Silicon Shaman wrote:

 > I can see the logic of that .. but how on earth does Linden labs
 > pull it off then? and if they can, why can't we?

Well, tax offices around the world are indeed starting to look at Second 
Life and ruling on the taxability of profits users make there, precisely 
because converting Linden dollars into real world money or goods is a 
supported part of the game.  At the moment it isn't a large enough 
business to really make it worth the revenue collectors' time to pursue 
players, but eventually it will be, and once the rules and mechanisms 
for taxing them are in place it's likely they'll be more widely applied.

It's one of those situations where bureacuracy is just starting to catch 
up with technology.

love
Anna

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