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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 …
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 …
Commentary: More Open Issues Regarding The Consolidated Corporate Tax Base In The European Union, Reuven S. Avi-Yonah, Kimberly A. Clausing
Commentary: More Open Issues Regarding The Consolidated Corporate Tax Base In The European Union, Reuven S. Avi-Yonah, Kimberly A. Clausing
Articles
It is an honor to comment on the article by Jack Mintz and Joann Weiner.' Both of the authors have a deeply knowledgeable background in this area. The paper that Jack Mintz published (with Michael Smart) in 2004 on provincial taxation in Canada is one of the most careful and interesting papers in all of international taxation.2 And Joann Weiner has clearly been studying formulary apportionment for a very long time, from both U.S. and European perspectives.