Tax Law Commons^™

9th Circ. Got Cost-Sharing Right In Altera V. Commissioner, Reuven S. Avi-Yonah

Other Publications

On June 7, the U.S. Court of Appeals for the Ninth Circuit released its long-awaited opinion in Altera Corp. v. Commissioner. Like its predecessor, the new panel chosen after Judge Stephen Reinhardt's death reversed the U.S. Tax Court and held that the regulation requiring multinationals that enter into a qualified cost-sharing agreement, or QCSA, to share the cost of employee stock options is valid.

America's (D)Evolving Childcare Tax Laws, Shannon Weeks Mccormack

Articles

Proponents have touted the ability of the Tax Cuts and Jobs Act (the TCJA) — enacted in the twilight of 2017 — to help American working families. But while the TCJA expanded some benefits available to parents with dependent children, these parental tax benefits may be claimed regardless of whether or to what extent childcare costs are incurred to work outside the home. To help working parents with these costs (which are often their largest expense), Congress might have turned to two other mechanisms in the tax law — the “child and dependent care credit” and the “dependent care exclusion.” …

Attacking Innovation, Xuan-Thao Nguyen, Jeffrey A. Maine

Articles

Economists generally agree that innovation is important to economic growth and that government support for innovation is necessary. Historically, the U.S. government has supported innovation in a variety of ways: (1) a strong legal system for patents; (2) direct support through research performed by government agencies, grants, loans, and loan guarantees; and (3) indirect support through various tax incentives for private firms. In recent years, however, we have seen a weakening of the U.S. patent system, a decline in direct funding of research, and a weakening of tax policy tools used to encourage new innovation. These disruptive changes threaten the …

Navigating 21st Century Tax Jurisdiction, Hayes R. Holderness

Law Faculty Publications

Hailed as a massive victory for the states, the Supreme Court’s 2018 decision in South Dakota v. Wayfair, Inc. brought dated state tax jurisdiction standards into the twenty-first century, freeing the states to tax internet vendors. However, the decision left the larger state tax jurisdiction doctrine undertheorized and at a crossroads: should the doctrine concern itself only with notice and fairness issues akin to those found in the due process personal jurisdiction realm, or should it also concern itself with protecting interstate commerce from undue state tax burdens?

This Article argues for the latter path by developing a robust theory …

Identifying Illegal Subsidies, Ruth Mason

American University Law Review

No abstract provided.

Myth Vs. Reality: Airbnb And Its Voluntary Tax Collection Efforts, Richard Pomp

Faculty Articles and Papers

In this report, Professor Pomp debunks the claims presented in several reports commissioned by the American Hotel and Lodging Association (Hotel Association). Despite hotel profits reaching all time highs, the Hotel Association has continued to attack Airbnb.

Part I serves as an introduction to Airbnb and its solution to an administrative challenge confronted by tax jurisdictions. Airbnb operates a platform that links guests looking for short-term rental opportunities with hosts offering such services.

There are potentially millions of hosts who are unaware that they are subject to municipal taxes on short-term rentals. Municipalities lack the resources required to track down …

Bc Ranch Ii V. Commissioner: A Flexible Approach To Perpetual Conservation Easements, Victoria Wolfe

Indiana Law Journal

Depending on the approach used in enforcement, there is the potential to encourage or discourage charitable donations of conservation easements. In Part I, this Note explores the federal charitable income tax deduction for conservation easements and the legislative purpose in enacting the perpetuity requirements. Part II examines the Fifth Circuit’s decision in BC Ranch II and the flexible approach to perpetuity adopted by the court. Finally, Part III considers the implications of the BC Ranch II decision, specifically authority to monitor conservation easements, valuation gaming of easements in the context of perpetuity, and congressional intent in allowing the conservation easement …

Called To Serve: Elevating Human-Performed Caregiver And Volunteer Work In An Era Of Ai-Robotic Technologies, Hilary G. Escajeda

Journal Articles

Although the status quo of the traditional female caregiver has managed to muddle forward, it may begin to unwind as increasingly capable technologies dislodge humans from full-time employment and compel a redefinition of valuable work. Given this backdrop, this Essay seeks to open a dialogue for developing thoughtful, modem tax policies. Part I outlines the vocational endeavors of historically female community members who serve as caregivers and social volunteers. Next, Part II summarizes the economic value of volunteer and caregiver services. Part III examines whether tax policies should adopt a more expansive definition of beneficial occupations, as artificial intelligence (AI) …

Continuity As The Key To Reform Of Section 355, Charlene Luke

UF Law Faculty Publications

There can be little doubt that Internal Revenue Code (Code) section 355 is overly complex; the piecemeal adjustments spanning multiple decades could serve as exemplars of the potential pitfalls of incremental reform. Revisions to section 355 have tended to be under- or over-inclusive because they are reactive to particular deals, yet they leave largely intact older structures that dealt with different deals. The result is a jumble of provisions that fail to implement a coherent, principled approach to the tax treatment of corporate divisions. In Reform of Section 355, Bret Wells urges changing Code section 355 to focus on the …

Can Gilti + Beat = Globe?, Mindy Herzfeld

UF Law Faculty Publications

The OECD is moving forward with consideration of a minimum tax as part of its solution to taxation of the digital economy. Part of a template for such a minimum tax may be the version enacted by the United States (US) in 2017 as an expansion of its Controlled Foreign Corporation (CFC) regime, known as Global Intangible Low Taxed Income (GILTI). But the OECD version will undoubtedly be different from the US iteration. It’s likely that it would also include some aspects of a minimum tax being proposed by other OECD members such as Germany and France, namely a tax …

2018 Survey Of Rhode Island Case Law

Roger Williams University Law Review

No abstract provided.

Book Review: International Tax Policy: Between Competition And Cooperation, Yariv Brauner

UF Law Faculty Publications

The author reviews International Tax Policy: Between Competition and Cooperation. By Tsilly Dagan. Cambridge Tax Law Series, 2018.

This Is Our House! - The Tax Man Comes To College Sports, Kathryn Kisska-Schulze

Marquette Sports Law Review

None

The Religious Roots Of The Progressive Income Tax In America, Joshua Cutler

Catholic University Law Review

I examine the debate over the first peacetime income tax in the United States in 1894 to investigate the role of religion in enacting the tax and providing moral legitimacy. I find that congressional proponents repeatedly and explicitly argued that a progressive income tax was a biblical tax that best conformed to Judeo-Christian teachings on economics and fundraising. I discuss the history of American religious fundraising practices, including the trend leading up to 1894 that advocated for proportionate giving of income as the best method of giving, as well as the related tithing movement. I document that congressional income tax …

Assessing The Potential Impacts Of The Tax Reform For Acceleration And Inclusion And The Build Build Build Program, Caesar Cororaton, Marites Tiongco, Justin S. Eloriaga

Angelo King Institute for Economic and Business Studies (AKI)

The Tax Reform for Acceleration and Inclusion (TRAIN) Act has prompted key changes in the personal income tax regime through excise taxes on most goods such as petroleum, sugar-sweetened beverages, and automobiles. The TRAIN was implemented to generate funds for the Build Build Build (BBB) program and at the same time to address income inequality and poverty. This paper aims to assess the potential growth, poverty, and distributional effects of the TRAIN Package 1 and the BBB Program using a computable general equilibrium model with poverty simulation. Results suggest that TRAIN I has prompted additional revenue in social programs and …

The Philippine Sin Tax Reform Law: Is It Effective In Reducing Cigarette Consumption?, Jesson A. Pagaduan, Myrna S. Austria

Angelo King Institute for Economic and Business Studies (AKI)

The Philippine government should continue the increase in excise tax on cigarettes and tobacco products to sustain the impact of the Sin Tax Reform Law (2012) in lowering tobacco consumption in the country. This Policy Brief explains why the policy measure is significant and offers recommendations where the government can further intensify the impact of the tax policy reform.

Current Tax Reading, Robin Boadway, Kim Brooks, Jinyan Li, Alan Macnaughton

Articles, Book Chapters, & Popular Press

The Canadian Tax Journal publishes research in, and informed comment on, taxation and public finance, with particular relevance to Canada. To this end, the journal invites interested parties to submit manuscripts for possible publication as peer-reviewed articles, and it especially welcomes work that contributes to the analysis, design, and implementation of tax policies.

Current Tax Reading, Robin Boadway, Kim Brooks, Jinyan Li, Alan Macnaughton

Articles, Book Chapters, & Popular Press

The Canadian Tax Journal publishes research in, and informed comment on, taxation and public finance, with particular relevance to Canada. To this end, the journal invites interested parties to submit manuscripts for possible publication as peer-reviewed articles, and it especially welcomes work that contributes to the analysis, design, and implementation of tax policies.

Of Piketty And Perpetuities: Dynastic Wealth In The Twenty-First Century (And Beyond), Eric Kades

Faculty Publications

For the first time since independence, in a nation founded in large part on the rejection of a fixed nobility determined by birth and perpetuated by inheritance, America is paving the way for the creation of dynastic family wealth. Abolition of the Rule Against Perpetuities in over half the states along with sharp reductions in, and likely elimination of, the federal estate tax mean that there soon will be no obstacles to creating large pools of dynastic wealth insuring lavish incomes to heirs for generations without end. The timing of these legal changes could hardly be worse. Marshaling innovative economic …

Cryptocurrency Hard Forks And Revenue Ruling 2019-24, Eric D. Chason

Faculty Publications

No abstract provided.

The International Tax Environment And Simplification Of South African Tax Legislation: A Double-Edged Sword, Jinyan Li, Teresa Pidduck

Articles & Book Chapters

In this paper, we examine the relationship between the international tax environment and legislative complexity in South Africa’s international tax system. We suggest that the international tax environment is a double-edged sword. It causes complexity in South Africa’s tax legislation as it largely responds to the needs of OECD countries and produces tax rules to deal with ‘sophisticated’ tax problems and taxpayers (such as multinational enterprises). When such rules are transplanted into South Africa, they are typically more complex than local rules dealing with local taxpayers. On the other hand, the international tax environment offers ideas for ‘scientific’ drafting of …

Value Creation: A Constant Principle In A Changing World Of International Taxation, Jinyan Li, Nathan Jin Bao, Huaning Li

Articles & Book Chapters

The authors consider the new nomenclature of value creation in terms of its meaning, theoretical basis, and importance in the context of the international taxation of business profits. The authors’ central claim is that the principle of value creation is a profound elaboration of the doctrine of economic allegiance, which is the theoretical basis for the current international tax system; and that international tax norms, such as the arm’s-length principle, are meant to give effect to the doctrine of economic allegiance (and now to the principle of value creation). As demonstrated by the Organisation for Economic Co-operation and Development/Group of …

International Tax Simplification In South Africa Through Managing Substantive Complexity And Improving Drafting Efficiency, Jinyan Li, Teresa Pidduck

Articles & Book Chapters

This chapter discusses the complexity of the South African international tax legislation in terms of both its substantive complexity and drafting complexity. Substantive complexity is established by examining the current legislation governing tax jurisdiction, the taxation of resident taxpayers and non-resident taxpayers as well as international tax incentive measures and anti-avoidance rules. Drafting complexity is established by comparing the South African Income Tax Act to the Canadian Income Tax Act in respect of the drafting of individual provisions and arrangement of provisions. The chapter recommends ways to simplify the South African international tax legislation by: (a) accepting substantive complexity that …

From 30,000 Feet Into The Weeds, Richard Pomp

Faculty Articles and Papers

In this article, Professor Pomp makes various predictions regarding the future of the tax law.

Artificial intelligence will continue to change the legal landscape. The IRS uses AI to predict the likelihood of nonpayment, abusive tax returns, underreporting, and nonfiling. It also uses AI to mine social media accounts for evidence of theft and tax fraud. AI also allows firms to analyze large data sets and predict how courts will resolve legal issues in tax cases.

Pomp predicts litigation surrounding the use of market-based sourcing arising from ambiguous terms like “benefit,” “delivery,” and “use.” He also expects litigation resulting from …

The Disclosure Of Individual Tax Returns: A Historical Overview, Richard Pomp

Faculty Articles and Papers

In this article, Professor Pomp provides a historical overview of the debate and law surrounding public access to individual tax returns.

To fund the Civil War, the Revenue Act of 1862 imposed an income tax on individuals. At a time which predated reliable mail, the public was notified of their tax liabilities through newspaper advertisements.

In 1870, when the income tax had become unpopular, Congress prohibited the publication of tax returns. Public disclosure was revisited in 1913; by 1918 the public was permitted to view lists of individual taxpayers, though this information was not allowed to be published.

Fueled by …

Mormon Profit: Brigham Young, Tithing, And The Bureau Of Internal Revenue, Samuel D. Brunson

Faculty Publications & Other Works

Since the enactment of the modern federal income tax, churches have been exempt from taxation. But that exemption is neither necessary nor inevitable. In fact, at the end of the 1860s, the Bureau of Internal Revenue decided that tithing received by the Mormon church was taxable under the Civil War income tax. At the time, Mormons distrusted the federal government and the federal government, in turn, distrusted the Mormons. The question of taxation was a small part of a larger legal and existential battle between the Mormons and the government. This Article situates the question of the taxability of tithing …

Afterlife Of The Death Tax, Samuel D. Brunson

Faculty Publications & Other Works

More than a century ago, Congress enacted the modern estate tax to help pay for World War I. Unlike previous iterations of the estate tax, though, this one outlived the war and accumulated additional goals beyond merely raising revenue. The estate tax helped ensure the progressivity of the tax system as a whole, and it limited the hereditary ability to accumulate wealth.

This modern estate tax almost instantly met with opposition, though. The opposition has never been sufficient to entirely eliminate the estate tax, but it has severely weakened its ability to raise revenue and to prevent the accumulation of …

Paying For Gun Violence, Samuel D. Brunson

Faculty Publications & Other Works

Gun violence is an outsized problem in the United States. Between a culture that allows for relatively unconstrained firearm ownership and a constitutional provision that ensures that ownership will continue to be relatively unchecked, it has proven virtually impossible for politicians to address the problem of gun violence. And yet, gun violence costs the United States tens of billions of dollars or more annually. These tens of billions of dollars are negative externalities — costs that gun owners do not bear themselves, and thus that are imposed on the victims of violence and on taxpayers generally.

What can we do …

The C.J.E.U. Case Law Relevant To The General Anti-Avoidance Rule (G.A.A.R.) Under The Anti-Tax Avoidance Directive (A.T.A.D.), Blazej Kuzniacki

Research Collection School Of Accountancy

This study concentrates on the Court of Justice of the European Union (C.J.E.U.) case law in order to reconstruct from it an interpretative guidance for the proper understanding and thus the application of the general anti-abuse rule included in Article 6 A.T.A.D. (the A.T.A.D.’s G.A.A.R.). Although Article 6 aims to harmonise general anti-abuse rules in the domain of tax law among all M.S.s, its wide scope and its phraseology raises a plethora of issues, in particular in respect of its proper– E.U. compatible– understating and thus application. The analysis of the relevant C.J.E.U. case law, as undertaken in this paper, …

The Futility Of Walls: How Traveling Corporations Threaten State Sovereignty, Darren Rosenblum

Faculty Publications

Inversions—mergers in which one firm merges with another abroad to avoid taxes in its home country—have spread as globalization has reduced many of the transactional costs associated with relocating. As firms acquire the power to choose the laws that govern them, they challenge the sovereignty of nation-states, who find their ability to tax and regulate firms depleted. States and firms compete in a game of cat and mouse to adapt to this new global reality. The subversion of state power by these firms reveals the futility of walls, both literal and regulatory. This Essay describes the phenomenon of these “traveling …