The rise of e-commerce has a high impact and new questions on taxation policy and administration. E-commerce makes it easier for business to be conducted without creating the “Permanent establishment using bricks and mortar” that would otherwise subject a seller to tax on income. It blurs the distinctions between the sale of goods, the provision of services and the licensing of intangible assets, each of which is subject to some form of taxation. Rapid developments in information technology have not only had an impact on assessing tax liability and collecting revenue, but on the state’s ability to identify the growing number of taxable transactions that take place in cyberspace. This paper explores on e-commerce and some issues on tax evasion.