Constitutional Restraints on Corporate Tax Integration

Walter Hellerstein (University of Georgia School of Law), Georg Kofler (NYU School of Law) and Ruth Mason (University of Connecticut School of Law) published the report Tax Law Review, Forthcoming. Available at SSRN:http://ssrn.com/abstract=1101560

Here is the Abstract:

States that conclude that double taxation of corporate profits unacceptably distorts the choice of business form, the debt and equity capitalization of companies, and the character and timing of profits distributions may adopt integrated corporate tax regimes, but states almost always limit such re gimes to domestic dividends¿those paid by a corporation taxable in the state to a shareholder also taxable in the state. In contrast, states generally deny double tax relief to cross-border dividends. Failure to extend relief to cross-border dividends distorts locational investment decisions.

Although restricting double tax relief to domestic dividends does not violate international tax nondiscrimination rules, more stringent nondiscrimination rules govern state taxation in the European Union and the United States. Member states of those common markets may not constitutionally prefer domestic commerce over cross-border commerce, and that constitutional constraint limits EU and U.S. states' ability to confine double tax relief to domestic dividends. This symposium paper establishes the basic framework for taxation of cross-border dividends, closely analyzes and compares constitutional challenges to states' failure to extend double tax relief to cross-border dividends in Europe and the United States, and identifies the principal policy considerations emerging from the nascent cross-border dividend jurisprudence in the European Court of Justice.

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What Problems and Opportunities are Created by Tax Havens?

Dhammika Dharmapala (University of Connecticut) published this paper.

Here is the Abstract:

Tax havens have attracted increasing attention from policymakers in recent years. This paper provides an overview of a growing body of research that analyzes the consequences and determinants of the existence of tax haven countries. For instance, recent evidence suggests that tax havens tend to have stronger governance institutions than comparable non haven countries.

Most importantly, tax havens provide opportunities for tax planning by multinational corporations. It is often argued that tax havens erode the tax base of high-tax countries by attracting such corporate activity. However, while tax havens host a disproportionate fraction of the world's foreign direct investment (FDI), their existence need not make high-tax countries worse off. It is possible that, under certain conditions, the existence of tax havens can enhance efficiency and even mitigate tax competition. Indeed, corporate tax revenues in major capital-exporting countries have exhibited robust growth, despite substantial FDI flows to tax havens.

Available at SSRN: http://ssrn.com/abstract=1279146

This Blog/Web Site ("Blog") does not to provide specific legal advice, it is for educational purposes only. This Blog is made available by the international adviser, lawyer or law firm for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice.

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Corporate Income Tax Reforms and International Tax Competition

Corporate Income Tax Reforms and International Tax Competition

Michael P. Devereux (Centre for Business Taxation, Oxford University), Rachel Griffith (University College, London; Institute for Fiscal Studies (IFS)) and Alexander Klemm (International Monetary Fund (IMF)) published this paper at Economic Policy, Vol.17-35, pp. 451-495, 2002

Here is the Abstract:

This paper analyses the development of taxes on corporate income in EU and G7 countries over the last two decades. We establish a number of stylised facts about their development. Tax-cutting and base-broadening reforms have had the effect that, on average across EU and G7 countries, effective tax rates on marginal investment have remained fairly stable, but those on more profitable investments have fallen. We discuss two possible explanations of these stylised facts arising from alternative forms of tax competition. First, governments may be responding to a fall in the cost of income shifting, which puts downward pressure on the statutory tax rate. Second, reforms are consistent with competition for more profitable projects, in particular those earned by multinational firms.

Available at SSRN: http://ssrn.com/abstract=639482

This Blog/Web Site ("Blog") does not to provide specific legal advice, it is for educational purposes only. This Blog is made available by the international adviser, lawyer or law firm for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice.

The Blog does not constitute legal advice and is not a substitute for competent legal advice from a licensed attorney in your state. Any comment posted on the Blog can be read by any Blog visitor; do not post confidential or sensitive information. Any links from another site to the Blog are beyond the control of us.

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The Blog should not be used as a substitute for competent legal advice from a licensed professional adviser or lawyer in your country.

Our firm and do not convey their approval, support or any relationship to any site or organization. The use of this Blog does not implicitly or explicitly convey any warranties or representations as to the accuracy of the information contained herein.

This Blog has created this privacy statement in order to demonstrate our firm commitment to privacy. The following discloses the information gathering and dissemination practices for this Blog.

This Blog takes your privacy very seriously. Our customers told us they want to see clear, easy-to-read information about our privacy commitments and policies. We have made our privacy policies easier to find and easier to read. And we're listening. We welcome your questions and feedback on our privacy policies, and invite you to contact us with your thoughts.

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• We will fully disclose our privacy policies in plain language, and make our policies easily accessible to you.
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http://www.jpa-iac.com/en/
http://www.braxton-co.com/en/
http://www.tax-international.com
http://www.braxton-group.com

The Impact of Taxes on Internet Purchase Behavior

No Longer a Tax Haven? The Impact of Taxes on Internet Purchase Behavior

Peng Huang (Georgia Institute of Technology) and Nicholas H. Lurie (Georgia Institute of Technology) published this study on September 2008.

Here is the Abstract:

Using the online transaction data of 88,814 U.S. households in 2006, we analyze how local tax rates affect online purchasing behavior. Although earlier survey-based research has found that consumers who live in high-tax localities are more likely to shop online, our transaction-based data show the opposite. We find that higher local tax rates are associated with lower online expenditures, reduced transaction frequency, and a lower probability of making an online purchase. A disaggregate analysis shows that increased sales tax does not significantly boost demand from tax avoiding retailers but significantly lowers demand for online retailers that collect tax. In addition online shoppers are more than twice as sensitive to tax as traditional store shoppers. Finally, we document that tax losses from Internet sales are more moderate than previously estimated.

Available at SSRN: http://ssrn.com/abstract=1266432

This Blog/Web Site ("Blog") does not to provide specific legal advice, it is for educational purposes only. This Blog is made available by the international adviser, lawyer or law firm for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice.
The Blog does not constitute legal advice and is not a substitute for competent legal advice from a licensed attorney in your state. Any comment posted on the Blog can be read by any Blog visitor; do not post confidential or sensitive information. Any links from another site to the Blog are beyond the control of us.
By using this blog site you understand that there is no attorney client relationship between you and the Blog.
The Blog should not be used as a substitute for competent legal advice from a licensed professional adviser or lawyer in your country.
Our firm and do not convey their approval, support or any relationship to any site or organization. The use of this Blog does not implicitly or explicitly convey any warranties or representations as to the accuracy of the information contained herein.
This Blog has created this privacy statement in order to demonstrate our firm commitment to privacy. The following discloses the information gathering and dissemination practices for this Blog.
This Blog takes your privacy very seriously. Our customers told us they want to see clear, easy-to-read information about our privacy commitments and policies. We have made our privacy policies easier to find and easier to read. And we're listening. We welcome your questions and feedback on our privacy policies, and invite you to contact us with your thoughts.
Customer Privacy Controls and Choices:• You can review and correct your Personal Information collected by us. • You can limit certain types of solicitation communications from AT&T, including marketing contacts made via telephone, e-mail and text messaging. • We will provide you with notice of changes to this policy.
Our privacy commitments are fundamental to the way we do business every day. These apply to everyone who has a relationship with this Blog and visitors. • We will protect your privacy and keep your personal information safe. We use powerful encryption and other security safeguards to protect customer data, when available. • We will not sell your personal information to anyone, for any purpose. Period. • We will fully disclose our privacy policies in plain language, and make our policies easily accessible to you. • We will notify you of any revisions to our privacy policy, in advance. No surprises. • You have choices about how this Blog uses your information for marketing purposes. Customers are in control.
This Privacy Policy identifies and describes the way This Blog uses and protects the information we collect about visitors. All use of this Blog is subject to this Privacy Policy.
Use of Location Information • When your wireless device is on, it sends periodic signals to the nearest cell site. We use that information to provide your wireless services; • You can use your wireless device to obtain a wide array of services based on the approximate location of the device, referred to as Location Based Services, or LBS. The information you receive in connection with your use of LBS may include advertisements related to your request and your location;
Online Activity Tracking and Advertising• We collect information about your activity on this Blog for a number of purposes using technologies such as cookies, Web beacons, widgets and server log files. • We and our advertising partners use that information, as well as other information they have or we may have, to help tailor the ads you see on our sites and to help make decisions about ads you see on other sites.
The Information We Collect, How We Collect It, And How We Use It
We collect different types of personal and other information based on your use of our products and services and our business relationship with you. Some examples include: • Contact Information that allows us to communicate with you -- including your name, address, telephone number, and e-mail address; • Equipment, Performance, Site Usage, Viewing and other Technical Information about your use of our network, services, products or Web sites.
We collect information in 2 primary ways:• You give it to us when you register to provide comments; • We collect it automatically when you visit our Blog.
We use the information we collect in a variety of ways, including to: • Provide you with the best visitor experience possible; • Deliver customized content that may be of interest to you; • Address network integrity and security issues; • Investigate, prevent or take action regarding illegal activities, violations of our Terms of Service or Acceptable Use Policies; and • For local directory and directory assistance purposes.
Aggregate or Anonymous Information:
We may share aggregate or anonymous information in various formats with trusted entities’ only for purposes such as: • Our knowledge, and offer of information that may be of interest to you; • Universities, laboratories and other entities that conduct scientific research; and • Media research companies for general information only.
More information:
http://www.jpa-iac.com/en/

http://www.braxton-co.com/en/

http://www.tax-international.com

http://www.braxton-group.com

España: inspecciones de impuestos sin papel

"Se acabó papel en las inspecciones de Hacienda de las empresas", articulo publicado el 29-09-2008 , por José Mª López Agúndez en Expansion.com:

Una consulta de la DGT permite “destruir el papel” una vez que se digitalicen las facturas. El criterio de Tributos se adelanta en el tiempo porque todavía son muy frecuentes las actuaciones en las que se pide papel. El sistema informático debe certificarse por Hacienda.

La Dirección General de Tributos (DGT) acepta y respalda que las empresas puedan presentar y conservar las facturas en formato digital para las inspecciones y requerimientos que realice la Administración.

En una consulta sobre deducción de cuotas soportadas del Impuesto sobre el Valor Añadido (IVA), la DGT explica de forma muy gráfica que una vez que los documentos de las empresas se digitalicen “se puede incluso destruir el papel”. El requisito imprescindible para poder beneficiarse de la tecnología es que la empresa cuenta con un sistema homologado o certificado por Hacienda.

Tributos ha estudiado la consulta realizada por una empresa que procesa un elevado número de documentos en papel, digitalizando todos ellos para ser incluidos en una base de datos. La compañía preguntaba a Hacienda sobre la validez como prueba de los documentos digitalizados en su correspondiente soporte ?disquetes, CD y cintas magnéticas? ante cualquier requerimiento de la Administración tributaria.

Lo que hace la DGT es interpretar la Orden 962/2007 sobre Facturación telemática y conservación electrónica de facturas del Ministerio de Economía. En esta norma se incluyen los requisitos del sistema de software que deben tener las empresas para digitalizar su documentación y en la Resolución de 24-X-2007 se recoge el procedimiento que tienen que seguir las empresas para conseguir que el director del departamento de Informática Tributaria de la Agencia homologue su sistema. También se incluyen los formatos, entre otros, el PDF y JEPG2000.

La principal característica que debe reunir el software es que “garantice la obtención de una imagen fiel e íntegra de cada documento y firmada con firma electrónica”. El sistema digital “certificado”, añade la consulta, tendrá que “organizarse en torno a una base de datos documental y que por cada documento digitalizado se conserve un registro de datos con todos los campos exigibles en la llevanza de los libros de registro”.

Según explica la DGT, “en la medida en que las facturas y documentos sustitutivos y cualesquiera otros documentos o justificantes pueden ser digitalizados y conservados por medios electrónicos, pudiéndose incluso destruir el papel, dicha documentación en soporte electrónico puede ser válida como medio de prueba en los procedimientos realizados ante la Administración tributaria”.

La consulta introduce una importante matización en lo que se refiere a la destrucción de los documentos. El contribuyente tendrá que tener en cuenta “el cumplimiento de las obligaciones que en otros ámbitos, como el mercantil, afecten a la conservación de dichos documentos”.

Es decir, no todo el papel tiene por qué desaparecer, ya que en otro tipo de ámbitos fuera de lo que es el procedimiento administrativo tributario, como las transacciones comerciales, puede ser relevante su conservación.

Por otro lado, la consulta recuerda que la Ley 37/1992 del IVA ya previó que “las facturas recibidas, los justificantes contables, las facturas expedidas y las demás copias deberán conservarse, incluso por medios electrónicos, durante el plazo de prescripción del impuesto”. De igual forma, esta norma también establece que la conservación de este tipo de documentos “se podrá cumplir por un tercero, que actuará en nombre y por cuenta del sujeto pasivo”.

Como explica Raúl Salas, socio del Área Fiscal de Baker & McKenzie, la importancia de esta consulta reside en que “la DGT se pronuncia sobre la validez del formato electrónico de facturas emitidas y recibidas en un momento en el que todavía se pide papel en las inspecciones e incluso cuesta que acepten la firma electrónica en determinadas situaciones”. Salas apunta que el documento o la factura digitalizado tiene que ser “inalterable”.