Federal Taxation: Foreign Corporation Taxed as a Nonresident: Federal Income Taxation. Foreign Corporations. "Engaged in Trade or Business within the United States"

1959 ◽  
Vol 12 (1) ◽  
pp. 248 ◽  
Keyword(s):  
United States ◽  
The United States ◽  
Income Taxation ◽  
Federal Taxation ◽  
Foreign Corporations ◽  
Foreign Corporation

A New Look at the Jurisdiction in ALCOA

1967 ◽  
Vol 61 (2) ◽  
pp. 558-570 ◽  
Author(s):  
John M. Raymond
Keyword(s):  
United States ◽  
Adverse Effect ◽  
The United States ◽  
Sherman Act ◽  
Aluminum Company ◽  
Antitrust Laws ◽  
Foreign Corporations ◽  
American Party ◽  
First Time ◽  
Foreign Corporation

One of the best-known antitrust decisions in the last quarter of a century is United States v. Aluminum Company of America et al., now usually referred to as the ALCOA case. Although the Sherman Act had for some time been given an extraterritorial application when American corporations were involved, the novelty of ALCOA was that the decision, written by that eminent jurist, Judge Learned Hand, for the first time interpreted our antitrust laws as rendering illegal contracts of a foreign corporation which were made abroad with other foreign corporations and which related to business carried on and to acts to be performed abroad. No American party was involved, and no act took place in the United States, in the part of the case that is here to be considered. Jurisdiction was claimed merely on the basis of an adverse “effect” on our foreign and domestic commerce.

scholarly journals Income Tax Complexity Faced by Multinational Corporations: A Comparative Study of Canada, the United States, and Other Selected OECD Countries

2021 ◽  
Vol 69 (3) ◽  
pp. 745-790
Author(s):  
Susann Sturm
Keyword(s):  
United States ◽  
Multinational Corporations ◽  
Income Tax ◽  
Transfer Pricing ◽  
The United States ◽  
Oecd Countries ◽  
The Us ◽  
Tax Complexity ◽  
Medium Level ◽  
Foreign Corporations

This study examines the complexity of Canada's corporate income tax system from the perspective of multinational corporations and compares it with the complexity of the US system, also taking into account measures of complexity for 19 other member countries of the Organisation for Economic Co-operation and Development (OECD). The author finds that with regard to the Canadian tax code, the most complex laws are those on corporate reorganization, transfer pricing, and controlled foreign corporations, and with regard to the Canadian tax framework, the most complex areas are tax audits, tax-law enactment, and tax guidance. In comparison with other OECD countries, Canada is remarkably similar to the United States. Both countries have a medium level of overall complexity, and both have a more complex tax code but a less complex tax framework than other countries. However, a closer examination of the Canadian and US tax codes and tax frameworks reveals some significant differences in complexity levels, particularly in respect of certain tax laws.

Puerto Rico: The Evolution of America's Corporate Tax Haven

2014 ◽  
Vol 12 (1) ◽  
pp. 17-40 ◽  
Author(s):  
Thomas D. Schultz ◽  
Kyle Scott
Keyword(s):  
Puerto Rico ◽  
Intellectual Property Rights ◽  
The United States ◽  
Corporate Tax ◽  
Sales Revenue ◽  
Microsoft Corporation ◽  
Tax Haven ◽  
Federal Taxation ◽  
Tax Benefits ◽  
Foreign Corporations

ABSTRACT We examine the taxation of corporate income earned in the Commonwealth of Puerto Rico and how the repeal of the possession tax credit available under Internal Revenue Code (IRC) §936 resulted in many U.S. companies converting former possessions corporations into controlled foreign corporations. Although Puerto Rico is a U.S. territory, the conversions highlight that corporations organized under the laws of the Commonwealth generally are foreign corporations for U.S. tax purposes. A U.S. Senate Subcommittee reports Microsoft Corporation shifted offshore the recognition of nearly one-half of its U.S. net retail sales revenue for the period 2009–2011 by transferring intellectual property rights to a controlled subsidiary in Puerto Rico. We find that the corresponding U.S. tax benefits are significant compared to the credits once claimed under IRC §936, and over 20 percent of Standard & Poor's (S&P) 500 firms were in a similar position to avoid federal taxation by shifting income between political subdivisions of the United States.

Tax Expenditures and the Tax Reform Act of 1969 in the United States

2022 ◽  
pp. 1-26
Author(s):  
Seiichiro Mozumi
Keyword(s):  
United States ◽  
Income Tax ◽  
Public Perception ◽  
Tax Reform ◽  
The United States ◽  
Tax Revenue ◽  
Tax System ◽  
Federal Income Tax ◽  
Federal Taxation ◽  
The Government

Abstract In the United States, tax favoritism—an approach that has weakened the extractive capacity of the federal government by providing tax loopholes and preferences for taxpayers—has remained since the 1930s. It has consumed the amount of tax revenue the government can spend and therefore weakened the possibility of the redistribution of fiscal resources. It has also made the federal tax system complicated and inequitable, resulting in undermining taxpayer consent. Therefore, since the 1930s, a tax reform to create a simple, fair, and equitable federal income tax system with the capacity to raise revenue has been long overdue. Many scholars have evaluated the Tax Reform Act of 1969 (TRA69), which Richard M. Nixon signed into law on December 30, 1969, as one of the most successful steps toward accomplishing this goal. This article demonstrates that TRA69 left tax favoritism in the United States. Furthermore, it points out that TRA69 turned taxpayers against the idea of federal taxation, a shift in public perception that greatly impacted tax reform in the years to follow.

Scandinavian Local Income Taxation: Lessons for the United States?

1977 ◽  
Vol 5 (4) ◽  
pp. 471-488 ◽  
Author(s):  
Steven D. Gold
Keyword(s):  
United States ◽  
The United States ◽  
National Government ◽  
Institutional Arrangements ◽  
Income Taxes ◽  
Income Taxation ◽  
Local Autonomy ◽  
Tax Base ◽  
Fiscal Disparities

This paper describes and analyzes the experiences of Norway. Sweden and Denmark with local income taxation in order to test the validity of comments made by numerous American economists about such taxes. Although local income taxes are their major source of locally raised revenue, it appears that the problems of revenue instability and tax base mobility are not serious in these countries. Fiscal disparities have been greatly reduced through consolidation of government units and heavy reliance on transfers from the national government, and these institutional arrangements may have reduced local autonomy in some important respects. The heavy reliance on income taxes by all levels of government is one reason for the extremely high marginal tax rales to which most workers are subject.

Unshackling Foreign Corporations: Kiobel’s Unexpected Legacy

2013 ◽  
Vol 107 (4) ◽  
pp. 829-834 ◽  
Author(s):  
Anupam Chander
Keyword(s):  
United States ◽  
Human Rights ◽  
The United States ◽  
Human Rights Law ◽  
Human Rights Abuses ◽  
Foreign Corporations ◽  
Alien Tort Statute

The Supreme Court’s ruling in Kiobel v. Royal Dutch Petroleum Co. disfavors American corporations. While largely unshackling foreign corporations from the risk of being haled before an American court to answer for human rights abuses abroad, the decision keeps American corporations constrained by human rights law. This inconsistency exists because application of the Alien Tort Statute (ATS), as announced in Kiobel, turns on whether a corporation’s actions “touch and concern” the United States. American corporations are simply far more likely to satisfy that standard than foreign corporations.

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