On Aug. 9, 2019, the IRS issued proposed regulations (Proposed Regulations) addressing the U.S. federal income tax treatment of cross-border cloud transactions. The Proposed Regulations will not become effective until final rules are adopted.
By way of background, the last time the IRS meaningfully addressed the taxation of cross-border digital content transfers was in October
Migration is already underway, but some of the world’s largest organizations are still reluctant. They handle proprietary data and a staggering volume of transactions. They want to marshal information and deliver nuanced results. But a lack of appreciation for the Cloud’s promise, together with questions surrounding security and cost, make many CTOs and COOs cling to legacy systems.
At the surface, the Cloud is seemingly straightforward even for occasional users; using encryption and/or password protection, individuals log on to a website, smartphone app, or similar “thin” interface. They may send an email, manage ‘Internet-of-things’ controls, reserve a seat, store a document, access a data base, or subscribe to an online tool for accounting or lead tracking. While it’s clear that the “back office” intelligence sits someplace else, users probably don’t appreciate the architecture.
Understanding the Cloud’s capabilities and shortcomings is key to a thoughtful migration strategy. Can organizations really save money by replacing their on-premise solutions? How do they comply with regulations around the world addressing the collection, use and transfer of personal data? When migrating, do they retain control of their systems? What about cyber security? Here’s a simplified description for non-technologists!
As companies continue to implement mobile health apps, aggregate clinical trial results, and isolate disease through computer modeling, they are also focused on possible risks. Harnessing cloud technology gives rise to a constant concern about keeping sensitive data secure.
Medicine has led the drive for nimble handling and accessibility of information. Electronic health records and clinical decision support have been widely adopted. Physician order entry facilitates scrutiny of outcomes. Stats can be compared thanks to industry standards for sharing. Devices for patient compliance and fitness provide value by accumulating user information to assess individual results and detect trends. Finally, better processing power can employ sophisticated algorithms to sift hundreds of millions of compounds and billions of DNA base pairs in a quest to discover drug targets.Continue Reading Your Health in the Cloud
Written by Jonathan A. Beckham, with assistance from Audrey T. Borisov, Kedrick N. Eily, and Angela F. Ramson.
In July 2014, the International Organization for Standardization (ISO) published ISO 27018, which sets forth standards and guidelines pertaining to the protection of personal data stored and processed on the cloud. In this Alert