The Resource Continuity and change in the present and future taxation of cross-border intangible income

Continuity and change in the present and future taxation of cross-border intangible income

Label
Continuity and change in the present and future taxation of cross-border intangible income
Title
Continuity and change in the present and future taxation of cross-border intangible income
Creator
Subject
Language
eng
Summary
This article offers a descriptive and thematic approach to understanding some of the special rules that Congress has written - and that it might write in the future - concerning the taxation of cross-border intangible income. Before providing a thematic overview of current rules and glimpsing into the future, Part II first defines intangible income and then provides data that shows why the taxation of crossborder intangible income matters. Part III describes several special Code provisions addressed to the taxation of cross-border intangible income and argues that these special rules reflect Congress' attempt over time to balance two competing policies: (1) stopping the tax-favoured shifting of intangible property and income out of the United States and (2) avoiding more burdensome U.S. taxation of U.S. MNCs' cross-border intangible income than the taxation imposed by other countries on similar income derived by foreign MNCs. These two policies are versions of the two competing norms, capital export neutrality and capital import neutrality, which have dominated the five-decades-old narrative about U.S. international tax policy generally. Part IV surveys four recent proposals related to the taxation of intangible income and argues that these proposals are based on the same two policies that explain the special current law rules described in Part III. Part IV also identifies a third policy objective of several of the recent proposals - encouraging U.S. research - and illustrates that this policy, like the two themes identified in Part III, is not new. In Part V the author argues that although these recent proposals do not represent a fundamental rethinking of how the United States should tax U.S. MNCs' cross-border intangible income, the proposals include at least two elements - destination-based rules and formula-based rules - that represent significant departures from current international tax rules. These destination- and formula-based rules join a growing global challenge to the role of two central features of the current international tax structure, source-based taxation and arm's-length transfer pricing rules. Policymakers and MNCs around the world sense - and to varying degrees are contributing to - great instability in the international tax regime
Citation source
In: Tax law review. - New York. - Vol. 66 (2013),
http://library.link/vocab/creatorName
Lenter, D.L
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • intangibles
  • cross-border transaction
  • substance over form
  • research and development
  • transfer pricing
Label
Continuity and change in the present and future taxation of cross-border intangible income
Instantiates
Publication
Label
Continuity and change in the present and future taxation of cross-border intangible income
Publication

Library Locations

    • IBFD Library AmsterdamBorrow it
      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.37366609999999 4.9336932
Processing Feedback ...