pdf file for cloud computing, took it up from some random site on the internet, thought id share it. When considering a migration to cloud computing, its critical to factor any taxes. Insider threats related to cloud computinginstallment 1. Cloud computing by definition using the internet as part. Although cloud computing service offerings continue to proliferate, states have been slow in addressing the application of sales and use taxes. Cloud computing is a ubiquitous feature in todays increasingly connected world. Background of the cloud the concept of cloud computing has been evolving for more than 40 years. Tax considerations of cloud computing ey united states.
Recommendations for companies planning to use cloud. Theres no arguing that cloud computing is gaining a great deal of momentum. The taxation of cloud computing and digital content. Cloud computing is all the rage, and likely to remain that way. The resources can be used without interaction with cloud service provider.
While not necessarily new, cloud computing is a paradigm that has recently emerged as a key component in many enterprise information systems architectures. This article looks at the evolution of the application of sales and use taxes. Addressing cloud computing security issues sciencedirect. Solutions of cloud computing security issues jahangeer qadiree 1, mohd ilyas maqbool 2 research scholar 1 aisect university institute of science and technology india abstract cloud computing is a model which uses the mixture concept of softwareasaservice and utility computing, and provides. The struggle to tax the cloud as the economy shifts from one that relies on goods to one that relies on services, states are finding it hard to capture revenue from constantly evolving. Cloud computing issues at design and implementation levels a survey a. Top cloud computing security issues and solutions cloudave. Cloud computing security issues florin ogigauneamtiu it specialist the regional department of defense resources management studies, brasov, romania the term cloud computing has been in the spotlights of it specialists the last years because of its potential to transform this industry. Various definitions of clouding computing exist, perhaps the most concise is the one provided by the research firm gartner, inc.
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