INTERNATIONAL TAXATION

Paulina has never been in the United States prior to her move to San Francisco on February 1, Year 1. Paulina moved to San Francisco after having applied for (and received) a green card from the United States Citizenship and Immigration Services. She has lived in San Francisco since that time. Is Paulina a resident alien for Year 1? Under what test(s) might she be construed to be a resident? What is her residency starting date? Why does it matter? Meets Greencard and Presence test, 2/1/1 start ...

Types of deal Proprietary sale (preferred for small cap) Auction (usually for big deals) Joint-Venture 2 types of Proprietary Sale Asset deals vs. Share deals 2 types of auction Public deals vs. Private deals Deal size - Small Cap < $30 Mio. Deal size - Mid Cap $30 - 300 Mio. Deal size - Big Cap $300 Mio - 1 Bn. Deal size - Jumbo > $1 Bn. Data room Place where all information enabling the bidder to make investment decisions Data rooms are often virtual, except for these 2...

Taxable subject The person or entity that is taxed Taxable object The tax base. What is taxed (ex. Income or capital) Net capital importing country More capital is invested in the country by foreigners than locals are investing overseas (dependent on investments by foreigners for its economy to grow) Net capital exporting country More is invested overseas by locals than foreigners are investing in the country (wealthy country, entities invest their surplus outside) International tax Bod...

Explain VAT? - Tax on consumption - A consumption tax system would shift the time of collection from when money is earned to when money is spent. - If you are the end consumer you can get a tax return but as a company but as a company you pay VAT but also charge VAT for the government, with input and output VAT. - Output vat: sales, charges to our clients, input vat: purchases and expenses, paid to our suppliers - If vat is negative then you can ask for VAT refund or carry forward. If VAT i...

what is the international tax law? International tax law - all the rules that, in a cross-border context, determine where and how income can be taxed. what is meant by the "right tax" as a central concept? the right of a state to levy tax requires a connecting factor ('nexus') with the territory of that state. what are the two types of nexus - subjective nexus - generally the taxpayer's place of residence, unlimited taxing rights, i.e. the taxpayer is liable to tax on worldwi...

Question: What does international tax law encompass in a cross-border context? International tax law comprises rules that determine how and where income can be taxed across international borders. Question: What is the central concept in international tax law regarding taxation rights? The 'right to tax' represents a state's sovereignty, requiring a nexus (connecting factor) with its territory to levy taxes. Question: What are the two types of nexus relevant to international taxation...

Tax a forced payment by the taxed unit to the government (independent of the value of government services or goods) Functions of Taxes Raising final revenue to cover costs, encouraging/discouraging certain activities, social/environmental changes, mitigating effect of inflation, redistribution of wealth Good Tax fair, certain, convenient, economical, simple Horizontal equity similar taxpayers should be treated the same Vertical equity different taxpayers should be treated differently S...

Residence-based taxation - depends on country's relationship to taxpayer (citizen or resident) - residence country has primary taxing jurisdiction as a matter of international law Tax on worldwide income for US persons - outbound tax regime - US entities/individuals exporting/licensing/rendering services or other business activity outside of the US US persons 1. Citizens and resident aliens 2. US corporations 3. US partnerships 4. US trusts and estates US citizens Citizens for imm...

Direct taxes Taxes paid directly to the government tax authorities by the taxpayer, including personal income taxes, corporate income taxes, and wealth taxes. Indirect taxes - Consumption taxes - Withholding taxes - Value-added tax - Border tax - Transfer tax Purpose of Taxes - Source of income - Supporting the politics of a country - Competition VAT Switzerland 2009: 7.7% support the disability insurance Tax rate 8% Since 2018 Tax rate 7.7% 2022: 8.1% Indirect Taxes Definition...

ability to pay principle the idea that taxes should be levied on a person according to how well that person can shoulder the burden Leistungsfähigkeitsprinzip Accounting Methods Gewinnermittlungsmethoden Administrative source Verwaltungsvorschriften Agricultura and Forest activities Land- und Forstwirtschaft alimony Unterhalt Annuities Jahresrente assesed value Einheitswert Asset and liability Recording rule Bilanzierungsvorschrift Beer tax Biersteuer Bilateral Method Bilater...