Understanding Code Ownership in Tax Audits

In this study, we explore how software companies can describe their globally distributed architectures to comply with tax regulations. Our research reveals that while the description fulfills its main purpose, there are some limitations and potential misunderstandings.
The interviewees praised the fact-driven nature of our description, which provides objective details about technical aspects without any subjective interpretation. However, they also cautioned against misinterpreting the numerical values presented, as they may not accurately reflect the relevance of each component.
One major issue is that the quantitative representation of the graph and table can lead to misunderstandings regarding the value added by each software product component. Our experts emphasized that considering all components equal is not a valid simplification, as it neglects the classification of these components.
Another concern is the definition of ownership, which can be too vague and may trigger legal discussions beyond the scope of this study. We conclude that our understanding of accountability falls short and does not suffice the legal accountability required. Future research should address the legal aspects of code ownership.
Our simulation demonstrates how software companies can describe their globally distributed architectures to comply with tax regulations. Participants were asked to imagine themselves in a tax audit scenario, which helped us observe and measure the usefulness and completeness of an architecture description for tax compliance.
In summary, our study shows that while there are some limitations to the current software architecture description, it fulfills its main purpose to provide objective details about technical aspects. However, we must be cautious when interpreting numerical values and clarify the definition of ownership to avoid legal issues. By improving these areas, software companies can better comply with tax regulations through effective architecture descriptions.