Digital convergence is creating opportunities and challenges for businesses competing in a global marketplace. Tax is an important - and often neglected - aspect of the convergence process. How a business tackles tax issues can make the difference between profit and loss in the convergence evolution.

The attached insert, Tax Issues in Digital Convergence, outlines a number of critical direct and indirect tax questions that tax practitioners need to consider from the beginning of the convergence process. For example, as borders dissolve for business purposes, which government entity has the right to tax? As different products and ideas enter the marketplace, how will a good or service be defined and what types of taxes will be applicable?