Abstract
Highly virtual enterprise (HVE) as a new form of business has existed in the cloud for a long time, but its taxation system is far from establishment. This paper analysed the characteristics of a HVE in the cloud environment, suggested the criteria for its tax residency determination, and recommended the framework for accounting, auditing and legislation in New Zealand. It further proposed the network system for monitoring HVE activities and accounting for their website transactions. It also provided deliverables for cloud technology to develop in the future.
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