Tax Law

Recent Posts

'Stateless Income' Is Key to International Reform
Posted on 28 Jun 2011 by Martin A. Sullivan

Next time you hear multinationals talk about international tax reform -- which they equate to an exemption system that does not deny deductions for expenses allocable to foreign income -- notice that there is no mention of profit shifting. They routinely... Read More

  • Blog Post: Will Indebted Ireland Be Forced to Raise its Corporate Tax Rate?

    With newly released estimates of the bailout of Anglo Irish Bank the Irish government is staring down the barrel of a budget deficit equal to a whopping 32 percent of GDP. Ireland does not want a Greek-style foreign bailout and it does not want to default or restructure its own sovereign debt or the...
  • Blog Post: Japan Cuts Its Corporate Tax Leaving US With the World's Top Rate

    On December 24 the Japanese cabinet headed by Prime Minister Naoto Kan agreed to a budget including a cut in the corporate tax rate, effective April 1, 2011, from 39.5 percent to 35 percent. Barring unforeseen circumstances the Japanese parliament will approve this plan early in 2011. After this change...
  • Blog Post: 'Stateless Income' Is Key to International Reform

    Next time you hear multinationals talk about international tax reform -- which they equate to an exemption system that does not deny deductions for expenses allocable to foreign income -- notice that there is no mention of profit shifting. They routinely present a picture of a simple world in which there...
  • Blog Post: Taxes & Sovereignty: The Euro Experiment

    Henry Kissinger predicted the demise of the euro many years ago. He and other euro-skeptics saw a fundamental flaw in the structure of the single currency. The flaw -- which remains in place to this day -- is that countries adopting the euro must forfeit monetary policy to the European Central Bank but...
  • Blog Post: How Tax Collectors Learned to Love Bank Secrecy

    Germany and Switzerland recently signed a landmark tax agreement that resolves years of squabbling over secret bank accounts. Fascinatingly, the agreement ends one form of blatant offshore tax evasion while preserving Swiss bank secrecy. How can that be? The answer is simple: tax collectors have been...
  • 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: 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: The Income Tax Is Inquisitorial - Get Over It

    Apparently, the Italians have found a way to make their unpopular income tax even more unpopular . In the face of rampant cheating, they've adopted a new enforcement technique. Now, instead of just pawing through paychecks, bank statements and the like, officials will also scrutinize spending habits...