The Untold Story Of Crane V. Commissioner Reveals An Inconvenient Tax Truth: Useless Depreciation Deductions Cause Global Basis Erosion To Bait A Hazardous Tax Trap For Unwitting Taxpayers, 2010 SelectedWorks
The Untold Story Of Crane V. Commissioner Reveals An Inconvenient Tax Truth: Useless Depreciation Deductions Cause Global Basis Erosion To Bait A Hazardous Tax Trap For Unwitting Taxpayers, I Jay Katz
Irwin J Katz
Facts not discussed in the Supreme Court's decision in Crane v. Commissioner (much better known for Footnote 37) reveal an inconvenient tax truth of a hazardous tax trap for unwitting taxpayers (the "Basis Reduction Tax Trap"). For seven years, Beulah Crane operated an apartment building at a loss. For that reason, the substantial amount of allowable depreciation deductions on the building produced minimal tax benefits for her. Notwithstanding the lack of tax benefits, the basis of the apartment building was reduced by the depreciation deductions pursuant to section 1016(a) (2) of the Internal Revenue Code. Under threat of ...
International Capital Taxation., 2010 Institute for Fiscal Studies
International Capital Taxation., Rachel Griffith, James R. Hines Jr., Peter Birch Sørensen
Globalization carries profound implications for tax systems, yet most tax systems, including that of the UK, still retain many features more suited to closed economies. The purpose of this chapter is to assess how tax policy should reflect the changing international economic environment. Institutional barriers to the movement of goods, services, capital, and (to a lesser extent) labour have fallen dramatically since the Meade Report (Meade, 1978) was published. So have the costs of moving both real activity and taxable profits between tax jurisdictions. These changes mean that capital and taxable profits in particular are more mobile between jurisdictions than ...
Reforming 501(C)(3): Putting The "Charity" Back In The Charitable Deduction, 2010 University of Richmond
Reforming 501(C)(3): Putting The "Charity" Back In The Charitable Deduction, Jennifer Mccrabb Black
Law Student Publications
This paper seeks to lay out a proposal to redefine what it takes to receive tax-deductible donations. Part II of this paper will summarize the current state of the law as it applies to the charitable contribution deduction and the qualification for tax exemption under the Internal Revenue Code. Part III discusses the Charities Act 2006, a recent British act aimed at attempting to redefine charity for England and Wales by requiring organizations to prove that they provide a public benefit before receiving the benefits of being a charity. Part IV proposes additions and changes to the Internal Revenue Code ...
Rethinking Treaty Shopping: Lessons For The European Union, 2010 University of Michigan Law School
Rethinking Treaty Shopping: Lessons For The European Union, Reuven S. Avi-Yonah, C. H. Panayi
Whilst treaty shopping is not a new phenomenon, it remains as controversial as ever. It would seem that the more countries try to deal with it, the wider the disagreements as to what is improper treaty shopping and what is legitimate tax planning. In this paper, we reassess the traditional quasi-definitions of treaty shopping in an attempt to delineate the contours of such practices. We examine the various theoretical arguments advanced to justify the campaign against treaty shopping. We also consider the current trends in treaty shopping and the anti-treaty shopping policies under the OECD Model and the US Model ...
Networks, Norms, And National Tax Policy, 2010 University of Wisconsin Law School
Networks, Norms, And National Tax Policy, Allison Christians
Washington University Global Studies Law Review
Increasing economic integration inevitably draws states to coordinate their tax policies, yet policymakers are eager to protect their autonomous “tax sovereignty.” Cooperation and autonomy are balanced in transnational networks, especially the OECD, where state representatives, experts, and interest groups engage in continuous negotiation to develop nonbinding, or “soft” global tax policy norms. While the merits of these norms have prompted much scholarly analysis, little is understood about the nature and significance of using networks to develop tax policy norms in this manner. This Article demonstrates how and why states use the unique soft governance structure of the OECD to develop ...
Running From The United States Treasury: The Need To Reform The Taxation Of Multinational Corporations, 43 J. Marshall L. Rev. 1041 (2010), Jennifer Barton
The John Marshall Law Review
No abstract provided.
Treasure Islands, 2010 University of Michigan Law School
Treasure Islands, James R. Hines Jr.
In movies and novels, tax havens are often settings for shady international deals; in practice, they are rather less flashy. Tax havens are countries and territories that offer low tax rates and favorable regulatory policies to foreign investors. For example, tax havens typically tax inbound investment at zero or very low rates and further encourage investment with telecommunications and transportation facilities, other business infrastructure, favorable legal environments, and limited bureaucratic hurdles to starting new firms. Tax havens are small: most are islands; all but a few have populations below one million; and they have above-average incomes. Tax havens are also ...
Between Formulary Apportionment And The Oecd Guidelines: A Proposal For Reconciliation, 2010 University of Michigan Law School
Between Formulary Apportionment And The Oecd Guidelines: A Proposal For Reconciliation, Reuven S. Avi-Yonah
In the last 30 years, a debate has been raging in international tax circles between advocates of the OECD Transfer Pricing Guidelines and the arm’s length standard (ALS) they embody, on the one hand, and advocates of formulary apportionment (FA) on the other. After the adoption of the 1995 regulations and the new OECD Guidelines, the debate became quieter for a while, because everyone was waiting to see whether the issue had been resolved. However, while there have been few decided cases, it is clear by now that the transfer pricing problem is as bad as it ever was ...
Reply To Becker And Fuest, 2010 University of Michigan Law School
Reply To Becker And Fuest, James R. Hines Jr.
It is an understatement to say that the appropriate taxation of foreign business income is a controversial and potentially confusing topic. One of the mysteries of international taxation has been that the prescriptions of what, until recently, was the accepted academic wisdom differs so sharply from widespread international practice. In an important contribution, Richman (1963) noted that a home government confronted with the choice of where it would prefer one of its resident taxpayers to allocate a single unit of capital would weigh the after-foreign-tax return from investing abroad against the pre-tax return from investing at home. From this observation ...
Comparative Tax Law: Theory And Practice, 2010 University of Michigan Law School
Comparative Tax Law: Theory And Practice, Reuven S. Avi-Yonah, Guy Inbar, Omri Marian, Linneu Mello
On 3 October 2009, a Conference on Comparative Tax Law in Theory and Practice took place at the University of Michigan Law School. It was organized by Reuven Avi-Yonah (Professor, University of Michigan Law School) and Mathias Reimann (Editor, American Journal of Comparative Law and Professor, University of Michigan Law School), and was attended by Hugh Ault (Professor of Law, Boston College Law School), Victor Thuronyi (Senior Counsel, International Monetary Fund), Brian Arnold (Professor Emeritus, University of Western Ontario), William Barker (Professor, The Dickinson School of Law, Penn State), Michael Livingston (Professor, Rutgers School of Law-Camden), Carlo Garbarino (Professor of ...
Credit Vs. Exemption: A Comparative Study Of Double Tax Relief In The United States And Japan, 2010 Northwestern Pritzker School of Law
Credit Vs. Exemption: A Comparative Study Of Double Tax Relief In The United States And Japan, Lawrence Lokken, Yoshimi Kitamura
Northwestern Journal of International Law & Business
The overriding issue in international taxation is the problem of double taxation. Under the tax laws of most countries, income may be taxed on the basis of either residence or source. That is, a country may tax residents of the country on worldwide income and may tax nonresidents on income from sources within the country. Thus, if a resident of one country has income from a business activity or investment in another country, the person may be taxed on the income on a residence basis by its home country and on a source basis in the other country. Most countries ...
Revisiting Global Formulary Apportionment, 2010 UC Hastings College of the Law
Revisiting Global Formulary Apportionment, Susan C. Morse
No abstract provided.
A Comprehensive Theory Of Deal Structure: Understanding How Transactional Structure Creates Value, 2010 University of Pennsylvania Law School
A Comprehensive Theory Of Deal Structure: Understanding How Transactional Structure Creates Value, Michael S. Knoll, Daniel M. G. Raff
No abstract provided.
Recent Treaty Developments In The Arbitration Of International Tax Disputes, 2009 Boston College Law School
Recent Treaty Developments In The Arbitration Of International Tax Disputes, Hugh Ault
Hugh J. Ault
No abstract provided.
The Economy Of Undocumented Migration: Taxation And Access To Welfare, 2009 Selected Works
The Economy Of Undocumented Migration: Taxation And Access To Welfare, Mats Tjernberg
A strict division between the formal economy and the informal economy cannot be made and every economic actor has in certain situations a propensity to engage in informal economic activities. The formal, as well as informal, economy may lead to economic growth which is essential for a broad welfare policy, under which social benefits are categorized. A person’s economic contribution to a state should entail some possibility of getting economic and social benefits from it. The article shows that a person, who is liable to tax in a state, by staying in its territory, should not be excluded from ...
Comparative Income Taxation: A Structural Analysis, 2009 Boston College Law School
Comparative Income Taxation: A Structural Analysis, Hugh Ault, Brian Arnold
Hugh J. Ault
The purpose of this book is to compare different solutions adopted by nine industrialized countries to common problems of income tax design. As in other legal domains, comparative study of income taxation can provide fresh perspectives from which to examine a particular national system. Increasing economic globalization also makes understanding foreign tax systems relevant to a growing set of transnational business transactions. Comparative study is, however, notoriously difficult. Full understanding of a foreign tax system may require mastery not only of a foreign language, but also of foreign business and legal cultures. It would be the work of a lifetime ...