[PDF] The Double Taxation Of Dividend Income eBook

Author : Marjaana Helminen
Publisher : Kluwer Law International B.V.
Page : 306 pages
File Size : 22,95 MB
Release : 2017-05-02
Category : Law
ISBN : 9041183957

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The distribution of profits between corporations resident in different jurisdictions gives rise to both significant tax planning opportunities and tax risks. As cross-border transactions between corporations grow in number and complexity, the question of how a profit distribution is classified for corporate income tax purposes becomes increasingly important, particularly in the context of issues such as double taxation, non-taxation and tax neutrality. The OECD BEPS project has only increased the relevance. This unique work discusses the international tax law rules determining which transactions may be classified and taxed as dividends and how possible classification conflicts may be resolved. The author examines the tax classification of various inter-corporate transactions, including: – Payments made under dividend-stripping arrangements. – Fictitious profit distributions. – Economic benefits in the context of transfer pricing. – Returns on debt-equity hybrids. – Interest payments in thin capitalization situations and distributions following liquidation. The analysis of each transaction refers to international tax law. Most weight is given to tax treaties and EU tax law, including the BEPS development. The approaches adopted in different states’ national tax law are covered by a more general analysis. The comprehensive coverage and the practical nature of The International Tax Law Concept of Dividend make it an essential acquisition for tax practitioners, researchers and tax libraries worldwide.

Author : Guglielmo Maisto
Publisher : IBFD
Page : 1093 pages
File Size : 30,64 MB
Release : 2012
Category : Corporations
ISBN : 9087221398

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This book is a detailed and comprehensive study on the taxation of cross-border dividend distributions. It first considers cross-border dividend taxation in the context of EU law. In this field, issues such as the jurisprudence of the European Court of Justice, the hindrance to the internal market caused by double taxation of dividends and the compatibility of dividend withholding taxes are dealt with. Next, the book discusses the taxation of dividends under tax treaties, in particular focusing on the definition of "dividends" in the OECD Model Convention and the meaning of the concept of "beneficial owner" as applied to dividends. The application of domestic and agreement-based anti-abuse rules to dividends is thoroughly analysed. Finally, the relevance of the non-discrimination provision enshrined in Art. 24 of the OECD Model Convention to dividends as well as procedural issues relating to treaty relief and possible ways of improvement are taken into consideration. Individual country surveys provide an in-depth analysis of the above issues from a national viewpoint in selected European and non-European jurisdictions.

Author : Steven A. Bank
Publisher :
Page : 91 pages
File Size : 44,69 MB
Release : 2003
Category :
ISBN :

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Corporate dividend policy has long been a source of concern in both tax and corporate law. From a tax law perspective, retained earnings potentially escape the high marginal rates imposed on shareholders. From a corporate law perspective, retained earnings increase agency costs for shareholders. With the steady drop in dividends in the last decade, concern over dividend policy has arisen once again. Many commentators attribute the disappearance of the dividend to our corporate income tax system, which quot;trapsquot; retained earnings in the corporation by subjecting dividends to two layers of tax. The assumption is that integrating the corporate and shareholders income taxes - either through a dividend exemption or some other technique - will lead corporations to pay out more money as dividends.Missing from this analysis is any historical perspective on the relationship between taxation and corporate dividend policies. The double taxation of corporate income actually emerged between World War I and II in response to a shift in corporate dividend policies, rather than vice versa. Over that period, managers agreed to a higher rate of tax at the corporate level, and, eventually, to the repeal of the dividend exemption at the shareholder level in exchange for Congress' tacit agreement not to interfere with managerial discretion over undistributed profits. This history not only belies the claim that double taxation is responsible for the disappearance of the dividend, but also suggests that integration of the corporate and shareholder income taxes may not have the effect on corporate dividend policies that its proponents claim.