Urgent help needed - Serious issue ...

[DomainEmpire.com]

I need urgent help and advice, we're having some serious legal problems, accusation are many but, to simplify things, for now I'll discuss with you only the topic where you might help me.

Probably, I'll soon need to demonstrate in front of an Italian court, in order to help a good friend of mine [which had a first revenue coming from his job and a second revenue coming from PPC (some domains parked on Sedo)] that "domain parking" can't be considered as a second job.

In few words, I should simply demonstrate that domains are considered as a sort of "virtual real estate" and that parking revenue is just a way to rent them to a third party exactly as we might do with a house so this kind of revenue in't coming from a real job.

Is there any US/International law or any previous case which might help me to demonstrate that domains are considered as a sort of "virtual real estate" ? I need you help only on this point then I'll be able to do the rest by myself, thanks since now for your time and kind assistance.


Luigi

 

[jazzpetals]

It may not be considered a "second job", however, it is considered to be "other income", or "miscellaneous income", whether virtual or not. Hope this helps a bit.

 

[ilovedomains]

The whole sex.com case was about whether or not domains are property

"Sex.com domain name is property – so owner can sue VeriSign"
http://www.out-law.com/page-3759

 

[Bill Roy]

I know of no legal cases along the 'direct' line you ask, but it is an investment of capital, just the same as an investment in shares or bonds, and in this instance competent investors do their research before investing (just like competent domainers do). I do not know of a single domainer who is 'employed' as a 'domainer'.

There was a similar case in the UK about 10 maybe 15 years ago I think. A gambler was sued by the Inland Revenue (tax authority here). The claim by the Inland Revenue was that the person concerned was a 'Professional Gambler'. I am glad to say that the Inland Revenue lost the case as it was deemed that no matter how much time the person spent researching the subject (i.e. gambling) he could not be considered as being employed in it as his investments such as they were are that, just investments.

Now it may well be that domaining can be looked on as an investment and that any income arising directly from it may be termed investment income (as here in the UK), however, unless the person charges for advice or to invest other peoples money then it would seem it would not constitute 'a second/ary employment or job'.

Hope this helps.

Good luck to your friend, let us know how it turns out if you would.

 

[hunnam]

In the UK an item which brings in money is an income stream, I am not sure about Italy.

 

[GoPC]

If the court decides that someone is "in the practice of buying, selling and otherwise collecting revenues for"... ANYTHING, it can easily interpret that equal to being employed. There are professional Investors. If you put to much emphasis in the Investment side of domaining, it will beg the question of regulation... and you do NOT want to go there.

In the end, the question will likely be proportionate to the AMOUNT of money your friend is earning in this "non job". If he meets or exceeds his occupational earnings, it will be a VERY hard argument. Even if it is HALF his regular earnings....

The point remains, IT IS EARNINGS.

I assume that he is going to court because the Government has decided that not recording those earnings have given then a case for Tax Evasion. It must be sixable as well, or they wouldn't likely be dragging him in.

I'd say, for the most part, he's screwed. There isn't going to be any talking your way out of this on the merits of what you CALL what he is doing... the question will be, IS he earning income and IS he reporting it and paying taxes on it. If the answer is YES, he is taking in money and NO he is not paying on it... he's done.

The best thing to do, in this case I would think... is to get an accountant or cpa and get a quick figure on what he owes them and try and crap the cash or make a settlement offer and get legit.

I would be leary about making a target of yourself by saying that YOU do the SAME THING and don't pay taxes either.

In any case, good luck... I think we're all curious to see what happens.

Keep us posted.

GoPC

 

[DomainEmpire.com]

Thanks anyone for your first input, I'm forwarding anything to his attorney and we'll discuss this matter further all together in the next days.
Hoestly, due to the scarce knowledge about web domains here in Italy, it would have been better demonstrating, with reference to a specific law (if any). how domains have been considered in the near past but it's already a good beginning, thanks again.
I'll keep this thread updated even if things will go ahead for months, i'm afraid ...

 

[muris]

Passive Income - this may be the good key to base this particular case on. Do your research based on this.

 

[DomainEmpire.com]

Thanks muris, we'll do some research basing on "passive income coming from domain names" and we'll see what we'll find ...

We now need help to find at least a currently active domain parked at Sedo using this kind of interface:
http://web.archive.org/web/20051231062320/http://www.agenziadogana.it/

This's a template saved by archive.org while we need to find an active domain if still possible (because visiting such dynamic page from Italy would show Italian sponsors which's what I need and which can't happened by visiting old pages on archive.org), it's really important as part of what I'll need to proof to the court on his behalf, thanks for helping.