Tax Law Commons^™

Case Digest, Law Review Staff

Vanderbilt Journal of Transnational Law

EMPLOYEE WHO SPENDS "SOME PORTION OF WORK TIME IN MARITIME ACTIVITIES" IS AN "EMPLOYEE" COVERED BY THE LONGSHOREMEN'S AND WORKERS' COMPENSATION ACT-Schwabenland v.Sanger Boats, 683 F.2d 309 (9th Cir. 1982)

UNITED STATES CARRIAGE OF GOODS BY SEA ACT EXEMPTS DEFENDANT FROM LIABILITY FOR SHIP DAMAGE INCURRED WHILE DISCHARGING CARGO--Seven Seas Transportation Ltd. v. Pacifico Union Marina Corp. [1982] 2 Lloyd's L.R. 465

IMMIGRATION AND NATURALIZATION SERVICE DISTRICT DIRECTOR IS ENTITLED TO BROAD DISCRETION IN WEIGHING CRITERIA FOR PAROLE DETERMINATION OF UNADMITTED ALIENS--Bertrand v. Sava,684 F.2d 204 (2d Cir. 1982)

THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT DOES NOT APPLY TO …

Legal Issues Relating To The Canadian National Energy Program, Jean-Paul Lacasse

Vanderbilt Journal of Transnational Law

Since its unveiling on October 28, 1980, Canada's National Energy Program has been commented upon abundantly in government circles, newspaper articles, trade magazines, and financial industry seminars, drawing both oil industry and foreign reactions. It has received less notice in scholarly publications, however, perhaps because it is a complex and continuously changing program that did not become effective until legislation was enacted. The purpose of this Article is to sketch a broad picture of the National Energy Program (NEP) while focusing on its Canadianization aspects, the new oil and gas taxation situation, and the Program's various transnational law implications. As …

Case Digest, Law Review Staff

Vanderbilt Journal of Transnational Law

APPLICATION OF UNITED STATES LAW TO A FOREIGN SEAMAN'S SUIT DEPENDS UPON THE SUBSTANTIALITY OF THE FOREIGN DEFENDANT'S CONTACTS WITH THE UNITED STATES--Szumlicz v. Norwegian America Line, Inc., 698 F.2d 1192 (11th Cir. 1983).

RECOVERY PURSUANT TO THE FISHERMEN'S PROTECTIVE ACT FOR LOSSES RESULTING FROM SEIZURE OF VESSLS FISHING IN DISPUTED WATERS Is NOT LIMITED TO CITIZENS AND RESIDENT ALIENS OF THE UNITED STATES-CrUZ V. Zapata Ocean Resources, Inc., 695 F.2d 428 (9th Cir. 1982).

UNITED STATES SUPPORT OF CANADIAN SEARCH OF UNITED STATES VESSEL ON THE HIGH SEAS DID NOT VIOLATE DEFENDANT'S FOURTH AMENDMENT RIGHTS--United States v. Hensel, 699 …

Books Received, Law Review Staff

Vanderbilt Journal of Transnational Law

Casebook on Carriage by Sea.

By E.R. Hardy Ivamy

London: Lloyd's of London Press, 1982. Pp. xxxix, 203. £11.50.

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Casebook on Shipping Law

By E.R. Hardy Ivamy

London: Lloyd's of London Press, 1982. Pp. xxx, 205. £11.50.

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Regional Development Agencies in Europe

Edited by Douglas Yuill

Hampshire, England: Gower, 1982. Pp. vii, 449.$44.50.

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United States Trade Policy Legislation: A Canadian View

By Rodney de C. Grey

Montreal: The Institute for Research on Public Policy, 1982. Pp. xvii, 130. $7.95.

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Transfer of Technology: U.S. Multinationals and Eastern Europe

By Marilyn L. Liebrenz

New York: Praeger Publishers, 1982. …

International Tax Evasion: Spawned In The United States And Nurtured By Secrecy Havens, Allaire U. Karzon

Vanderbilt Journal of Transnational Law

The United States system of income taxation is predicated upon the voluntary self-assessment and payment of tax. Voluntary compliance, in turn, depends upon the confidence of United States citizens that the taxation system is basically fair, that the tax burden essential to maintain the government is shared by all in proportion to their net income, and that those who cheat are discovered and prosecuted. Circumstances that allow certain taxpayers to escape their proper tax liability successfully tempt others to seek tax evasion devices for themselves, and, more importantly, demoralize the conscientious majority who pay their just share of taxes but …

United States Employment Taxation Of German Nationals Working In The United States, John L. Gornall, Jr., Kevin Conboy

Vanderbilt Journal of Transnational Law

This Article begins with a discussion of the general application of FICA, SECA, and FUTA to nonresident aliens. Knowledge of the ordinary United States employment taxation scheme is necessary for an understanding of how the totalization agreement works.

The second part of this Article explains how totalization agreements between the United States and certain foreign countries--including the Federal Republic of Germany--have altered the United States employment taxation of nonresident aliens. These agreements generally provide the following: (1) the foreign worker and employer may pay taxes and receive benefits from either the home country or the temporary host country, but in …

Case Digest, Law Review Staff

Vanderbilt Journal of Transnational Law

FORCED ENTRY OF THE SINGLE CABIN OF A 27-FOOT SAILING SLOOP TO CONDUCT A DOCUMENT AND SAFETY INSPECTION Is NOT AN UNREASONABLE SEARCH--United States v. Thompson, 710 F.2d 1500(11th Cir. 1983).

EXCLUDABLE ALIENS HAVE A CONSTITUTIONAL RIGHT TO A HEARING AFTER THE INITIAL PERIOD OF DETENTION--Fernandez-Roque v. Smith, 567 F. Supp. 1115 (N.D. Ga. 1983).

EXCLUSIONARY RULE BARs USE IN DEPORTATION PROCEEDINGS OF EVIDENCE OBTAINED BY INS OFFICERS IN VIOLATION OF THE FOURTH AMENDMENT--Lopez-Mendoza v. Immigration and Naturalization Service, 705 F.2d 1059 (9th Cir. 1983) (en banc).

LABOR UNION HAS STANDING TO MAINTAIN ACTION FOR VIOLATION OF DUE PROCESS RIGHTS …

Books Received, Journal Staff

Vanderbilt Journal of Transnational Law

Books Received

Utilization of Outer Space and International Law

Gijsbertha C.M. Reijnen.

Amsterdam and New York: Elsevier Scientific Publishing Company, 1981. Pp. 179, $69.75.

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International Estate Planning

William H. Newton, III.

Colorado Springs: Shepard's/McGraw-Hill Company, 1981. Pp. 614.

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International Tax Avoidance and Evasion, Colloquy of the Council of Europe, Strasbourg, 1980

Publication 31, Publications of the International Bureau of Fiscal Documentation Amsterdam: International Bureau of Fiscal Documentation, 1981. Pp.184, Dfl. 65.00.

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Fiscal Reform in Bolivia: Final Report on the Bolivian Mission on Tax Reform Richard A. Musgrave

Cambridge: Harvard Law School International Tax Program, 1981. Pp. 593, …

Tax Havens, Charles R. Irish

Vanderbilt Journal of Transnational Law

Opinions about tax havens cover a wide spectrum. Some suggest tax havens present an unacceptable face of capitalism and inflict considerable damage on the economies of nonhaven countries. Others argue that havens offer relief from oppressive taxes and other regulations which inhibit the free and efficient flow of capital; and still others hold the view that tax haven status may act as a catalyst for economic development. Obviously, the opinions vary according to whether a person is a tax collector in a non-haven country, a taxpayer engaged in international business activities, or a government policymaker in a haven country.

The …

Case Digest, Journal Staff

Vanderbilt Journal of Transnational Law

Carrier Who Employs Stevedore under a Long-Term Contract is Vicariously Liable to Cargo Owner for Stevedore's Mishandling of Cargo even after Unloading and Storage

Vessel Owner Denied Duty Remission because of Procedural Failure in Filings with Customs Service

Wife of Harbor Worker Injured Nonfatally in State Territorial Waters May Maintain Action for Loss of Husband's Society

Corporation may Qualify for Tax Treatment as a Western Hemisphere Trade Corporation even though Incidental Purchases are Made Outside the Hemisphere

Importation or Receipt of Goods from the United States Confirmed by Telex to Plaintiff in United States Insufficient Contacts to Establish Personal Jurisdiction …

Books Received, Journal Staff

Vanderbilt Journal of Transnational Law

THE MIDDLE EASTERN STATES AND THE LAW OF THE SEA

By Ali A.El-Hakim

Syracuse: Syracuse University Press, 1979. Pp. 293.Tables, maps, and international agreements.

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COMPLIANCE AND PUBLIC AUTHORITY: A THEORY WITH INTERNATIONAL APPLICATIONS

By Oran R. Young

Baltimore: Resources for the Future, 1979. Pp. 161.

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DOING BUSINESS WITH THE Russians

Under license from Westshore, Inc. New York: Praeger Publishers, 1978. Pp. 166.

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TAX LAW AND POLICY IN THE E.E.C.

By Alexander James Easson

London: Oceana Publications, 1980. Pp. 269. Tables of treaty provisions, secondary legislation, cases, and statistics.

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THE COLLAPSE OF WELFARE REFORM: POLITICAL INSTITUTIONS, POLICY …

Book Reviews, Edward C. Brewer, Iii., W. Paul Gormley, Allaire U. Karzon.

Vanderbilt Journal of Transnational Law

DIRECT INVESTMENT AND DEVELOPMENT IN THE U.S.: A GUIDE TO INCENTIVE PROGRAMS, LAWS AND RESTRICTIONS 1980-1981

Raymond Waldmann

Washington D.C.: Transnational Investments, Ltd.; London: Kluwer Publishing, 1980. Pp. viii, 443. $75.00, London £45 plus £1 surface mail.

Reviewed by Edward C. Brewer, III.

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NUCLEAR ENERGY AND NUCLEAR WEAPON PROLIFERATION

Frank Barnaby, Jozef Goldblat, Bhupendra Jasani, and Joseph Rotblat,eds. Published for the Stockholm International Peace Research Institute. London: Taylor & Francis, 1979. Pp. xxiv, 462.

Reviewed by W. Paul Gormley

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INTERNATIONAL ASPECTS OF U.S. INCOME TAXATION Vois. I and III

Elisabeth Owens Boston, Mass.: Harvard Law School, 1980. Pp.305. …

Recent Decisions, Kevin P. Hishta, J. Clifton Cox, Shari D. Olenick, Stephen B. Hatcher, Ann M. Bell

Vanderbilt Journal of Transnational Law

ALIENS--Executive Suspension of Alien's Deportable Status Final as Congressional Veto Mechanism violates Constitutional Doctrine of Separation of Powers

Kevin P. Hishta

--------------------------- Sovereign Immunity--Iranian Immunity from Pre-Judgment Attachments Terminated under International Emergency Economic Powers Act

J. Clifton Cox

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Sovereign Immunity--Government Shipping Company of the People's Republic of China is an "Agency or Instrumentality" for the Purposes of the Foreign Sovereign Immunities Act of 1976

Shari D. Olenick

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State Corporate Income Tax--Foreign Source Dividends Included in State Taxation Base Under Unitary Business Enterprise Test

Stephen B. Hatcher

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Trade Regulation--Use of Registered Mail by Federal Trade Commission to Subpoena …

Domestic International Sales Corporations (Discs): How They Provide A Tax Incentive For Exports, Garrison R. Cox

Vanderbilt Journal of Transnational Law

This Note examines the logical and empirical validity of the reasons for the passage of the DISC legislation. Basically, the DISC legislation was prompted by the negative trade balance in 1971, a novel phenomenon in post-World War II United States. Providing a tax break on producers' export income was viewed as a way of reducing trade deficits by stimulating exports. On its surface, using "tax expenditures" to reach this goal seems logical, or at least benign. But when one considers that the primary thrust of the legislation was to encourage small producers to enter the export market, the logic of …

Books Received, Journal Staff

Vanderbilt Journal of Transnational Law

THE HOST STATE AND THE TRANSNATIONAL CORPORATION: AN ANALYSIS OF LEGAL RELATIONSHIPS

By Juha Kuusi

Farnborough, England: Saxon House, 1979. Pp. 177. $25.25 (Distributed by Renouf USA, Brookfield, Vermont.)

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THE INDIRECT CREDIT Vol. II

By Gerald Ball and Elizabeth A.Owens

Cambridge, Mass.: The International Tax Program, Harvard Law School, 1979. Pp. 406. $40.00.

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JURIDICA: ANUARIO DEL DEPARTAMENTO DEL DERECHO DE LA UNIVERSIDAD IBEROAMERICANA

Edited by Enrique Portilla Osio Mexico City: Universidad Iberoamericano. 1978. Pp. 595.

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LES SANCTIONS PRIVATES DE DROITS Ou DE QUALITE DANS LES ORGANISATIONS INTERNATIONALES SPECIALISEES

By Charles Leben Brussels: Emile Bruylant. 1979. Pp. 410. …

Recent Decisions, Jamie S. Martin, Margaret H. Fiorillo, J. Andrew Hoyal, Ii

Vanderbilt Journal of Transnational Law

CONSTITUTIONAL LAW--COMMERCE CLAUSE--STATE TAX ON INSTRUMENTALITIES OF FOREIGN COMMERCE INVALID WHEN TAX RESULTS IN MULTIPLE TAXATION AND IMPAIRS FEDERAL UNIFORMITY IN REGULATION OF FOREIGN TRADE

Jamie S. Martin

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IMMIGRATION--LAWFUL UNRELINQUISHED DOMICILE--DEPORTABLE RESIDENT ALIEN MUST ACCUMULATE SEVEN YEARS OFLAWFUL DOMICILE SUBSEQUENT TO ADMISSION FOR PERMANENT RESIDENCE TO BE ELIGIBLE FOR DISCRETIONARY RELIEF

Margaret H. Fiorillo

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LONGSHOREMEN'S AND HARBOR WORKERS' COMPENSATION ACT--MANUFACTURER MAY SUE STEVEDORE FOR INDEMNIFICATION FROM LIABILITY ARISING OUT OF LONGSHOREMEN'S INJURIES--THEORY OF EQUITABLE CREDIT DOES NOT APPLY TO THE LHWCA

J. Andrew Hoyal, II

Recent Decisions, Lloyd F. Leroy, Shelley B. O'Neill, Thomas E. Settles

Vanderbilt Journal of Transnational Law

Commodity Futures Trading Commission Act of 1974--Commodity Futures Trading Commission Regulating that Restrict Dealers in Foreign Options More Severely than Dealers in Futures Contracts are not Arbitrary or Capricious

Lloyd F. LeRoy

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Customs--Countervailing Duties--Rebates of Nonexcessive Excise Taxes Do Not Constitute a Bounty Subject to Countervailing Duties

Shelley B. O'Neill

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Jurisdiction--Exercise of in REM and Quasi in Rem Jurisdiction Justified only Where International Shoe Minimum Contacts Standard is Satisfied

Thomas E. Settles

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SECURITIES REGULATION--Extraterritorial Application of the Anti-fraud Provisions--Federal Securities Laws Grant Jurisdiction When There is Some Activity in Furtherance of a Fraudulent Scheme Committed Within the …

Foreign Accumulation Trusts And The Tax Reform Act Of 1976, David H. Simmons

Vanderbilt Journal of Transnational Law

If the foreign trust is not a grantor trust under the Grantor Trust Provisions (sections 671-679), then the new Act creates several new disparities in the tax treatment between it and a corresponding domestic accumulation trust. Domestic accumulation trusts are no longer subjected to a capital gains throw back, while capital gains of foreign trusts are included in DNI, subject to throw back, and then taxed as ordinary income to the beneficiary because of the abolition of the character rules upon accumulation distribution. Foreign trusts are subjected to throw back of accumulation distributions even though the accumulation was during the …

Recent Decisions, William W. Allen, Alexander A. Hassani, Peter A. Schuller

Vanderbilt Journal of Transnational Law

INCOME TAX--LIQUIDATION OF FOREIGN CORPORATIONS--SHAREHOLDERS IN A LIQUIDATING FOREIGN CORPORATION MUST INCLUDE IN THE CORPORATION'S EARNINGS AND PROFITS ACCOUNT THE AMOUNT OF RECAPTURED EXCESS DEPRECIATION REALIZED UPON THE SALE OF ITS ASSETS

William W. Allen

CUSTOMS DUTIES--ANTIDUMPING ACT OF 1921--THE SECRETARY OF THE TREASURY HAS No AUTHORITY TO TERMINATE A WITH-HOLDING OF APPRAISEMENT PRIOR TO THE PUBLICATION OF A DUMPING FINDING BASED ON A LIKELIHOOD OF INJURY DETERMINATION BY THE INTERNATIONAL TRADE COMMISSION

Alexander A. Hassani

INTERNATIONAL BANKING--BANKRUPTCY-FOREIGN BANKS NEITHER REGULATED BY NOR LICENSED To Do BUSINESS IN THE UNITED STATES MAY FILE FOR VOLUNTARY BANKRUPTCY UNDER THE NATIONAL BANKRUPTCY …

Books Received, Journal Staff

Vanderbilt Journal of Transnational Law

A Practical Guide to U.S. Taxation of Overseas Americans

By Thomas E. Johnson

London: Raftwain Ltd., 1977. Pp. 311. $25.00.

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The Impact of International Organizations on Legal and Institutional Changes in the Developing Countries

New York: International Legal Center, 1977. Pp. 275.

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U.S. Customs Tariffs and Trade

By Eugene T. Rossides

Washington, D.C.: The Bureau of National Affairs, Inc., 1977. Pp. 826. $45.00.

Recent Decisions, Steven A. O'Rourke, Henry C. Wood, Jr., Christopher Ryan, Phyllis K. Fong, Clifford D. Harmon

Vanderbilt Journal of Transnational Law

Admiralty--Workmen's Compensation--Longshoremen's and Harbor Workers' Compensation Act covers Waterfront Injuries to Cargo Handlers Who sometimes work Offshore or Who unpack Containers

Steven A. O'Rourke

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European Communities--Restrictive Practices--Abuse of Dominant Position--Discriminatory or Unfair Pricing Policies among EEC Customers by a Corporation in a Dominant Market Position Infringes Article 86 of the EEC Treaty

Henry Clay Wood, Jr.

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Federal Jurisdiction--State Regulation of Interstate Commerce--Federal Courts have Jurisdiction to Enjoin State Officials from Enforcing State Laws Regulating Interstate Tanker Trade where Congress intended that Federal Regulations Pre-empt the Area

Christopher Ryan

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Securities Regulation--Jurisdiction--Allegations that an International Securities Transaction involving Stock …

Recent Decisions, John E. Drake, Heidi A. Rohrbach, John R. Hellinger, Elizabeth G. Browning

Vanderbilt Journal of Transnational Law

CHOICE OF LAW--WRONGFUL DEATH--GOVERNMENTAL-INTEREST ANALYSIS DETERMINES LAW APPLICABLE TO MEASURE OF DAMAGES IN CLAIMS ARISING FROM FOREIGN Air CRASH

John Edison Drake

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EUROPEAN COMMUNITIES--FREE MOVEMENT OF WORKERS--COURT OF JUSTICE SETS GUIDELINES FOR USE BY MEMBER STATES OF THE PUBLIC POLICY EXCEPTION IN ARTICLE 48

Heidi A. Rohrbach

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TAX TREATIES--UNITED STATES MAY USE THE INTERNAL REVENUE CODE SUMMONING AUTHORITY TO OBTAIN DOMESTIC INFORMATION SOLELY TO AID A FOREIGN DOMESTIC TAX INVESTIGATION PURSUANT TO A TAX TREATY

John R. Hellinger

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TREATY INTERPRETATION--WARSAW CONVENTION-- PASSENGERS UNDERGOING SEARCH PREREQUISITE TO BOARDING ARE ENGAGED IN OPERATIONS OF EMBARKING

Elizabeth Graeme Browning

The Role Of The Corn Products Doctrine In Foreign Exchange Transactions, Charles H. Manning

Vanderbilt Journal of Transnational Law

Exchange rate gain or loss may result from fluctuations of exchange rates or from formal governmental action such as revaluation and devaluation. In evaluating the significance of foreign exchange transactions and their tax consequences, the types of transactions that produce exchange rate gain or loss must be distinguished. The first type of transaction is currency speculation in which exchange rate gain or loss is the only profit or loss realized. The second type of transaction involves the purchase and sale of inventory in which the exchange rate gain or loss is ancillary to the monetary gain or loss realized on …

Case Digest, Journal Staff

Vanderbilt Journal of Transnational Law

1. ADMIRALTY

STOWAGE OF CONTAINERIZED CARGO ABOVE-DECK IS NOT AN UNREASONABLE DEVIATION FROM A CLEAN BILL OF LADING UNLESS BELOW-DECK STOWAGE IS ORDINARILY CONTEMPLATED

EMPLOYEE TEMPORARILY ASSIGNED AS CREWMAN IN MOTORBOAT IS NOT A JONES ACT SEAMAN

UNITED STATES CAN CHARGE A BERTHING AGENT'S BOND FOR THE UNCOLLECTED DUTY OF A SHIP WHICH WAS HANDLED AT THE AGENT'S DOCK AND REPAIRED ABROAD

TAX ON NONMUNICIPAL PILOTS DOES NOT MAKE THE USE OF PORT PILOTS COMPULSORY

FREE STANDING ELECTRICAL TRANSFORMER ATTACHED TO SKID DOES NOT CONSTITUTE A PACKAGE WITHIN COGSA

2. ALIEN'S RIGHTS

ALIENS MAY BE EXCLUDED FROM GRAND AND PETIT …

Recent Developments, Craig G. Christensen

Vanderbilt Journal of Transnational Law

The debacle of the Nationalist regime in China and the subsequent United States trade embargo on the People's Republic of China (China) from 1949 to 1970, resulted in the deletion or obsolescence of United States federal income tax incentives previously applicable to Sino-American trade. The benefits of these tax provisions were transferred, with the Nationalist government, to the Taiwan-based Republic of China (Taiwan). Moreover, foreign trade tax measures enacted during the economic stalemate were largely inapplicable to China, but enhanced existing trade with Taiwan and Hong Kong. Initial United States responses to the current detente with China portend increasingly significant …

Books Received, Journal Staff

Vanderbilt Journal of Transnational Law

AMERICAN LABOR AND THE MULTINATIONAL CORPORATION

Edited by Duane Kujawa

New York: Praeger Publishers, 1973. Pp. xxvii,285. $18.50.

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ASPECTS DU DROIT INTERNATIONAL ECONOMIQUE: ELABORATION CONTROLE--SANCTION.

Societe Francaise pour le Droit International. Paris: A. Pedone, 1972. Pp. 221. n.p. (paper).

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THE BASES OF INTERNATIONAL ORDER

Edited by Alan James

London: Oxford University Press, 1973. Pp. viii, 218 £ 3.50 net.

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CURRENT LEGAL ASPECTS OF DOING BUSINESS IN THE FAR EAST

Edited by Richard C. Allison

Chicago: American Bar Association,1972. Pp. vii, 208. $10.00.

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DOMESTIC TAXATION AND FOREIGN TRADE: THE UNITED STATES-EUROPEAN BORDER TAX DISPUTE

By Michael von …

Case Digest, Journal Staff

Vanderbilt Journal of Transnational Law

Case Digest

1. ADMINISTRATIVE

NON-VESSEL-OPERATING COMMON CARRIERS HAVE BURDEN OF PROOF TO JUSTIFY THE REASONABLENESS OF PROPOSED RATE INCREASE IN A FEDERAL MARITIME COMMISSION PROCEEDING

2. ADMIRALTY

COMPARATIVE NEGLIGENCE STANDARD APPLICABLE TO THE CANAL ZONE COMPANY DOES NOT SUPERSEDE THE RULE OF DIVIDED DAMAGES BETWEEN VESSELS

FAILURE TO OBEY COMMANDS OF SHIP MASTER BECAUSE OF VOLUNTARY INTOXICATION CONSTITUTES WILLFUL DISOBEDIENCE

PREJUDGMENT INTEREST FROM DATE OF JUDICIAL DEMAND IS PROPER WHEN ORIGINAL ACTION AT LAW Is CHANGED TO ADMIRALTY BY WITHDRAWAL OF JURY DEMAND

THE PERSONAL REPRESENTATIVE ALONE HAS STANDING TO BRING A WRONGFUL DEATH ACTION IN GENERAL MARITIME LAW

PERMITTING …

Direct Investment In France: Law And Taxes, Xavier T. De Marsac, Robert S. Rich

Vanderbilt Journal of Transnational Law

Direct investment in France by non-French persons is subject to governmental regulations. The primary purpose of these regulations is to enable the French Ministry of Finance, in liaison with other authorities, to examine the merits of any proposed foreign investment in France. Most foreign direct investment must be approved in advance by the Ministry in order to protect the French economy from foreign domination and to encourage increased employment and improved technology. To these ends, the regulations confer on the Ministry the right to refuse its consent to most proposed investments. In carrying out its responsibilities, the Ministry's policy in …

Editor's Foreword, Harold G. Maier

Vanderbilt Journal of Transnational Law

This issue of the Vanderbilt Journal of Transnational Law includes two presentations to the 1972 Symposium of the Vanderbilt International Law Society and Regional Meeting of the American Society of International Law. First, Henry Harfield of the New York Bar discusses the relevance of international and transnational law to international commercial transactions, with a special emphasis on the usefulness of the Uniform Customs and Practices for Commercial Documentary Credits. Secondly, Sheldon S. Cohen, a member of the District of Columbia Bar and past Commissioner of Internal Revenue, focuses on the United States tax implications of changing currency values. While four …

Tax Consequences Of Foreign Currency Fluctuations, Sheldon S. Cohen

Vanderbilt Journal of Transnational Law

This article concerns the United States federal income tax treatment of the gains and losses resulting from transactions involving currencies other than the United States dollar. United States income taxes must be computed and paid in United States dollars. Therefore, when persons subject to United States income taxes engage in transactions involving foreign currencies, they must account for their profits in terms of dollars for United States income tax purposes. This result follows even if the taxpayer does not actually convert the results of these transactions into dollars. Whether the failure to convert is voluntary, or results from legal restrictions …