This book explains how the tax rules of the various countries in the world interact with one another to form an international tax regime: a set of principles embodied in both domestic legislation and treaties that significantly limits the ability of countries to choose any tax rules they please. The growth of this international tax regime is an important part of the phenomenon of globalization, and the book delves into how tax revenues are divided among different countries. It also explains how U.S. tax rules in particular apply to cross-border transactions and how they embody the norms of the international tax regime.
Author(s): Reuven S. Avi-Yonah
Series: Cambridge Tax Law Series
Edition: 1
Publisher: Cambridge University Press
Year: 2007
Language: English
Pages: 224
Tags: Международные отношения;Международные отношения;
Cover......Page 1
Half-title......Page 3
Series-title......Page 4
Title......Page 6
Copyright......Page 7
Dedication......Page 8
Contents......Page 10
1 Introduction: Is there an international tax regime? Is it part of international law?......Page 12
I . IS THERE AN INTERNATIONAL TAX REGIME?......Page 13
II . IS THE INTERNATIONAL TAX REGIME PART OF INTERNATIONAL LAW?......Page 15
A. Jurisdiction to tax......Page 16
C. The arm’s-length standard......Page 17
E. Conclusion......Page 18
A. Defining the tax base: The single tax principle......Page 19
B. Dividing the tax base: The benefits principle......Page 22
C. How U.S. tax rules fit the international tax regime......Page 24
a. Active business and effectively connected income......Page 25
b. Passive income......Page 26
a. Deferral......Page 30
b. Foreign tax credit......Page 31
II . INDIVIDUALS: REDEFINITION OF NATIONALITY JURISDICTION AS RESIDENCE......Page 33
III . CORPORATIONS: EXPANSION OF NATIONALITY JURISDICTION TO CFCS......Page 35
IV. THE PROBLEM OF TERRITORIAL JURISDICTION (SOURCE)......Page 38
VI. U.S. JURISDICTION TO TAX RULES......Page 39
I . WHY ARE SOURCE RULES NEEDED?......Page 49
II . THE SOURCE RULES FOR INCOME......Page 53
III . EXAMPLES: SOURCE AND CHARACTER OF INCOME......Page 58
IV. THE ALLOCATION OF DEDUCTIONS......Page 66
V. CONCLUSION: THE SOURCE RULES AND CUSTOMARY INTERNATIONAL LAW......Page 74
I . THE GENERAL RULE......Page 75
A. Capital gains......Page 79
B. Interest......Page 80
C. Royalties......Page 83
D. Dividends......Page 85
III . CONCLUSION......Page 89
I . IN GENERAL......Page 90
II . TRADING IN STOCK OR SECURITIES......Page 92
A. The physical presence test......Page 93
B. Case examples......Page 95
C. Agency......Page 97
IV. EFFECTIVELY CONNECTED......Page 98
V. SUMMARY: TAXATION OF NONRESIDENTS AND THE INTERNATIONAL TAX REGIME......Page 100
A. Real property......Page 101
B. The branch profit tax......Page 103
C. The earnings stripping rule......Page 107
6 Transfer pricing......Page 113
8 Taxation of residents: Business income......Page 161
7 Taxation of residents: Investment income......Page 135
9 The United States and the tax treaty network......Page 180
10 Tax competition, tax arbitrage, and the future of the international tax regime......Page 193
I . TAX COMPETITION FOR PASSIVE INVESTMENT......Page 194
II . TAX COMPETITION FOR ACTIVE INVESTMENT......Page 195
III . TAX ARBITRAGE......Page 197
IV. CONCLUSION......Page 198
Bibliography......Page 200
Index......Page 216
