Open Access. Powered by Scholars. Published by Universities.®

Law Commons

Open Access. Powered by Scholars. Published by Universities.®

Taxation-Transnational

University of Michigan Law School

Articles

2008

Residences

Articles 1 - 2 of 2

Full-Text Articles in Law

A Coordinated Withholding Tax On Deductibility Payments, Reuven S. Avi-Yonah Jun 2008

A Coordinated Withholding Tax On Deductibility Payments, Reuven S. Avi-Yonah

Articles

Prof. Avi-Yonah proposes a 35 percent withholding tax on deductible payments made to a non-U.S. resident, in coordination with other OECD members. The tax is aimed at U.S. residents posing as foreign investors and would be refundable when the beneficial owner shows that the payments have been reported to tax authorities in the owner’s country of residence.


Back To The Future? The Potential Revival Of Territoriality, Reuven S. Avi-Yonah Jan 2008

Back To The Future? The Potential Revival Of Territoriality, Reuven S. Avi-Yonah

Articles

Since 1994, the trend in the United States and other developed countries appears to be to reduce the scope of residence jurisdiction and increase the emphasis on source jurisdiction. If this trend continues, these countries are likely to move toward territoriality and decrease the emphasis on their CFC rules. In the author’s opinion, the reason for this trend is political and economic, not legal. It is part of tax competition, specifically the competition to be the headquarters jurisdiction for multinationals. The author also thinks, however, that it is not necessary to go down this road because the solution to the …