International Tax News Blog

Archives: December 2019

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  • Designing and Implementing a Destination-Based Corporate Tax

    Logo SSRNBy Michael P. Devereux and Rita de la Feria

    The authors argue that the current international tax system based upon the principles of source and residence is no longer suited to a globalised world economy, and the fundamentals of the international tax system need to be re-examined. They propose an R+F based cash-flow tax based on the principle of destination as a suitable alternative to taxing corporations in an international setting. The paper’s aim is to discuss the legal and practical issues which would arise in the implementation of such a tax, namely how a destination-based tax could be effectively designed and implemented. For this purpose the authors draw on experiences with designing VAT systems worldwide. It is proposed that the destination principle should be implemented through use of the customers’ location as the main legal proxy.

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    By Michael P. Devereux and Rita de la Feria, posted on Wednesday December 4, 2019
  • How Europe’s ‘Digital Tax’ Plans Will Hit U.S. Tech Companies

    BloombergBy William Horobin and Aoife White

    Big internet companies have long been the target of complaints that they don’t pay enough in taxes. Fed up, France imposed a 3% levy on the digital revenue of companies that make their sales primarily in cyberspace, such as Facebook Inc. and Alphabet Inc.’s Google. Other countries also are targeting companies, most of which are American, that have multinational earnings that often escape the taxman’s grip. The U.S. isn’t taking this sitting down.

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    By William Horobin and Aoife White, posted on Wednesday December 4, 2019
  • U.S. Proposes Duties on $2.4 Billion of French Goods Over Tech Tax

    BloombergBy William Horobin, Jenny Leonard, and Laura Davison

    The U.S. proposed tariffs on roughly $2.4 billion in French products, in response to a tax on digital revenues that hits large American tech companies including Google, Apple Inc., Facebook Inc. and Amazon.com Inc.

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    By William Horobin, Jenny Leonard, and Laura Davison, posted on Wednesday December 4, 2019
  • Ireland Dangerously Reliant on Company Taxes, Watchdog Says

    BloombergBy Peter Flanagan

    Ireland is too reliant on corporation tax from a small number of international operations to fund spending, the state’s fiscal watchdog warned.

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    By Peter Flanagan, posted on Wednesday December 4, 2019
  • Japan’s Retail Sales Plunge on Sales Tax Hike, Typhoon

    BloombergBy Yoshiaki Nohara

    Japanese retail sales plunged in October after a sales tax hike and a super-typhoon kept shoppers at home, a factor the government is likely to consider as it mulls the size of a spending package to support growth.

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    By Yoshiaki Nohara, posted on Wednesday December 4, 2019
  • EU to Push for Tech Tax If Global Effort Fails, Vestager Says

    BloombergBy Natalia Drozdiak and Maria Tadeo

    The European Union will still pursue a digital tax even if a global push at the OECD fails, the EU’s new digital czar told Bloomberg TV.

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    By Natalia Drozdiak and Maria Tadeo, posted on Wednesday December 4, 2019
  • Mexico May Speed Up Tax Overhaul If 2020 Revenue Disappoints

    BloombergBy Eric Martin and Andrea Navarro

    Mexican President Andres Manuel Lopez Obrador’s administration may speed up plans for a tax overhaul to generate more revenue if 2020 budget assumptions turn out to be overly optimistic, a top official said.

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    By Eric Martin and Andrea Navarro, posted on Wednesday December 4, 2019
  • Treasury Aims Tax Fix to Keep $40 Billion R&D Spending in U.S.

    BloombergBy Siri Bulusu

    The Treasury Department offered some relief to companies that lost foreign tax credits after investing in research and development operations in the U.S.

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    By Siri Bulusu, posted on Wednesday December 4, 2019
  • U.S. Minimum Tax Should Be OK in Global Plan, Businesses Say

    BloombergBy Isabel Gottlieb

    Companies are making the case they shouldn’t face new rules and standards to comply with a global minimum tax plan.

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    By Isabel Gottlieb, posted on Wednesday December 4, 2019
  • U.S. Sanctions Over Digital Tax Would Make No Sense: Le Maire

    BloombergBy William Horobin and James Regan

    French Finance Minister Bruno Le Maire says it would be “incomprehensible“ for the U.S. to sanction France for the introduction of a tax on digital revenue.

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    By William Horobin and James Regan, posted on Wednesday December 4, 2019


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