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The South American country of Guyana plans to close hundreds of Internet cafes that it accuses of bypassing the telephone company system to offer cheap international calls.
The Revenue Authority accuses the cafes of tax evasion because they do not charge sales tax or other fees for calls made through Internet-based phone services like Skype, Vonage and Packet8.
Several countries have made moves to block or stifle phone calls over the Internet because they bypass taxation and local phone monopolies. Software that sniffs out phone calls has been used in Saudi Arabia, Egypt and China among others. U.S. regulators prohibit the blocking of Internet calls.
