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Full-Text Articles in Law
Enforcing Dividend Withholding On Derivatives, Reuven S. Avi-Yonah
Enforcing Dividend Withholding On Derivatives, Reuven S. Avi-Yonah
Articles
The United States imposes a 30 percent withholding tax on dividends paid to nonresident aliens. However, this tax is rarely paid by portfolio investors because they can swap into U.S. securities, receiving payments to match both capital gain and dividends. Treasury has ruled that swap payments have an origin in the taxpayer’s residence so there is no withholding obligation on payments that match dividends. The proposal would impose withholding tax on dividend equivalents on the ground that there is no policy justification for a distinction between dividends, substitute dividends under securities lending transaction (which are treated as dividends and are …
Inter-Nation Equity: The Development Of An Important But Underappreciated International Tax Value, Kim Brooks
Inter-Nation Equity: The Development Of An Important But Underappreciated International Tax Value, Kim Brooks
Articles, Book Chapters, & Popular Press
Modern high-income states have relied on income taxes and redistributive spending to reduce inequality nationally; yet few states have considered how their national tax systems might have important implications for international income flows between high-income and low-income states and how their tax treaties might be used as a mechanism for achieving a fairer distribution of income internationally. Discussions about the possibilities of tax systems as a means of distributing income globally, and of acting in the service of the reduction of global inequality, are nascent, but not new. The foundational, and still leading, contribution to this area of scholarship is …
Foreign Income And Domestic Deductions, James R. Hines Jr.
Foreign Income And Domestic Deductions, James R. Hines Jr.
Articles
To what extent should taxpayers deduct expenses incurred domestically that contribute to foreign income production? It is widely believed that if the home country does not tax foreign income, then it also should not permit deductions for that portion of domestic expenses attributable to earning foreign income. This prescription is, however, inconsistent with the decision to exempt foreign income from taxation in the first place. The paper shows that, for any system of taxing foreign income, the consistent and efficient treatment is to permit domestic expense deductions for all expenses incurred domestically. This differs from the current U.S. regime, under …