Tax Law

Recent Posts

OECD Doesn't Want Politics to Interfere with Tax Policy
Posted on 17 Apr 2013 by Martin A. Sullivan

I was wrong. I thought that The Organisation for Economic Co-operation and Development (OECD) had shrugged off its cautious, conservative tendencies with the issuance of its February 12 report entitled "Base Erosion and Profit Shifting ." After... Read More

U.K. Conservative Policies in Trouble
Posted on 25 Jan 2013 by Martin A. Sullivan

This morning UK GDP figures for the 4th quarter of 2012 were released and the news is bad: the economy shrank by 0.3 percent. After the mini-burst of growth due to the Olympics, the UK economy is back in the doldrums. Some are calling it a triple dip... Read More

OECD Praises Itself Through G20 For Progress on Tax Evasion - But Is It Praiseworthy?
Posted on 20 Jun 2012 by Allison Christians

In a recent post on its website, the OECD says that the G20 has reported that "steady progress is being made towards tackling tax evasion more effectively." In an article I wrote in 2010, I called the G20 a syndicator of OECD tax views , since... Read More

U.K. Road to Competitiveness Is Paved With Tax Increases
Posted on 26 Apr 2012 by Martin A. Sullivan

It has been the stated policy of the United Kingdom's Conservative-led coalition government "to create the most competitive corporate tax regime in the G20." Chancellor of the Exchequer George Osborne reiterated this policy -- expanded to... Read More

Taxing the Corporation: Home Depot and the State's Claim of Right
Posted on 30 Dec 2013 by Allison Christians

The Arizona Court of Appeals recently issued a decision in the Home Depot case , which involves determining when the state has jurisdiction to tax a corporation. The case is about a domestic multi-state business but it has interesting implications for... Read More

Foreign Tax Credit, Partnerships and Disregarded Entities: The Latest Rules
Posted on 30 Aug 2012 by Rufus Rhoades

[Editor's Note: This narrative is derived from Rhoades & Langer, U.S. International Taxation and Tax Treaties, § 12.02[3][a][ii][B] (Matthew Bender). Available also in print at the LexisNexis® Store . ] The foreign tax credit is the... Read More

Can You Distinguish a Tax From a Ransom Payment?
Posted on 8 Jan 2013 by Robert Goulder

... In case you missed it, Starbucks managed to legally pay no income tax in the U.K. over the course of several years, despite operating more than 700 thriving coffee shops across Britain. All its taxable income (yes, every penny) had been shifted to... Read More

Practical Tax Considerations Relevant to U.S. Totalization Agreements
Posted on 6 Jul 2012 by Rufus v. Rhoades & Alexey Manasuev

Totalization agreements are one of the best kept secrets in the international tax arena. Very few practitioners know they exist, and fewer still know what those agreements do... ... Totalization Agreements: What They Are A totalization agreement... Read More

French Budget Minister Caught in Tax Probe
Posted on 29 Jan 2013 by Robert Goulder

... Earlier this month the French Budget Minister, Jerome Cahuzac, was placed under investigation for allegedly using a secret offshore bank account to evade taxes. If that strikes you as odd, you're not alone. As budget minister, Cahuzac's job... Read More

Ireland Is Not A Tax Haven, Dammit
Posted on 30 May 2013 by Christopher Bergin

... The Irish are... nervous after the U.S. Senate's permanent investigations subcommittee hearing last week at which apparently the terms "Ireland" and "tax haven" were used in proximity about a billion times. The Irish are so... Read More

Berlusconi and the Lure of Tax Refunds
Posted on 22 Feb 2013 by Robert Goulder

... [Silvio Berlusconi] seeks another stint as PM in the general elections set for this coming Sunday [February 24th]. Polls show him trailing center-left opponent Pier Luigi Bersani by 5 percentage points. How does he plan to win over the electorate... Read More

Will Developed Countries Learn to Tax?
Posted on 6 Mar 2012 by Allison Christians

In 1963, Nicholas Kaldor published a paper in Foreign Affairs about the ongoing fiscal problems of poor countries, entitled " Will Underdeveloped Countries Learn to Tax? " It turns out Kaldor should have aimed this advice at his own country... Read More

Managing the Competent Authority Process for U.S.-Based Multinational Enterprises
Posted on 13 Feb 2013 by LexisNexis Tax Law Community Staff

by Barry Shott, Richard Barrett and Elizabeth Sweigart * Under pressure to close revenue gaps and to address perceived aggressive tax positions related to the pricing of cross-border transactions, both the U.S. and foreign tax authorities are imposing... Read More

Taxing Financial Pollution
Posted on 28 Jan 2013 by Martin A. Sullivan

European finance ministers ("finance minister" is equivalent to our Treasury Secretary) voted on January 22 to move forward with a plan to tax trades of stock, bonds, and other financial instruments. As a result a financial transactions tax... Read More

Art Tax Law: A Double-Hedged Sword
Posted on 17 Jan 2013 by Annabelle Gauberti

How Art Tax Law Is a Decisive Tool To Promote, Or Demote, Global Art Market Hubs The art market is booming. It only took 18 months for it to recover from a severe contraction, from October 2008 to the summer of 2009. The powerful surge by China... Read More

  • Blog Post: U.S., 5 European Nations Reach Deal to Combat International Tax Evasion

    In a joint statement, the governments of the United States, France, Germany, Italy, Spain and Britain stated they wished to increase cooperation in fighting international tax evasion. This would work in both directions-the European nations providing information about US resident accounts on their soil...
  • Blog Post: Will Developed Countries Learn to Tax?

    In 1963, Nicholas Kaldor published a paper in Foreign Affairs about the ongoing fiscal problems of poor countries, entitled " Will Underdeveloped Countries Learn to Tax? " It turns out Kaldor should have aimed this advice at his own country, as the rich world, confident in its fiscal advice...
  • Blog Post: Countries Don't Help Each Other to Tax, And They Should

    Despite the compelling idea that a central mark of statehood is the power of the sovereign to impose taxation, it is surprising how little states help each other to tax. Tax information exchange is virtually the only way to impose income taxation coherently in a world of footloose capital. Yet while...
  • Blog Post: U.K. Road to Competitiveness Is Paved With Tax Increases

    It has been the stated policy of the United Kingdom's Conservative-led coalition government "to create the most competitive corporate tax regime in the G20." Chancellor of the Exchequer George Osborne reiterated this policy -- expanded to include all noncorporate business -- in his 2012...
  • Blog Post: OECD Praises Itself Through G20 For Progress on Tax Evasion - But Is It Praiseworthy?

    In a recent post on its website, the OECD says that the G20 has reported that "steady progress is being made towards tackling tax evasion more effectively." In an article I wrote in 2010, I called the G20 a syndicator of OECD tax views , since the G20 lacks an independent infrastructure in...
  • Blog Post: Further Guidance on Foreign Financial Asset Reporting

    [ Editor's Note: This narrative is derived from Rhoades & Langer, U.S. International Taxation and Tax Treaties, Chapter 9 (Matthew Bender) .] Virtually all individual taxpayers (and certain entities called "specified domestic entities") are required to report their financial assets...
  • Blog Post: Practical Tax Considerations Relevant to U.S. Totalization Agreements

    Totalization agreements are one of the best kept secrets in the international tax arena. Very few practitioners know they exist, and fewer still know what those agreements do... ... Totalization Agreements: What They Are A totalization agreement is a bilateral treaty between two countries that...
  • Blog Post: Foreign Tax Credit, Partnerships and Disregarded Entities: The Latest Rules

    [Editor's Note: This narrative is derived from Rhoades & Langer, U.S. International Taxation and Tax Treaties, § 12.02[3][a][ii][B] (Matthew Bender). Available also in print at the LexisNexis® Store . ] The foreign tax credit is the international taxpayer's chief defense against...
  • Blog Post: Inversion Regulations: The Illusory "Safe Harbor"

    [On June 7, 2012], Treasury issued temporary and proposed ( T.D. 9592 ) and final ( T.D. 9591 ) regulations under IRC Section 7874 to "provide more certainty in applying IRC § 7874 " and to "improve the administrability" of the substantial business activities exception (see Preamble...
  • Blog Post: Can You Distinguish a Tax From a Ransom Payment?

    ... In case you missed it, Starbucks managed to legally pay no income tax in the U.K. over the course of several years, despite operating more than 700 thriving coffee shops across Britain. All its taxable income (yes, every penny) had been shifted to related entities in other countries. That caused...
  • Blog Post: Art Tax Law: A Double-Hedged Sword

    How Art Tax Law Is a Decisive Tool To Promote, Or Demote, Global Art Market Hubs The art market is booming. It only took 18 months for it to recover from a severe contraction, from October 2008 to the summer of 2009. The powerful surge by China, combined with a rise in fine art sales, particularly...
  • Blog Post: U.K. Conservative Policies in Trouble

    This morning UK GDP figures for the 4th quarter of 2012 were released and the news is bad: the economy shrank by 0.3 percent. After the mini-burst of growth due to the Olympics, the UK economy is back in the doldrums. Some are calling it a triple dip recession . The chart below shows why the UK voting...
  • Blog Post: Taxing Financial Pollution

    European finance ministers ("finance minister" is equivalent to our Treasury Secretary) voted on January 22 to move forward with a plan to tax trades of stock, bonds, and other financial instruments. As a result a financial transactions tax will likely become law in eleven countries--including...
  • Blog Post: French Budget Minister Caught in Tax Probe

    ... Earlier this month the French Budget Minister, Jerome Cahuzac, was placed under investigation for allegedly using a secret offshore bank account to evade taxes. If that strikes you as odd, you're not alone. As budget minister, Cahuzac's job is to fund the Republic and reduce the nation's...
  • Blog Post: Managing the Competent Authority Process for U.S.-Based Multinational Enterprises

    by Barry Shott, Richard Barrett and Elizabeth Sweigart * Under pressure to close revenue gaps and to address perceived aggressive tax positions related to the pricing of cross-border transactions, both the U.S. and foreign tax authorities are imposing very large tax adjustments upon multinational enterprises...
  • Blog Post: Berlusconi and the Lure of Tax Refunds

    ... [Silvio Berlusconi] seeks another stint as PM in the general elections set for this coming Sunday [February 24th]. Polls show him trailing center-left opponent Pier Luigi Bersani by 5 percentage points. How does he plan to win over the electorate in the final days before the ballots are cast? Two...
  • Blog Post: Taxation & Morality: Odd Bedfellows

    There is a public opinion poll for just about everything these days. I recently stumbled across a U.K. poll on corporate taxes and morality. Here we have two subjects that don't necessarily seem connected ... or are they? In the survey 66% of respondents said tax avoidance was immoral. The poll was...
  • Blog Post: How Should the U.S. Stop Profit Shifting

    ... In the current debate about international tax reform... [t]here are several proposals now being floated (including one in the President's budget ( Treasury "General Explanation" of FY 2013 Budget, p. 88 ) and Options A and C of Ways and Means Committee Chair Dave Camp's Discussion...
  • Blog Post: Canada Revenue Seeks Source Data on Tax Evasion from ICIJ

    Tax authorities are embarrassed by the ICIJ leak and they want the source data before anything more embarrassing hits the front page news and/or to show they really are serious about cracking down on offshore tax evasion. As a result I am not surprised to see the Canada Revenue Agency attempt to prise...
  • Blog Post: OECD Doesn't Want Politics to Interfere with Tax Policy

    I was wrong. I thought that The Organisation for Economic Co-operation and Development (OECD) had shrugged off its cautious, conservative tendencies with the issuance of its February 12 report entitled "Base Erosion and Profit Shifting ." After my first read of the 91-page document I believed...
  • Blog Post: Horse Racing and International Tax

    In international tax, ... A multinational can save hundreds of millions of dollars in tax by "selling" foreign rights to its intellectual property (IP) to a wholly-owned subsidiary in a tax haven. The key to success for a multinational is getting the IRS to allow it to sell at a low price....
  • Blog Post: Ireland Is Not A Tax Haven, Dammit

    ... The Irish are... nervous after the U.S. Senate's permanent investigations subcommittee hearing last week at which apparently the terms "Ireland" and "tax haven" were used in proximity about a billion times. The Irish are so worked up that The Irish Times reported Monday [May...
  • Blog Post: Taxing the Corporation: Home Depot and the State's Claim of Right

    The Arizona Court of Appeals recently issued a decision in the Home Depot case , which involves determining when the state has jurisdiction to tax a corporation. The case is about a domestic multi-state business but it has interesting implications for the taxation of multinationals. In brief, Home Depot...