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Full-Text Articles in Law
The Continued Viability Of Foreign Sales Corporations (Fscs): An Analysis Of The Wto Decision Declaring Fscs Incompatible With Gatt Trading Rules, Brenda O'Leary
San Diego International Law Journal
Most major trading nations have features in their income tax laws that favor exports. The United States has adopted such a scheme of preferential treatment of foreign income in order to provide incentives for the export of U.S.-produced goods. However, such devices that reduce income taxes for U.S. exporters have been openly criticized by the international community as illegal export subsidies which are incompatible with the General Agreement on Tariffs and Trade (GATT). In fact, the U.S. enacted its current Foreign Sales Corporation (FSC) legislation in the Tax Reform Act of 1984 to conform the Domestic ...
Treating Tax Issues Through Trade Regimes (Symposium: International Tax Policy In The New Millennium), Reuven S. Avi-Yonah
Professor Paul R. McDaniel has performed an extremely valuable service in clarifying the relationship between trade and tax law. In particular, he has done so by pointing out that, to a large extent, the two spheres do not overlap, much less clash in their objectives. This makes sense because, fundamentally, the goal of trade law is to facilitate trade, while the goal of tax law is to raise revenue. Thus, for example, an ideal tariff under trade law is set at zero, but an ideal tax under tax law is set at some positive rate. It therefore should not be ...