International Tax Primer

by McIntyre, Michael J.

• ISBN13: 9789041188984
• ISBN10: 9041188983
• Edition: 2nd
• Format: Paperback
• Copyright: 2002-12-01
• Publisher: Aspen Pub

Summary

The international aspects of income taxation have become increasingly important as countries worldwide have become more economically integrated. International Tax Primer provides an introduction To The policies that countries seek to advance with their international tax rules, with numerous examples drawn from the practices of both developed and developing countries. It grew out of the authors' work with the OECD in conducting seminars on international tax for tax officials in countries emerging from the collapse of the Soviet Union. The book strikes a balance between the specific And The general by illustrating the fundamental principles and structure of international tax with frequent reference to actual practice in a variety of countries. Coverage includes: the role of the tax adviser; tax planning techniques; international double taxation; transfer pricing; anti-avoidance rules; tax treaties, including discussion of the OECD and UN Model Treaties; emerging issues, such as e-commerce and harmful tax competition.

Table of Contents

Preface	ix
Introduction	1	(14)
Objectives of this Primer	1	(1)
What is International Tax?	2	(2)
Goals of International Tax Rules	4	(3)
The Role of the Tax Adviser in Planning International Transactions	7	(8)
Jurisdiction to Tax	15	(12)
Introduction	15	(1)
Defining Residence	16	(5)
Residence of Individuals	17	(1)
Residence of Legal Entities	18	(2)
Treaty Issues Relating to Residence	20	(1)
Source Jurisdiction	21	(6)
Employment and Personal Services Income	22	(1)
Business Income	23	(1)
Investment Income	24	(3)
Double Taxation Relief	27	(28)
Introduction	27	(2)
International Double Taxation Defined	29	(1)
Relief Mechanisms	30	(18)
Deduction Method	32	(1)
Exemption Method	33	(3)
Credit Method	36	(1)
General Rules	37	(2)
Types of Limitations	39	(3)
Indirect Credit	42	(2)
Comparison of the Exemption and Credit Methods	44	(3)
Treaty Aspects	47	(1)
Allocation of Expenses	48	(2)
Tax Sparing	50	(5)
Transfer Pricing	55	(26)
Introduction	55	(5)
Arm's Length Method	60	(13)
Sales of Tangible Personal Property	61	(1)
Traditional Methods	61	(3)
Additional Methods	64	(4)
Sharing of Corporate Resources	68	(1)
Loans or advances	69	(1)
Performance of services	69	(1)
Use of tangible property	69	(1)
Use or transfer of intangible property	69	(1)
Cost Contribution Arrangements	70	(2)
Treaty Aspects of Transfer Pricing Methods	72	(1)
Determining the Income of a Branch or Permanent Establishment of a Corporation	73	(4)
Formulary Apportionment and the Future of the Arm's Length Method	77	(4)
Anti-Avoidance Measures	81	(22)
Introduction	81	(2)
Thin Capitalization Rules	83	(4)
Controlled Foreign Corporation (CFC) Rules	87	(12)
General	87	(3)
Definition of a Controlled Foreign Corporation	90	(1)
Designated Jurisdiction or Global Approach	91	(3)
Definition and Computation of Attributable Income	94	(2)
Nature and Scope of Exemptions	96	(2)
Domestic Taxpayers Subject to Tax	98	(1)
Relief Provisions	98	(1)
Offshore Investment Funds	99	(4)
Tax Treaties	103	(34)
Overview	104	(12)
Legal Nature and Effect of Tax Treaties	104	(1)
Objectives of Tax Treaties	105	(1)
Model Tax Treaties	106	(5)
Revisions of Treaties and Treaty Overrides	111	(1)
Interpretation of Tax Treaties	112	(4)
Contents of a Typical Tax Treaty	116	(12)
Coverage, Scope, and Legal Effect	117	(1)
Business Income	118	(4)
Employment and Personal Services Income	122	(2)
Income and Gains from Immovable Property	124	(1)
Reduced Withholding Rates on Certain Investment Income	125	(1)
Other Types of Income	126	(1)
Fair Dealing and Cooperation	127	(1)
Special Treaty Issues	128	(9)
Nondiscrimination	128	(1)
Treaty Shopping	129	(3)
Resolution of Disputes	132	(1)
Administrative Cooperation	133	(4)
Emerging Issues	137	(22)
Harmful Tax Competition	137	(7)
Introduction	137	(2)
Identifying Harmful Tax Competition	139	(1)
Tax Havens	139	(1)
Harmful Preferential Tax Regimes	140	(2)
Countermeasures	142	(1)
Recent Developments	142	(2)
Hybrid Entities	144	(5)
What Is a Hybrid Entity?	144	(1)
Types of Hybrid Entities	145	(4)
Electronic Commerce	149	(10)
Introduction	149	(1)
Nature of the Internet	150	(2)
E-Commerce and Nexus	152	(5)
Characterization of Income from E-commerce	157	(2)
Glossary of International Tax Terms	159	(12)
Selected Bibliography	171	(6)
Index	177