Back Matter

Back Matter

Author(s):
Victor Thuronyi
Published Date:
June 1998
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    Comparative Tax Law Bibliography

    This is a basic bibliography for the study of comparative tax law. On the assumption that many readers will prefer books in English, for jurisdictions with a language other than English, some books in English have been included, even if outdated. The bibliography is purposely short so as to be manageable; this has required many excellent books to be excluded. Those studying more deeply the tax laws of particular countries will no doubt be able to locate these books without too much difficulty. We do not list separately the Cahiers de droit fiscal international, published annually by the International Fiscal Association, which are extremely useful on specialized topics, or the publications of the International Bureau of Fiscal Documentation (see its annual catalogue). See also the annual catalogue of Kluwer, which contains a number of works in comparative tax law and comparative law generally.

    ArgentinaEnrique J. Reig, Impuesto a las Ganancias (Ediciones Macchi 1991). ISBN: 950-537482-9.
    AustraliaGraeme S. Cooper et al., Income Taxation: Commentary and Materials (2d ed., Law Book Co. 1993). ISBN: 0-455-21165-5.

    Geoffrey Lehmann and Cynthia Coleman, Taxation Law in Australia (3rd ed., Butterworths 1994). ISBN: 0-409-30866-8.

    Robin Woellner et al., Australian Taxation Law (8th ed., CCH Australia 1997). ISBN: 1-86264-918-9.
    BelgiumPierre Coppens and André Bailleux, Droit fiscal (2 vols.) (2d ed., Maison Larcier 1992).

    Jacques Malherbe, Droit fiscal international (Maison Larcier 1994). ISBN: 2-8044-0128-6.

    Albert Tiberghien, Belgian Taxation: An Outline (Kluwer 1987). ISBN: 90-6544-342-8.

    Albert Tiberghien, Manuel de droit fiscal (16th ed., Kluwer 1995). ISBN: 2-87377-1879.
    CanadaErnst & Young, The Complete Guide to the Goods and Services Tax (The Canadian Institute of Chartered Accountants 1990). ISBN: 0-88800-248-3.

    Vern Krishna, The Fundamentals of Canadian Income Tax (5th ed., Carswell 1995). ISBN: 0-459-57455-8.
    FranceMaurice Cozian, Précis de fiscalité des enterprises (15th ed., Litec 1991). ISBN: 2-7111-2059-7.

    Direction Générale des Impôts, Précis de fiscalité (annual).

    Claude Gambier and Jean Ives Mercier, Les Impôts en France (1991).

    Guy Gest and Gilbert Tixier, Droit fiscal international (4th ed., Presses Universitaires de France 1986). ISBN: 2-1030-432352.

    Harvard Law School, International Program in Taxation: Taxation in France (Commerce Clearing House 1966).

    Thierry Lambert, Contrôle fiscal: Droit et pratique (Presses Universitaires de France 1991). ISBN: 2-13-044018-5.

    Gilbert Tixier and Guy Gest, Droit fiscal international (2d ed., Presses Universitaires de France 1990). ISBN: 2-13-043235-2.
    GermanyHarvard Law School, International Program in Taxation: Taxation in the Federal Republic of Germany (Commerce Clearing House 1963).

    Brigitte Knobbe-Keuk, Bilanz- und Unternehmenssteuerrecht (9th ed., O. Schmidt 1993). ISBN: 3504-2066.

    Joachim Lange and Klaus Tipke, Steuerrecht: Ein systematischer Grundriss (13th ed., O. Schmidt 1991). ISBN: 3-504-20046-4.

    Klaus Tipke, Die Steuerrechtsordnung (O. Schmidt 1993). ISBN: 3-504-201010.

    Klaus Vogel, Klaus Vogel on Double Taxation Conventions (Kluwer Law and Taxation Publishers 1991). ISBN: 90-6544-447-5.
    ItalyAugusto Fantozzi, Diritto Tributario (1994). ISBN: 88-02-4454-6.

    Raffaello Lupi, Diritto Tributario (2 vols.) (4th ed., Giuffré 1996). ISBN: 88-14-06224-2, 88-14-06281-1.

    Memento Pratico, IPSOA-Francis Lefebvre Fiscale, 1997. ISBN: 88-217-0958-2.
    JapanYuji Gomi, Guide to Japanese Taxes 1994–95 (Zaikei Shôhô Sha) (annual). ISBN: 4-88177436-1.

    Hiromitsu Ishi, The Japanese Tax System (Clarendon Press 1993). ISBN: 0-19-828616-3.

    Ministry of Finance, Tax Bureau, An Outline of Japanese Taxes (Printing Bureau, Ministry of Finance) (issued annually; obtainable from Seifu Kankobutso Service Center, 1-2-1 Kasumigaseki, Chitoda-ku, Tokyo 100).
    MexicoEmilio Margáin Manautou, Introducción al Estudio de Derecho Tributario Mexicano (Editorial Porrúa 1996).
    NetherlandsGerrit te Spenke, Taxation in the Netherlands (3rd ed., Kluwer Law and Taxation Publishers 1995). ISBN: 9-0654-5994.
    South AfricaCosta Divaris and Michael L. Stein, Silke on South African Income Tax (1989 with loose-leaf updates). ISBN: 0-7021-1336-0.
    SpainCésar Albiñana, Sistema Tributario Español y Comparado (2d ed., Editorial Tecnos 1992). ISBN: 84-309-2118-4.
    SwedenHarvard Law School, International Program in Taxation: Taxation in Sweden (Little, Brown and Co. 1959).
    SwitzerlandHarvard Law School, International Program in Taxation: Taxation in Switzerland (Commerce Clearing House 1976).

    Ernst Höhn, Ein Grundriss des Schweizerischen Steuerrechts für Unterricht und Selbststudium (7th ed., Paul Haupt 1993). ISBN: 3-25804-7375.

    Jean-Marc Rivier, Droit fiscal suisse: L’imposition du revenu et de la fortune (Editions Ides et Calendes 1980).

    Walter Ryser and Bernard Rolli, Précis de droit fiscal suisse (3d ed., Editions Staempfli 1994). ISBN: 3-7272-0956-9.
    United KingdomButterworths U.K. Tax Guide (John Tiley ed.) (annual).

    Chris Whitehouse et al., Revenue Law—Principles and Practice (15th ed., Butterworths 1997). ISBN: 0-40689-4949.
    United StatesBoris I. Bittker and James S. Eustice, Federal Income Taxation of Corporations and Shareholders (6th ed., Warren, Gorham & Lamont 1994). ISBN: 0-79131-8656.

    Boris I. Bittker and Lawrence Lokken, Federal Taxation of Income, Estates and Gifts (5 vols.) (2d ed., 1989).

    Bruce Hopkins, The Law of Tax-Exempt Organizations (6th ed., Wiley 1992). ISBN: 0-471-555-101.

    Joseph Isenbergh, International Taxation: U.S. Taxation of Foreign Persons and Foreign Income (2d ed., loose-leaf, Little, Brown, and Co. 1996). ISBN: 0-31643-2903 (v. 1); 0-31643-2938 (v. 2); 0-31643-2512 (v. 3).

    William S. McKee, William F. Nelson, and Robert L. Whitmire, Federal Taxation of Partnerships and Partners (2d ed., Warren, Gorham, & Lamont 1990, with annual supplements). ISBN: 0-7913-2970-4.

    Michael I. Saltzman, IRS Practice and Procedure (2d ed., Warren, Gorham & Lamont 1991, with supplements). ISBN: 0-7913-2019-7.

    Stanley S. Surrey et al., Federal Income Taxation: Cases and Materials (Foundation Press 1986). ISBN: 0-88277-3275.
    GeneralHugh Ault et al., Comparative Income Taxation: A Structural Analysis (Kluwer 1997). ISBN: 90-411-0605-7.

    Sijbren Cnossen, Excise Systems: A Global Study of the Selective Taxation of Goods and Services (Johns Hopkins 1977). ISBN: 0-8018-1962-8.

    Organization for Economic Cooperation and Development, Taxpayers’ Rights and Obligations: A Survey of the Legal Situation in OECD Countries (1990). ISBN: 92-64-13390.

    Alan A. Tait, Value-Added Tax: International Practice and Problems (IMF 1988). ISBN: 1-55775-012-2.

    Ben Terra and Peter Wattel, European Tax Law (Kluwer Law and Taxation Publishers 1993). ISBN: 90-6544-784-9.

    Tax Policy for Developing Countries

    There are many books, but by consulting the following, which have been published in the past few years, and the references listed in these, the reader should be able to locate most of the literature.

    • Ehtisham Ahmad and Nicholas Stern, The Theory and Practice of Tax. Reform in Developing Countries (Cambridge University Press 1991). ISBN: 0-521-39742.

    • Richard M. Bird and Oliver Oldman, eds., Taxation in Developing Countries (4th ed., Johns Hopkins 1990). ISBN: 0-8018-4265-4.

    • Richard M. Bird, Tax Policy and Economic Development (Johns Hopkins 1992). ISBN: 0-801-842239.

    • Malcolm Gillis, ed., Tax Reform in Developing Countries (Duke University Press 1989). ISBN: 0-82230-8983.

    • Malcolm Gillis, Carl S. Shoup, and Gerardo P. Sicat, eds., Value Added Taxation in Developing Countries (World Bank 1990).

    • Richard Goode, Government Finance in Developing Countries (Brookings 1984). ISBN: 0-815731-965.

    • Richard Goode, Tax Advice to Developing Countries: An Historical Survey, 21 World Development 37 (1993).

    • Javad Khalilzadeh-Shirazi and Anwar Shah, eds., Tax Policy in Developing Countries (World Bank 1991). ISBN: 0-8213-1990-6.

    • Charles E. McLure et al., The Taxation of Income from Business and Capital in Colombia (Duke University Press 1990). ISBN: 0-8223-0925-4.

    • David Newbery and Nicholas Stern, eds., The Theory of Taxation for Developing Countries (Oxford 1987). ISBN: 1-55775-490.

    • Parthasarathi Shome, ed., Tax Policy Handbook (IMF 1995). ISBN: 1-55775-490-X.

    • Alan Tait, ed., Value-Added Tax: Administrative and Policy Issues, Occasional Paper No. 88 (IMF 1991). ISBN: 1-55775-184-6.

    • Vito Tanzi, Public Finance in Developing Countries (Edward Elgar 1991). ISBN: 1-85278-374-5.

    • Wayne Thirsk, ed., Tax Reform in Developing Countries (1997). ISBN: 0-8213-3999-0.

    Bibliography of National Tax Laws of IMF Member Countries

    A number of publications provide summaries of the tax laws of the world’s countries.1 The full text of the laws, however, is not available in one place. Nor is there a bibliography that lists the tax laws of each country and where the full text may be obtained. This bibliography seeks to fill this gap. It should be of use to those interested in obtaining the text of the tax laws of a particular country or in getting a sense of the structure of the tax legislation. Its panoramic aspect should make it of interest to those studying comparative tax law. For those engaged in tax law reform internationally, the laws listed in this bibliography represent the raw material for such an effort.

    This bibliography is believed to be the most comprehensive currently available in one book. Yet, given resource constraints, it has not been possible on this first attempt to produce a complete list of tax laws.2 We have, however, listed sources for the principal tax laws for virtually all IMF member countries. In the case of laws, primarily for minor taxes, where we have not identified sources, we have tried to list the taxes or tax laws in force.3

    Even as a matter of theory, a comprehensive listing of tax laws is elusive, as the concept of a tax law is an elastic one. We have generally excluded customs laws, although these are relevant for some taxes, such as the value-added tax and excises. Although similar to taxes, customs duties are traditionally thought of separately from taxes, largely for institutional reasons, and, given that this book does not cover customs, they are not included here. We have also not included laws on social security contributions in a systematic way, except when these are included in collections of tax laws.4 Moreover, besides the laws that impose taxes, there are often tax provisions in other laws (usually relieving some deserving industry or group from tax), such as laws on investment or specialized laws for particular industries. To understand the tax laws, reference will often have to be made to provisions of other laws that are not specific to tax, such as the constitution, the civil or commercial code, the criminal code, the code of civil procedure, labor laws, and others. To identify all the relevant provisions would be a significant effort, requiring experts in each country to be consulted, and this task has not been attempted. Tax treaties are also not included in our listing, because comprehensive collections of tax treaties are available.5

    The distinction between taxes and tax laws should be kept in mind. A tax law may impose more than one tax. Some tax laws do not impose a tax; for example, a tax law may govern procedure, or exemptions, or certain aspects of a tax, so that several laws must be considered together in order to understand the rules applicable to a single tax. This bibliography generally lists the tax laws, not the taxes.

    The bibliography is limited to national tax laws; thus, taxes of political subdivisions of a country are generally not included. Moreover, only the basic laws themselves are included, and not the regulations and other secondary legislation. Only the most recently available texts that have been located by the compilers are included in this list. For countries that have codified all their tax laws in one tax code, this bibliography contains only one entry, namely, for the tax code. Reference to the tax code itself will be sufficient for most cases; however, practitioners in these countries also consult the amending laws because not all amendments, particularly those that are transitional or those with a narrow scope of application, take the form of textual amendment to the code. No attempt is made here, however, to list all the amending laws, both because this would be a laborious exercise and because those with a sufficient interest can be expected to have access to these laws already.

    The bibliography also sets forth complete citations for the laws cited in the footnotes in this volume. For example, in the footnotes, the Profit Tax Law of Albania is cited as ALB PT. The abbreviations used in the footnotes are noted in the relevant entry for the law.

    Notes to the Bibliography

    The format is generally as follows: number of law, title of law (in original language), translation of title, date of enactment, and citation to official gazette or the source where the law is reprinted.

    For laws that have been consolidated, the amending acts are not listed. Only the date of the last amendment or the date of the consolidation is indicated. Where amending acts are listed, they are indented.

    Where laws have been obtained from a commercial publisher, the publisher’s name (and, if available, contact details) is indicated. Presumably, the most up-to-date revision will be available from these publishers.

    Where the original language of the legislation is not English, the language of the law or of the translation available is indicated.6

    For some countries, a brief explanatory note precedes the entry.

    Tax Law Compendia That Cover Multiple Jurisdictions

    Tax Laws of the World

    In a multivolume loose-leaf series called Tax Laws of the World, Foreign Tax Law Publishers produces an English translation of the major tax laws of many countries, cited in this bibliography as TLW. The current list of available laws is available on the Internet (http://www.foreignlaw.com).

    Latin America

    A collection of tax legislation, limited to Latin American countries, can be found on a compact disk published by the International Bureau of Fiscal Documentation (IBFD), which is updated annually. The laws contained in this collection are cited here. The IBFD collection does not include all the tax laws of the countries covered, but it does include the major tax laws. They are in full text in the original language only (Spanish or Portuguese). Some regulations are also included.

    Tax Analysts

    Electronic databases are becoming increasingly important. TaxBase, which is published in conjunction with Tax Notes International, makes available the full text of an increasing number of tax laws, and this bibliography indicates when the source as of the time of publication is TaxBase. TaxBase is available on the Internet by subscription. In most cases, what is available is an English translation. TaxBase also contains articles and other information besides the text of laws. Tax Analysts also publishes on a CD, called the North American OneDisc, the tax laws of Canada (in French and English), Mexico (in Spanish and English), and the United States.

    Lexis

    Although Lexis contains an astounding amount of material, collections of non-U.S. law are limited. Extensive collections exist for a few countries, but there is little or nothing for most countries. Instead of indicating in this list all the countries represented in Lexis, we have assumed that subscribers to Lexis will consult the annual catalogue for what is available.

    Central and Eastern European Legal Texts

    This is a series of translations published by Columbia University, which we cite as CEEL (also available on Lexis). These cover only a fraction of the legislation of the region, and most of the tax laws are out of date although the translations are generally of high quality.

    Other Internet Sites

    The information superhighway contains a number of seductive billboards promising various things, including foreign laws. However, when one gets to the relevant site it often seems to be “in development.” This is not the place to give a guide to such sites, which in any event are constantly changing. We include a few citations. So far, not many tax laws are available in full text on the Internet, although this is likely to change over the coming years.

    Foreign Law: Current Sources of Codes and Basic Legislation

    For a general guide to finding legislation, a multivolume work published in 1989 provides a guide to obtaining laws of the world’s countries.7 It contains some references to tax laws, but because it is a general work those references are less detailed than the ones found here.

    Finding a Country’s Tax Laws

    To find the tax laws of a particular country, besides consulting the listing in this bibliography, readers may find it helpful to consult the sources described in the section Notes to the Bibliography, above, and the summaries described in note one above. These sources are periodically updated, and a law for a particular country might subsequently be found in one of these places even if it is not listed in this bibliography. Because amendments to tax laws are made every year in most countries, the listing in this bibliography will not be up to date at the time it is consulted. However, one can generally obtain a current version by asking for the latest edition of the works cited.

    Tax laws are, of course, enactments of the legislature, and one can therefore always find them by consulting the session laws of the particular country. The session laws are a chronological publication of the enactments of the legislature. They may be published in the official gazette or in a separate publication reserved for acts of the legislature.8 The session laws will have to be consulted to update any consolidated text of the law.

    While it is possible to rely solely on the session laws, this is not usually desirable in the tax area. The reason is that, unless the tax law in question is a new one, there will usually have been a number of amending laws. If one can locate all of these, then it is possible to ascertain the text of the law as amended by consolidating all the amendments. This work being somewhat tedious, it normally does not make sense to do it if someone else has already done so.

    There are several different types of sources for consolidations. Commercial publications are normally timely and for many countries are not very expensive. In a number of countries, commercial publishers have put together a consolidated collection of the tax laws in one or more volumes. In countries for which we have located a commercial publisher, a listing is included in this bibliography. We have not, however, tried to list all available commercial publishers in countries where there is more than one. In addition to paper copies of legislation, electronic versions of tax legislation are increasingly becoming available. Often, regulations, cases, and other materials are included. We have not included these sources here; they will presumably be known to practitioners in the country concerned.

    A second type of source for consolidations is the ministry of finance or the tax authority. Often, one of these agencies publishes a consolidation, particularly in countries where no commercial publisher has done so.

    Finally, in a number of countries, particularly English-speaking ones, the consolidated laws are periodically published by the government printer.9 Usually the consolidation is done pursuant to authority of a law and has legal effect. In some cases, a consolidation is done every decade or so. In others, the consolidation is kept up to date with loose-leaf inserts. Where such a consolidation is cited, we have also tried to include citations to the laws passed after the date of the consolidation.

    Recognizing that many readers will need translations of the laws rather than the laws in the original language, we have listed translations in the bibliography, although not on a comprehensive basis. Multijurisdictional sources for translations are listed in the section Notes to the Bibliography. In addition, the bibliography lists commercial publishers in specific countries that have published translations.

    Abbreviations Used in Bibliography

    TLW

    Tax Laws of the World

    IBFD-CIAT

    CD-ROM published by the International Bureau of Fiscal Documentation

    TaxBase

    database found at http://www.taxbase.tax.org

    EU Inventory

    Inventory of Taxes in the European Union

    CEEL

    Central and Eastern European Legal Texts

    NTIS

    National Technical Information Service, U.S. Department of Commerce

    GLIN

    Global Legal Information Network, a Library of Congress website

    Tax Laws

    Afghanistan, Islamic State of (AFG)

    Income Tax Law, reprinted in TLW (as amended to May 1978) [in English].

    Foreign and Domestic Private Investment Law (as amended to May 1978), id.

    Albania (ALB)

    The official gazette (in Albanian) is called Fletorja zyrtare. We have relied on Compilation of Legal Acts of Albania as Amended: Taxation, by The Albania Law Report, Tirana, Albania, published by ALBAL SH.P.K.

    Ligj nr. 7676, Për tatimin mbi qarkullimin (Law on Turnover Tax), Mar. 2, 1993, reprinted in The Albania Law Report (Albal SH.P.K. Tirana), Compilation of Legal Acts of Albania as amended as of Apr. 1996 [in Albanian, English].

    PT—Ligj nr. 7677, Për tatimin mbi fitimin (Law on Profit Tax), Mar. 3, 1993 [in Albanian, English], id.

    Ligj nr. 7678, Për akcizat në Republikën e Shqipërisë (Law on Excise Tax in the Republic of Albania), Mar. 9, 1993 [in Albanian, English], id.

    Ligj nr. 7679, Për tatimin mbi biznesin e vogël (Law on Small Business Tax), Mar. 3, 1993 [in Albanian, English], id.

    Ligj nr. 7681, Për administrimin e tatimeve dhe taksave në Republikën e Shqipërisë (Law on the Administration of Taxes in the Republic of Albania) [in Albanian, English], id.

    Ligj nr. 7758, Për dokumentimin dhe mbajtjen e llogarive për tatiment (Law for Documentation and Keeping Documents for Taxes), Oct. 12, 1993 [in Albanian, English], id.

    Ligj nr. 7777, Për sistemin e taksave në Republikën e Shqipërisë (Law for the Fee System in the Republic of Albania), Dec. 22, 1993 [in Albanian, English], id.

    Ligj nr. 7786, Për tatimin mbi të ardhurat personale (Law for Personal Income Tax), Jan. 27, 1994 [in Albanian, English], id.

    Ligj nr. 7805, Për tatimin mbi pasurinë (Law for Property Tax in the Republic of Albania), Mar. 16, 1994 [in Albanian, English], id.

    Ligj nr. 7928, Për tatimin mbi vlerën e shtuar (Law for Value Added Tax), Apr. 27, 1995 [in Albanian, English], id.

    Law № 7680 on the Tax System in the Republic of Albania, Mar. 9, 1993 [in English].

    Algeria (DZA)

    Codes des impôts directs (Code of Direct Taxes), reprinted in Direction générale des impôts, Code des impôts directs et taxes assimilées (Office des publications universitaires 1992) [in French].

    Tax on Global Income and Tax on Company Profits, reprinted in TLW (as amended up to Oct. 1993) [in English].

    Value Added Tax, reprinted in TLW (as amended to Oct. 1993) [in English].

    Ordonnance № 95-27, Dec. 30, 1995, portant loi de finances pour 1996, Journal officiel, Dec. 31, 1995 [in French].

    Angola (AGO)

    As of 1993-94, the following taxes were in effect in Angola: imposto sobre os rendimentos do trabalho (tax on earned income), imposto sobre o aplicação de capitais (tax on capital income), imposto industrial (industrial tax), imposto de produção de petróleo (oil production tax), imposto de rendimento de petróleo (oil income tax), imposto de transações sobre o petróleo (tax on petroleum transactions), imposto de consumo (consumption tax), imposto predial urbano (urban real estate tax), imposto sobre as sucessões e doações (inheritance and gift tax), sisa sobre a transmissção de imobiliários por título oneroso (real estate transfer tax), and imposto de selo (stamp tax). Royalties and other special regimes apply to mining companies. In terms of legislation, the only reliable source we have found thus far is the official gazette (Diário da república).

    Legislative Decree № 3868, General Tax Code and Income Tax Law, reprinted in 1 TLW (as amended to Aug. 1984) [in English].

    Lei № 14/96 de Alteração ao código geral tributário (Amendment to the General Tax Code) Diário da república, May 31, 1996 [in Portuguese].

    Codigo do imposto industrial (actualizado) (Industrial Tax Code) (mimeo publication by Direcção Nacional de Impostos) [in Portuguese].

    Lei № 12/92 que aprova o novo código de imposto sobre os rendimentos do trabalho (Law Approving the New Code of the Tax on Labor Income), Diário da republica, June 19, 1992 [in Portuguese].

    Lei № 9/89 dos crimes contra a economia (Law on Economic Crime), Diário da república, Dec. 11, 1989 (see art. 38 on tax fraud) [in Portuguese].

    Imposto de selo (Stamp tax), amended by Decree № 67/91, Diário da república, Nov. 15, 1991 [in Portuguese].

    Lei № 4/96 dá nova redacção ao artigo 114-A da tabela geral do imposto do selo (Law on the New Wording of Art. 114-A of the General Table on Stamp Tax), Diário da república, April 12, 1996 [in Portuguese].

    Lei № 6/96 dá nova redacção aos artigos 17 e 28 do código do imposto predial urbano, (Law on the New Wording of Arts. 17 and 28 of the Urban Property Tax Code), Diário da república, Apr. 19, 1996 [in Portuguese].

    Lei № 7/96 dá nova redacção ao artigo 32 do código do imposto industrial (Law on New Wording of Art. 32 of the Industrial Tax Code), Diário da república, Apr. 19, 1996 [in Portuguese].

    Lei № 12/96 que cria a unidade de correção fiscal (Law Creating Unit of Fiscal Adjustment) [i.e., inflation adjustment], Diário da república, May 24, 1996 [in Portuguese].

    Antigua and Barbuda (ATG)

    A consolidated index of statutes and subsidiary legislation (as of Jan. 1, 1996) has been published by the Faculty of Law Library, University of the West Indies, Barbados. This lists the amending laws, and so they will not be listed here. The tax laws are listed below. The following taxes also apply: education levy (Board of Education Act 1994), social security levy, medical benefits levy (Medical Benefits Act 1978), telecommunications tax, insurance premium levy, casino tax, lottery and betting tax, and foreign currency levy.

    Business Tax Act (Cap. 65).

    Consumption Tax Act 1993.

    Cruise Passenger Tax Act (Cap. 122).

    Customs Service Tax Act (Cap. 128).

    Customs Service Tax (Continuation) Act (Cap. 129).

    Embarkation Tax Act (Cap. 146).

    Entertainment Duty Act (Cap. 154).

    Excise Act (Cap. 158).

    Fiscal Incentives Act (Cap. 172).

    Football Pool Betting Tax Act (Cap. 174).

    Hotel Guest (Levy) Act (Cap. 202).

    Hotels Tax Act (Cap. 205).

    Income Tax Act (Cap. 212).

    Income Tax (Federal Endowments) Act (Cap. 151).

    Land Sales Duty Act (Cap. 236).

    Property Tax Act (Cap. 348).

    Provisional Collection of Taxes Act (Cap. 351).

    Rum Duty Act (Cap. 388).

    Stamp Act (Cap. 410).

    Timesharing Tax Act (Cap. 428).

    Travel Tax Act (Cap. 438).

    Argentina (ARG)

    Cites to B.O. are to the official gazette: Boletín oficial de la República Argentina; for the compilation of amendments, we have relied on a private publisher: La Ley. It issues annually a thick two-volume set of tax legislation (Legislación impositiva). This is more comprehensive than IBFD-CIAT.

    Ley № 11.683, Procedimiento para la aplicación, percepción y fiscalización de impuestos (Procedures for the Application, Collection and Inspection of Taxes), B.O., Dec. 11, 1978 (as amended to Dec. 1996), reprinted in Legislación impositiva, La Ley [in Spanish], and in IBFD-CIAT [in Spanish].

    Ley № 23.771, Régimen penal tributario (Criminal Legislation as Relating to Tax), B.O., Feb. 27, 1990 (as amended by Law № 23.871, B.O., Oct. 31, 1990), reprinted in Legislación impositiva, supra [in Spanish].

    Ley № 19.549, Procedimientos administrativos (Administrative Procedures), B.O., Apr. 27, 1972 (as amended by Law № 21.686, B.O., Nov. 25, 1977), id. [in Spanish].

    Ley № 22.610, Tasa de actuación ante el tribunal fiscal de la nación (Proceedings in the National Taxation Court), B.O., June 24, 1982 (as amended by Ley № 23.871, B.O., Oct. 31, 1990), id. [in Spanish].

    Ley № 23.548, Régimen transitorio de distribución de recursos fiscales (Transitional System Governing the Distribution of Fiscal Resources), B.O., Jan. 26, 1988, id. [in Spanish].

    Ley № 23.614, Promoción industrial (Industrial Promotion), B.O., Oct. 17, 1988 (as amended by Ley № 1174/89, B.O., Sept. 26, 1989), id. [in Spanish].

    Ley № 23.658, Bono de crédito fiscal para promoción industrial (Tax Credit Vouchers for Industrial Promotion), B.O., Jan. 10, 1989, id. [in Spanish].

    IT—Ley № 20.628, Impuesto a las ganancias (Income Tax), B.O., Sept. 1, 1986 (as amended to Dec. 1996), id., reprinted in IBFD-CIAT [in Spanish]; and in TLW (as amended to Mar. 27, 1996) [in English].

    Ley № 23.905, Impuesto sobre los activos (Tax on Assets), B.O., Dec. 18, 1990 (as amended by Ley № 23.905, B.O., Feb. 18, 1991), reprinted in Legislación impositiva, supra [in Spanish]; also reprinted in TLW (as amended to Jan. 1, 1996) [in English].

    Ley № 23.427, Fondo para educación y promoción cooperativa (Fund for Education and Cooperative Activities), B.O., Dec. 3, 1986 (as amended by Ley № 23.760, B.O., Dec. 18, 1989), reprinted in Legislación impositiva, supra [in Spanish].

    Ley № 20.630, Impuesto de emergencia a los premios de determinados juegos de sorteos y concursos deportivos (Emergency Tax on Specified Lotteries and Sporting Competitions), B.O., Jan. 22, 1974 (as amended by Ley № 23.497, B.O., Feb. 19, 1987), id. [in Spanish].

    Ley № 21.280, Impuesto sobre las transferencias de títulos valores (Tax on Security Transfers), B.O., July 28, 1986 (as amended by Ley № 23.469, B.O., Dec. 5, 1986), id. [in Spanish].

    Ley № 18.526, Impuesto sobre las ventas, compras, cambios o permutas de divisas (Tax on the Sale, Purchase, Exchange or Transfer of Foreign Exchange), B.O., Jan. 13, 1978 (as amended by Ley № 23.905, B.O., Feb. 8, 1991), id. [in Spanish].

    Ley № 23.760, Gravamen sobre servicios financieros (Levy on Financial Services), B.O., Dec. 18, 1989, id. [in Spanish].

    Ley № 23.658, Impuesto sobre intereses y ajustes en depósitos a plazo fijo (Tax on Interest and Adjustments Relating to Fixed-Term Deposits), B.O., Jan. 10, 1989 (as amended to Dec. 31, 1991), id. [in Spanish].

    Ley № 23.760, Impuesto sobre los débitos bancarios en cuenta corriente y otras operatorias (Tax on Current Account Deposits, Debts and Other Bank Operations), B.O., Dec. 18, 1989 (as amended by Ley № 23.905, B.O., Feb. 18, 1991), id. [in Spanish].

    Ley № 18.524, Impuesto de sellos (Stamp Tax), B.O., Sept. 3, 1986 (as amended by Ley № 23.905, B.O., Feb. 18, 1991), id. [in Spanish].

    Ley № 23.898, Tasas judiciales (Court Fees), B.O., Oct. 20, 1990, id. [in Spanish].

    Decreto 1547/78, Tasas de constitución e inspección de sociedades por acciones (Fees on the Incorporation and Inspection of Joint Stock Companies), id. [in Spanish].

    Ley № 23.349, Impuesto al valor agregado (Value Added Tax), B.O., Aug. 25, 1986 (as amended to Dec. 1996), id. [in Spanish], reprinted in IBFD-CIAT [in Spanish].

    Ley № 3.764, Impuestos internos (Internal Taxes), B.O., Oct. 30, 1979 (as amended by Ley № 23.871 B.O., Oct. 31, 1990), reprinted in Legislación impositiva, supra [in Spanish].

    Ley № 19.408, Fondo nacional de autopistas (National Highway Fund), B.O., Jan. 3, 1972 (as amended by Ley № 22.408, B.O., Feb. 26, 1981), id. [in Spanish].

    Ley № 14-574, Impuesto a los pasajes aéreos al exterior (Tax on Overseas Air Trips), B.O., July 14, 1988, id. [in Spanish].

    Ley № 23.905, Impuesto a la transferencia de inmuebles de personas físicas y sucesiones indivisas (Tax on Real Estate Transfers by Natural Persons and Estates), B.O., Feb. 18, 1991, id. [in Spanish].

    Decreto 2.733, Impuesto sobre los combustibles líquidos y otros derivados de hidrocarburos y gas natural (Tax on Liquid Fuels, Other Hydrocarbon Products and Natural Gas), B.O., Jan. 7, 1991, id. [in Spanish].

    Ley № 23.562, Fondo transitorio para financiar desequilibrios fiscales provinciales (Transitional Fund for Financing Fiscal Imbalances in the Provinces), B.O., June 1, 1988 (as amended by Ley № 23.763, B.O., Jan. 4, 1990), id. [in Spanish].

    Ley № 23.966, Impuesto sobre los bienes personales no incorporados al proceso económico (Tax on Personal Goods not Incorporated into an Economic Process), Título VI, reprinted in Separatas Errepar (Errepar S.A., Av. San Juan 960, 1147 Buenos Aires) [in Spanish], amended by Law № 24-468, Mar. 23, 1995, reprinted in TLW [in English].

    Armenia (ARM)

    Law on Taxes (entered into force May 31, 1997).

    Law of the Republic of Armenia on Income Tax, Feb. 8, 1995 [in English].

    Law Regarding the Introduction of Changes and Amendments to the Republic of Armenia Law on the Income Tax, June 14, 1994 [in Armenian].

    Law on the Granting of Tax Exemptions for Specific Economic Activities that Are Taxed on the Basis of Documented Payments of the Income and Profit Taxes as well as Documented Payments of the Income Tax, June 14, 1994 [in Armenian].

    Law on Exempting Tax Paying Legal and Physical Persons (Entities) in the Republic of Armenia from Paying Taxes Assigned to Other Payers, Fines and Payments to Out-of-Budget State Funds, as well as Fines, Penalties and Other Obligations for Transgressions Against Tax Laws, Apr. 26, 1994 [in Armenian].

    Excise Law of the Republic of Armenia, June 6, 1992, NTIS [in English].

    Law of the Republic of Armenia on Amendments and Additions to Excise Tax of the Republic of Armenia, Mar. 18, 1993 [in English].

    Law of the Republic of Armenia on Amendments in the Law of the Republic of Armenia on Excise Tax, Nov. 30, 1994 [in English].

    Law of the Republic of Armenia on Land Tax, Apr. 27, 1994 [in English].

    Profit Tax Law, Dec. 19, 1994 [in English].

    Law of the Republic of Armenia on Foreign Investment, July 31, 1994.

    Law of the Republic of Armenia on the Amendments to the Law of the Republic of Armenia on Profit Tax, June 14, 1994 [in Russian].

    Law of the Republic of Armenia on Property Tax, Feb. 3, 1995 [in English].

    Republic of Armenia Law on Value-Added Tax, June 16, 1997 [in English].

    Australia (AUS)

    At the federal level, Australia imposes the income tax and related taxes and the sales tax. For the income tax legislation, we have cited to an annual multivolume paperback set published by CCH. Australia is in the process of income tax law simplification, involving piecemeal replacement of the 1936 Act, so we cite both this law (which remains in force in part) and the 1997 Act that has replaced it in part.

    ITAA (1936)—Income Tax Assessment Act 1936, reprinted in 1A and 1B 1996 Australian Income Tax Legislation (as amended to Jan. 1, 1996) (CCH Australia Limited 1996).

    ITAA (1997)—Income Tax Assessment Act, id.

    Income Tax Act 1986, reprinted in 2, 1996 Australian Income Tax Legislation (as amended to Jan. 1, 1996) (CCH Australia Limited 1996).

    FBT AA—Fringe Benefits Tax Assessment Act 1986, id.

    Fringe Benefits Tax Act 1986, id.

    Fringe Benefits Tax (Application to the Commonwealth) Act 1986, id.

    Income Tax (Bearer Debentures) Act 1971, id.

    Income Tax (Deferred Interest Securities) (Tax File Number Withholding Tax) Act 1991, id.

    Income Tax (Deficit Deferral) Act 1994, id.

    Income Tax (Diverted Income) Act 1981, id.

    Income Tax (Dividends, Interest and Royalties Withholding Tax) Act 1974, id.

    Income Tax (former Complying Superannuation Funds) Act 1994, id.

    Income Tax (former Nonresident Superannuation Funds) Act 1994, id.

    Income Tax (Franking Deficit) Act 1987, id.

    Income Tax (Fund Contributions) Act 1989, id.

    Income Tax (Mining Withholding Tax) Act 1979, id.

    Income Tax (Offshore Banking Units) (Withholding Tax Recoupment) Act 1988, id.

    ITRA—Income Tax Rates Act 1986, id.

    Income Tax (Securities and Agreements) (Withholding Tax Recoupment) Act 1986, id.

    Income Tax (Withholding Tax Recoupment) Act 1971, id.

    Infrastructure Certificate Cancellation Tax Act 1994, id.

    Medicare Levy Act 1986, id.

    Taxation (Interest on Nonresident Trust Distributions) Act 1990, id.

    Taxation (Unpaid Company Tax—Promoters) Act 1982, id.

    Taxation (Unpaid Company Tax—Vendors) Act 1982, id.

    Trust Recoupment Tax Act 1985, id.

    Taxation Administration Act 1953, id.

    Administrative Decisions (Judicial Review) Act 1977, id.

    Insurance and Superannuation Commissioner Act 1987, reprinted in 3 Australian Income Tax Legislation (as amended to Jan. 1, 1996) (CCH Australia Limited 1996).

    Small Superannuation Accounts Act 1995, id.

    Superannuation Entities (Taxation) Act 1987 (formerly Occupational Superannuation Standards Act 1987), id.

    Superannuation (Financial Assistance Funding) Levy Act 1993, id.

    Superannuation Guarantee (Administration) Act 1992, id.

    Superannuation Guarantee Charge Act 1992, id.

    Superannuation Industry (Supervision) Act 1993, id.

    Superannuation (Resolution of Complaints) Act 1993, id.

    Superannuation Supervisory Levy Act 1991, id.

    Crimes (Taxation Offences) Act 1980, id.

    Taxation (Interest on Overpayments and Early Payments) Act 1983, id.

    Taxation (Interest on Underpayments) Act 1986, id.

    Taxation (Unpaid Company Tax) Assessment Act 1982, id.

    Trust Recoupment Tax Assessment Act 1985, id.

    The sales tax legislation is available on the website of the Australian Legal Information Institute (www.austlii.edu.au) and includes the following laws: Sales Tax Assessment Act 1992, № 114 of 1992; Sales Tax Imposition (Excise) Act 1992, № 115 of 1992; Sales Tax Imposition (Customs) Act 1992, № 116 of 1992; Sales Tax Imposition (General) Act 1992, № 117 of 1992; Sales Tax Amendment (Transitional) Act 1992, № 118 of 1992; Sales Tax (Exemptions and Classifications) Act 1992, № 119 of 1992; Sales Tax (Exemptions and Classifications) Amendment Act 1992, № 131 of 1992; Sales Tax Imposition (In Situ Pools) Act, № 148 of 1992; Sales Tax Laws Amendment Act (№ 2) 1992, № 150 of 1992; Sales Tax Assessment Amendment (Deficit Reduction) Act 1993, № 44 of 1993; Sales Tax (World Trade Organization Amendments) Act 1994, № 155 of 1994; Sales Tax (Low-Alcohol Wine) Amendment Act 1994, № 95 of 1994; Sales Tax Laws Amendment Act (№ 1) 1996, № 68 of 1996.

    Austria (AUT)

    We cite to an annual paperback compilation of tax legislation, published by Linde Verlag (Vienna). The official gazette cites are to the Bundesgesetzblatt (BGBl.). The structure of the Austrian tax laws closely resembles that of Germany, but substantial differences have developed in the details over the years.

    EStG—Einkommensteuergesetz 1988 (Income Tax Law), BGBl. 1988/400, reprinted in Kodex des Österreichischen Rechts: Steuergesetze (Christoph Ritz ed., 20th ed., Linde Verlag, Wien, 1995) (as amended to Nov. 1, 1995) [in German].

    Familienbesteuerungsgesetz 1992 (Household Taxation Law), id.

    Endbesteuerungsgesetz (Law on a Withholding Tax on Income from Capital), BGBl. 1993, id.

    Bundesgesetz über steuerliche Sondermaßnahmen zur Förderung des Wohnbaus (Special Tax Measures for the Promotion of Apartment Construction), id.

    KStG—Körperschaftsteuergesetz 1988 (Corporation Tax Law), BGBl. 1988/401, id.

    Umgründungssteuergesetz (Reorganization tax law), BGBl. 1991/699, id.

    Bundesgesetz vom 7. Juli 1954 über die Umwandlung von Handelsgesellschaften (Federal Law Governing Changes to Commercial Companies), id.

    Bundesgesetz über die Besteuerung der Umsätze (Umsatzsteuergesetz 1994) (Turnover Tax Law) (as of Jan. 1, 1995, UStG 1994, BGBl. 663), id.

    Umsatzsteuergesetz 1972 (Turnover Tax Law), BGBl. 1972/223, id.

    Bundesgesetz über die Einführung des UStG 1972 (Federal Law on the Introduction of the Turnover Tax Law 1972), id.

    Mietrechtsgesetz (Law on Leases), BGBl. 1981/520, id.

    Bewertungsgesetz 1955 (Valuation Law), id.

    Bewertungsgesetznovelle 1972, über die Erhöhung der Einheitswerte ab 1.1. 1997 und 1.1. 1980 (Amendment to the Valuation Law) BGBl. 1972/447, id.

    Bodenschätzungsgesetz 1970 (Law governing Mineral Resources), id.

    Grundsteuergesetz 1955 (Real Estate Tax Law) BGBl. 1955/149, id.

    Abgabe von land-und forstwirtschaftlichen Betrieben (Levy on Land and Forest Management Businesses), id.

    Bodenwertabgabegesetz 1960 (Underdeveloped Real Estate Tax Law), id.

    Gebührengesetz 1957 (Fees Law), id.

    Gebührengesetznovelle 1976, (Fees Law Amendments), id.

    Stempelmarkengesetz, BGBl. 1964/24, (Stamp Duty), id.

    Erbschafts-und Schenkungssteuergesetz 1955 (Inheritance and Gift Taxes Law), id.

    Grunderwerbsteuergesetz 1987 (Tax Law Concerning the Transfer of Real Estate), id.

    Kapitalverkehrsteuergesetz (Tax Law Concerning Capital Transfers), id.

    Versicherungssteuergesetz 1953 (Tax Law on Insurance), id.

    Pensionskassengesetz (Law on Pension Funds), id.

    Feuerschutzsteuergesetz 1952 (Law Governing Fire Insurance Coverage), id.

    Straßenverkehrsbeitragsgesetz 1978 (Road Traffic Tax Law), id.

    Kraftfahrzeugsteuergesetz 1952 (Law on Motor Vehicle Taxation), id.

    Kraftfahrzeugsteuergesetz 1992 (Law on Motor Vehicle Taxation), id.

    Straßenbenützungsabgabegesetz (Law on Road Use Fee), id.

    Abgabe von Zuwendungen (Tax Contributions), id.

    Bundesgesetz mit dem eine Sonderabgabe von Banken erhoben wird (Federal Law by Which a Special Duty Is Levied on Banks), id.

    Bundesgesetz, mit dem eine Sonderabgabe von Erdöl erhoben wird (Federal Law by Which a Special Levy Is Charged on Petroleum), id.

    Investmentfondsgesetz (Investment Funds Law), id.

    Altlastensanierungsgesetz (Law on Soil Decontamination—Rehabilitation of Contaminated Soil Law), id.

    Normverbrauchsabgabegesetz (Tax on Motor Vehicles), id.

    Konsulargebührengesetz 1992 (Consular Fees Law), id.

    BGBl. 1992/824 (Sicherheitsbeitrag) (Airport Security Contribution), id.

    Kommunalsteuergesetz 1993 (Law on Local Taxes) BGB1. 1993/819.

    Karenzurlaubszuschußgesetz (Repayment of Certain Benefits for Children), id.

    Familienlastenausgleichsgesetz 1967 (Law Governing Government Allowances Payable to Families), id.

    Bundesabgabenordnung (Federal Fiscal Code), BGB1. 1961/194, id.

    Abgabenverwaltungsorganisationsgesetz (Tax Administration Organization Law), id.

    Zustellgesetz (Law on Delivery of Official Documents), id.

    Auskunftspflichtgesetz (Information Disclosure Law), id.

    Finanzstrafgesetz 1958 (Law Governing Criminal Acts in Financial Activities), id.

    Kreditwesengesetz 1993, § 38 (2) (Banking Law) (excerpt on bank secrecy), id.

    Azerbaijan (AZE)

    Law of the Republic of Azerbaijan on the Taxation of Income of Natural Persons in the Republic of Azerbaijan, June 24, 1992, reprinted in Bulletin of a Businessman (Baku) (as amended to Dec. 24, 1996) [in English].

    PT—Law of the Republic of Azerbaijan on Profit Tax for Enterprises and Organizations, № 221-1G, Dec. 24, 1996, reprinted in Bulletin of a Businessman (Baku) [in English].

    Law of the Republic of Azerbaijan on Value Added Tax, reprinted in Bulletin of a Businessman (Baku) (as amended to Dec. 24, 1996) [in English].

    Law of the Republic of Azerbaijan on Excises, № 43, Dec. 31, 1991, reprinted in Bulletin of a Businessman (Baku) (as amended to June 24, 1996) [in English] (list of excisable goods and rates have been modified several times by decrees of the national assembly and of the cabinet of ministers).

    Zakon Azerbaydzhanskoy Respubliki o zemel’nom naloge (Law of the Republic of Azerbaijan on Land Tax), № 490, Feb. 2, 1993 [in Russian].

    Law № 222, on the State Revenue Service, July 21, 1992 [in English].

    Law № 992 on Property Tax, reprinted in Bulletin of a Businessman (Baku) (as amended to Dec. 24, 1996) [in English].

    Law № 995, on Mining Tax, Mar. 24, 1995 [in English].

    Law on the State Road Fund, Feb. 16, 1994, Vedomosti Azerbaijan, 1994, № 5-6, item 49.

    Law № 997 on State Duty, Apr. 24, 1995 [in Azerbaijani].

    Bahamas, The (BHS)

    We have cited to the official codification of all the laws of The Bahamas, a nine-volume text. This does not contain enactments after 1987. There is no income tax, sales tax, or inheritance and gift tax. Copies of Acts of The Bahamas may be obtained from Government Publications, P.O. Box N-7147, Nassau, The Bahamas. Amending acts and other laws passed subsequently to this codification are listed in The Commonwealth of The Bahamas: Consolidated Index of Statutes and Subsidiary Legislation (1996).

    Fiscal Reform and Tax Relief Act 1990, № 16 of 1990.

    Registrar General Act, Cap. 174, reprinted in The Statute Law of The Bahamas (rev. ed. 1987).

    Passports Act, Cap. 180, id.

    Real Property Tax Act, Cap. 339, id.

    Business Licenses Act, Cap. 302, id.

    Passenger Tax Act, Cap. 343, id.

    Casino Taxation Act, Cap. 335, id.

    Stamp Tax Act, Cap. 334, id.

    Harbour Dues Act, Cap. 251, id.

    Bahrain (BHR)

    The following citations are from William Ballantyne, Register of Laws of the Arabian Gulf (loose-leaf).

    Petrol Tax Law of 1968, Notice 10/68.

    Decree Law 22/79 on Income Tax.

    Decree Law 12/93 on Zakat Fund.

    Ministerial Resolution 4/94 on Hotel Service Charges (imposes a tax on hotel prices).

    Bangladesh (BGD)

    In addition to those listed below, the following taxes are imposed in Bangladesh: stamp duties, entertainment tax, motor vehicle tax, irrigation tax, tax on transfer of immovable property, wealth tax (Wealth Tax Act, XV of 1963), gift tax (Gift Tax Act, 1963), land development tax, VAT (Value Added Tax Ordinance, 1991), excise duty (Excise and Salt Tax Act, 1944, as amended by VAT), foreign travel tax, advertisement tax, insurance premium tax, and electric duty (Electric Duty Act, 1935).

    The Income Tax Ordinance 1984, Bangladesh Gazette, Extraordinary, June 4, 1984, reprinted in National Board of Revenue, Income Tax Manual, Part I (Bangladesh Government Press). (This has subsequently been amended by annual finance acts.)

    Act № 12 of 1995, Finance Act 1995 (Dhaka, Government Printer).

    Barbados (BRB)

    A consolidated index of statutes and subsidiary legislation (as of Jan. 1, 1997) has been published by the Faculty of Law Library, University of the West Indies, Barbados. This lists the amending laws, and so they will not be listed here. The tax laws listed are as follows:

    Banks (Tax on Assets) Act 1983 (Cap. 59B).

    Betting and Gaming Duties Act 1977 (Cap. 60).

    Betting and Gaming Duties (Validation) Act 1992.

    Consumption Tax (Validation) Act, 1995, № 11 of 1995.

    Duties, Taxes, and Other Payments (Exemption) Act 1981 (Cap. 67B).

    Environmental Levy Act 1996, № 8 of 1996.

    Excise Tax Act 1996, № 29 of 1996.

    Fiscal Incentives Act 1974 (Cap. 71A).

    Fiscal Incentives (Validation of Benefits) Act (Cap. 71AA).

    Income Tax Act (Cap. 73), reprinted in TLW (as amended to 1992).

    Income Tax (Federal Endowments) Act 1960 (Cap. 151).

    Land Development Duty Act (Cap. 78).

    Land Tax Act 1973 (Cap. 78A).

    Land Tax Validation Act 1980 (Cap. 78B).

    Retail Sales Tax Act 1974 (Cap. 86).

    Road Traffic (Road Tax, Reg. Fee and Permits) (Validation) Act 1992.

    Service Tax Act 1980 (Cap. 90).

    Stamp Duty Act (Cap. 91).

    Tax on Remittances Act 1983 (Cap. 91A).

    Technical Assistance (Taxation Relief) Act (Cap. 92).

    Travel Ticket Tax Act 1984 (Cap. 92B).

    Treasury Bills and Tax Certificates Act 1987 (Cap. 106).

    Value Added Tax Act 1996, № 15 of 1996.

    Belarus (BLR)

    In the former Soviet Union, newspapers are an important source, so some of the cites are to newspapers. The cites to Vedomosti Verkhovnogo Sovyeta Respubliki Belarus are to the official session laws. There is also a worldwide website, http://belarus.net.softinfo (cited as website).

    Zakon Respubliki Belarus o Nalogakh na Dokhody i Pribyl Predpriyatiy, Obedineniy, Organizatsiy (Law on Taxing the Income and Profits of Enterprises, Associations, and Organizations), Vedomosti Verkhovnogo Soveta Respubliki Belarus, 1992, № 4, Article 77 [in Belarussian], reprinted in Sovetskaya Belorussiya, Jan. 24, 1992 [in Russian] and same law dated Feb. 1993 [in Russian], translated in FBIS-USR-92-049, Apr. 28, 1992 [in English] (also on website).

    Zakon Respubliki Belarus o Vnesenii Izmeneniy i Dopolneniy v Zakon Respubliki Belarus O Nalogakh na Dokhody i Pribyl Predpriyatiy, Obedineniy, Organiztsiy (Amendment to the Law on Taxing the Income and Profits of Enterprises, Associations, and Organizations), Apr. 19, 1996, Vedomosti Verkhovnogo Soveta Respubliki Belarus № 12 (194), Apr. 1996 [in Russian].

    Law № 780-XIII, Zakon Respubliki Belarus o Vnesenii Izmeneniya v Zakon Respubliki Belarus O Nalogakh na Dokhody i Pribyl Predpriyatiy, Obedineniy, Organiztsiy (Amendent to the Law on Taxing the Income and Profits of Enterprises, Associations, and Organizations), Nov. 13, 1996, Vedomosti Verkhovnogo Soveta Respubliki Belarus № 35 (217), Dec. 15, 1996 [in Russian].

    Zakon Respubliki Belarus’ o Podojodnom Naloge s Grazhdan (Law on Payment of Income Tax by Citizens), Vedomosti Verkhovnogo Soveta Respubliki Belarus, Feb. 15, 1992, № 5, Art. 79 [in Russian], reprinted in Sovetskaya Belorussiya, Jan. 23, 1992 [in Russian], translated in FBIS-USR-92-049, Apr. 28, 1992 [in English] (also on website).

    Zakon Respubliki Belarus o Naloge na Dobavlennuyu Stoimost (Law on the Value Added Tax), Vedomosti Verkhovnogo Soveta Respubliki Belarus, 1992, № 3, Art. 51. Law on Changes in Taxation, reprinted in Sovetskaya Belorussiya, Apr. 2, 1992, at 3 [in Russian], translated in FBIS-USR-92-054, May 5, 1992, at 55-57 (also on website); Zakon Respubliki Belarus o Vnesenii Dopolneniya v Zakon Respubliki Belarus o Naloge na Dobavlennuyu Stoimost (Amendment to the Law on Value Added Tax), May 16, 1996, Vedomosti Verkhovnogo Soveta Respubliki Belarus № 16 (198), June 5, 1996 [in Russian].

    Law Concerning Taxes and Duties in the Republic of Belarus, Jan. 1, 1992 (on website) [in English].

    Zakon Respubliki Byelarus o Vnesenii Dopolneniya v Zakon Respubliki Byelarus o Nalogakh i Sborakh, Vzimaemykh v Byudzhet Respubliki Byelarus (Amendment to the Law on Taxes and Duties in the Republic of Belarus), June 20, 1996, Vedomosti Verkhovnogo Soveta Respubliki Belarus № 23 (205), Aug. 15, 1996 [in Russian].

    Law Concerning Excise Taxes, Jan. 1, 1992 (on website) [in English].

    Law Concerning the Tax on Exports and Imports, Jan. 1, 1992 [in Belarussian, English].

    Law on Taxation of the Use of Natural Resources (ecology tax), Feb. 1993 (on website) [in English].

    Law on Immovable Property Tax, Dec. 23, 1991 (on website) [in English]; Zakon Respubliki Byelarus o Vnesenii Dopolneniya v Zakon Respubliki Byelarus o Naloge na Nedvizhimost (Amendment to the Law on Immovable Property), June 20, 1996, Vedomosti Verkhovnogo Soveta Respubliki Belarus № 23 (205), Aug. 15, 1996 [in Russian].

    Law on Payments for Land (on website) [in English].

    Law Concerning a Tax on the Use of Automotive Fuel, Jan. 1, 1992 [in English].

    Law Concerning the Transit Tax, July 1, 1992, Vedamastsi Vyarkhownaga Saveta Respubliki Byelarus, Feb. 25, 1992 [in Belarussian, English].

    Law of April 13, 1995 on Dues for Driving Means of Motor Transportation on Motor-Roads of Common Use in the Republic of Belarus (on website) [in English].

    Law on the Introduction of Amendments and Additions to Belarus Law on Taxation, Mar. 17, 1992, Narodnaya Gazeta [in Belarussian].

    Zakon Respubliki Belarus’ o Vnesenii Izmeneniy i Dopolneniy v Zakony Respubliki Belarus’ Po Voprosam Nalogooblozheniya (Law on Amending Certain Tax Laws), May 1, 1995 [in Belarussian].

    Law on the State Duty, Jan. 10, 1992 (on website) [in English].

    Belgium (BEL)

    Maison Larder publishes the laws of Belgium in five large volumes in the French language. Volume 4 is economic and fiscal law (Droit économique et fiscal) and contains all the tax laws. These are organized into several codes, but there are also laws and royal decrees, too numerous to list here, that are not codified but are included in the above-referenced volume. We list below the major tax laws (other than local taxes) contained in this volume as of the 1995 edition:

    Arrêté royal portant coordination des dispositions générales relatives aux douanes et accises (Royal Decree on the Coordination of General Provisions Relating to Customs Duties and Excise Taxes), July 18, 1977 (the general customs law; also has some provisions relevant to excise).

    Arrêté royal relatif au régime général, à la détention, à la circulation et aux contrôles des produits soumis à accise (general rules for excise; we omit the laws and decrees containing the rules for specific excises, for which see Maison Larcier supra), Dec. 29, 1992.

    Arrêté royal № 64, contenant le code des droits d’enregistrement, d’hypotèque et de greffe (Code of Registration Duties, Mortgage Duty, and Court Fees) (this is the general law; again, we omit several specific laws and decrees that can be found in Maison Larcier supra), Nov. 30, 1939.

    Arrêté royal № 308, établissant le code des droits de succession (Inheritance Duty Code), Mar. 31, 1936.

    Arrêté du Régent contenant le code des droits de timbre (Stamp Duty Code), June 26, 1947.

    Loi ordinaire, visant à achever la structure fédérale de l’état, Livre III, Écotaxes (environmental taxes), July 16, 1993.

    CIR—Arrêté royal portant coordination des dispositions légales relatives aux impôts sur les revenus, July 30, 1992 (Code des impôts sur les revenus 1992) (Income Tax Code of 1992) (we omit a number of laws and decrees relating to income tax that have not been codified, for which see Maison Larcier, supra).

    Arrêté royal portant codification des dispositions légales relatives aux taxes assimilées aux impôts sur les revenus (Code of Taxes Assimilated to the Income Tax) (motor vehicles, gambling, automatic entertainment devices), Nov. 23, 1965.

    Arrêté royal approuvant la coordination des dispositions législatives sur les taxes assimilées au timbre, qui porteront le nom de «Code des taxes assimilées au timbre» (Code of Taxes Assimilated to Stamp Duty), Mar. 2, 1927.

    Loi créant le code de la taxe sur la valeur ajoutée (VAT Code), July 3, 1969 (we omit a number of decrees relating to VAT that have not been codified, for which see Maison Larcier, supra).

    Arrêté royal coordonnant les dispositions légales concernant les débits de boissons fermentées, Apr. 3, 1953 (Tax on the Sale of Fermented Beverages) (we omit some other laws and decrees relating to this tax, for which see Maison Larcier, supra).

    Belize (BLZ)

    Amending acts for tax laws listed below may be found in Belize: Consolidated Index of Statutes and Subsidiary Legislation (1996).

    Income Tax Act, Cap. 46, reprinted in TLW (as amended to Apr. 1997).

    Gross Receipts Tax Act № 15 of 1994, Official Gazette of July 23, 1994, id.

    Entertainment Tax Act, Cap. 41 (as amended to 1990), available on TaxBase.

    Estate Duty Act, Cap. 42 (as amended to 1990), available on TaxBase.

    Fiscal Incentives Act, Cap. 45, Apr. 17, 1990, available on TaxBase.

    Land Tax Act, Cap. 47 (as amended to 1990), available on TaxBase.

    Stamp Duties Act, Cap. 51 (as amended to 1990), available on TaxBase.

    Towns Property Tax Act, Cap. 52 (as amended to 1990), available on TaxBase.

    Departure Tax Act, Cap. 53A (as amended to 1990), available on TaxBase.

    Act № 16 of 1995, Value Added Tax Act, 1995, Jan. 18, 1996, reprinted in TLW (as amended through May 31, 1997).

    Benin (BEN)

    Code général des impôts (General Tax Code), reprinted in République Populaire du Bénin, Ministère des finances, Code général des impôts (Graphic Ouest Africa 1983) [in French].

    Taxe sur la valeur ajoutée (Value Added Tax), Loi 91-005, Feb. 22, 1991, reprinted in Ce que vous devez savoir sur la taxe sur la valeur ajoutée, Ministère des finances, Mar. 1991.

    Loi № 91-014, portant loi de finances pour la gestion 1991, Apr. 12, 1991.

    Loi № 95-013, portant loi de finances rectificative pour la gestion 1995, Sept. 26, 1995.

    Ordonnance № 96-02, portant loi de finances pour la gestion 1996, Jan. 31, 1996, Journal officiel de la République du Bénin, Feb. 1, 1996.

    Bhutan (BTN)

    According to Revised Taxation Policy 1992, published by the Ministry of Finance, Royal Government of Bhutan, the following taxes were in effect at the time: corporate income tax, business income tax, sales tax, amusement tax, excise duty, contractors tax, salary tax, health contribution, industrial registration and license fees, trade license fees, company registration fees, motor vehicle tax, rural taxes, municipal taxes. The best information we have (which is sketchy) indicates that these taxes are imposed according to royal orders and that tax laws (in the sense of a comprehensive set of written norms imposing the tax) are either nonexistent or unavailable.

    Bolivia (BOL)

    In 1986, the specific tax laws of Bolivia were revised and consolidated into a single law (Law843). In addition to this law, the tax code (Law1340) provides the general rules of procedure. We cite to a compilation published by the tax authority (Dirección general de impuestos internos), as well as to the IBFD CD-ROM.

    Ley № 843, Ley de reforma tributaria (Tax Reform Law), May 20, 1986, reprinted in Recopilación tributaria al 31 de diciembre de 1992 (Dirección general de impuestos internos 1993) (as amended to May 1995) [in Spanish] reprinted in IBFD-CIAT [in Spanish].

    Ley № 1340, Código tributario (Tax Code), May 28, 1992, as amended to Dec. 1994, reprinted in IBFD-CIAT [in Spanish].

    Bosnia and Herzegovina (BIH)

    Law on the Corporate Income Tax, Official Gazette, Feb. 10, 1995 [in English].

    Law on the Tax for Reconstruction of the Republic of Bosnia and Herzegovina [in English].

    Law on the Personal Income Tax, Official Gazette, Feb. 10, 1995 [in English].

    Law on Social Security Contributions, Feb. 3, 1995 [in English].

    Law on the Sales Tax on Products and Services, Oct. 14, 1995, and Law on the Sales Tax on Products and Services, Official Gazette № 6, Nov. 8, 1995 [in English].

    Porez’ Na Dobit (Law on Profit Taxes), reprinted in Narodni List Hravatske Re-publike Herceg-Bosne, Jan. 1994 № 2 at 55 [in Serbo-Croatian, English].

    Law on Federal Tax Administration (Aug. 27, 1996) [in English].

    Botswana (BWA)

    In addition to the taxes listed below, Botswana imposes a capital transfer tax, mineral royalties, and real estate transfer duty.

    Act № 12, Income Tax Act, 1995, Botswana Government Extraordinary Gazette, Supplement A, July 1, 1995, Government Printer, amended by Act № 11 of 1996, Income Tax (Amendment) Act, 1996.

    Sales Tax Act, 1993, Botswana Government Gazette, Supplement A, Feb. 26, 1993.

    Capital Transfer Tax (Amendment) Act, 1996.

    Brazil (BRA)

    The Brazilian Constitution distinguishes different sorts of laws. The lei complementar requires a special majority and is required to govern certain matters specified in the Constitution. For example, the National Tax Code (which contains the general rules applicable to the specific taxes) is a lei complementar. An ordinary law (lei) is promulgated by the Congress. A decree-law (decreto lei) also has the force of law; it is promulgated by the President. A decree is also promulgated by the President, but it has a rank below that of a law or decree-law and therefore is not included in this bibliography. The exception is the Regulamento do Imposto de Renda. This is a decree that consolidates the laws relating to income tax. As a consolidation, it has the force of law.

    RIR—Regulamento de Imposto sobre a renda (Income Tax Regulations) approved by Decree № 1.041 of Jan. 11, 1994, Diario oficial, Jan. 12, 1994 (as amended by Lei № 8.981 of Jan. 20, 1995) (Decree Consolidating the Various Laws Relating to Income Taxation), reprinted in IBFD-CIAT [in Portuguese] and (as amended to end-1995) in TLW [in English].

    Lei № 8.981 Altera a legislaçao tributaria federal e dá outras providências (Law Amending the Federal Tax Legislation and Other Matters), Jan. 20, 1995, reprinted in IBFD-CIAT [in Portuguese].

    Lei № 5.172 Código tributário nacional (National Tax Code), Oct. 25, 1966, reprinted in Código tributário nacional, Editora Saraiva 21 (1990) [in Portuguese].

    Lei complementar—estabelece normas integrantes do estatuto da microempresa, relativas a isenção do Imposto sobre circulação de mercadorias (ICM) e Imposto sobre Serviços (ISS) (Supplementary Law Regulating the Exemption of Small Enterprises from the Tax on the Circulation of Goods and the Service Tax), Dec. 10, 1984, id.

    Lei № 4.320, Estatui normas gerais de direito financeiro para elaboração e controle dos orçamentos e balanços da união, dos estados, dos municípios e do distrito federal (Law Establishing General Regulations Under Financial Legislation for the Preparation and Inspection of the Budgets and Balance Sheets of the Federal Government, States, Municipalities and the Federal District), Mar. 17, 1964, id.

    Lei № 4.504, dispõe sobre o estatuto da terra e dá outras providências (Law Governing Land Tenure and Other Related Matters), Nov. 30, 1964, id.

    Lei № 4.729, define o crime de sonegação fiscal e dá outras providências (Law Defining the Crime of Tax Evasion and Governing Related Matters), July 14, 1965, id.

    Lei № 5.143, Institui o imposto sobre operações financeiras, regula a respectiva cobrança, dispõe sobre a aplicação das reservas monetárias oriundas da sua receita, e dá outras providências (Law Establishing the Tax on Financial Transactions and Regulating the Collection and Application of Financial Reserves Resulting from the Income Derived Therefrom and Other Related Matters), Oct. 20, 1966, id.

    Lei № 6.099, dispõe sobre o tratamento tributário das operações de arrendamento mercantil, e dá outras providências (Law Governing the Treatment for Taxation Purposes of Commercial Leasing and Other Related Matters), Sept. 12, 1974, id.

    Lei № 6.830, dispõe sobre a cobrança judicial da dívida ativa da fazenda pública e dá outras providências (Law Governing the Court-Ordered Collection of Debts Due for Payment by the Treasury and Other Related Matters), Sept. 22, 1980, id.

    Lei № 7.256, estabelece normas integrantes do estatuto da microempresa, relativas ao tratamento diferenciado, simplificado e favorecido, nos campos administrativo, tributário, previdenciário, trabalhista, creditício e de desenvolvimento empresarial (Law Regulating the Status of Small Enterprises as Regards the Special, Simplified and Favorable Treatment to Be Afforded Them with Respect to Administration, Taxation, Social Security, Labor Legislation, Credit and Enterprise Development), Nov. 27, 1984, id.

    Lei № 7.505, dispõe sobre benefícios fiscais na área do imposto sobre a renda concedidos a operações de caráter cultural ou artístico (Law Governing Income Tax Benefits Applicable to Cultural and Artistic Operations), July 2, 1986, id.

    Lei № 7.680, altera valores das taxas de fiscalização da instalação dos serviços de telecomunicações, constantes do Anexo I à Lei № 5.070, de 7 de julho de 1966 (Law Amending the Rates of Inspection Fees for the Installation of Telecommunication Services Referred to in Law № 5,070 of July 7, 1966, Annex I), Dec. 2, 1988, id.

    Lei № 7.689, institui contribuição social sobre o lucro das pessoas jurídicas, e dá outras providências (Law Establishing a Profits Tax on Juristic Persons (corporations) and Governing Other Related Matters), Dec. 15, 1988, id.

    Lei № 7.700, cria o adicional de tarifa portuária (ATP) e dá outras providências (Law Establishing a Supplementary Levy on Port Charges and Governing Other Related Matters), Dec. 21, 1988, id.

    Lei № 7.711, dispõe sobre formas de melhoria da administração tributária, e dá outras providências (Law Introducing Improvements in Tax Administration and Governing Other Related Matters), Dec. 22, 1988, id.

    Lei № 7.712, dispõe sobre a cobrança do pedágio nas rodovias federais, e dá outras providências (Law Governing the Collection of Federal Highway Tolls, and Other Related Matters), Dec. 22, 1988, id.

    Lei № 7.713, altera a legislação do imposto sobre a renda, e dá outras providências (Law Amending Income Tax Legislation and Governing Other Related Matters), Dec. 22, 1988, id.

    Lei № 7.714, altera a legislação dos incentivos fiscais relacionados com o imposto sobre a renda (Law Amending Legislation on Tax Incentives Relating to Income Tax), Dec. 29, 1988, id.

    Lei № 7.730, institui o cruzado novo, determina congelamento de preços, estabelece regras de desindexação da economia, e dá outras providências (Law Establishing the New Cruzado, Freezing Prices, Establishing Rules for Eliminating Indexation, and Governing Other Related Matters), Jan. 31, 1989, id.

    Lei № 7.751, dispõe sobre a incidência do imposto sobre a renda na fonte sobre rendimentos decorrentes de aplicações financeiras, e dá outras providências (Law Governing the Applicability of Income Tax Withheld on Income Derived from Applications of Funds, and Other Related Matters), Apr. 14, 1989, id.

    Lei № 7.752, dispõe sobre benefícios fiscais na área do imposto de renda e outros tributos, concedidos ao desporto amador (Law Governing Income Tax Benefits, and Other Tax Benefits, Granted to Amateur Sporting), Apr. 14, 1989, id.

    Lei № 7.766, dispõe sobre o ouro, ativo financeiro e sobre seu tratamento tributário (Law Governing Gold and Financial Assets and Their Treatment for Tax Purposes), May 11, 1989, id.

    Lei № 7.772, dispõe sobre a compensação, com imposto sobre a renda da pessoa jurídica, da diferença resultante da correção monetária incidente sobre empréstimos concedidos com recursos da caderneta de poupança, e dá outras providências (Law Governing Compensation—with the Corporate Income Tax—for Differences Resulting from the Monetary Correction Applied to Passbook Loans, and Other Related Matters), June 8, 1989, id.

    Lei № 7.777, expede normas de ajustamento do programa de estabilização econômica de que trata a Lei № 7.730, de 31 de Janeiro de 1989, e dá outras providências (Law Establishing Regulations for the Adjustment of the Economic Stabilization Program Defined in Law № 7.730, and Governing Other Related Matters), June 19, 1989, id.

    Lei № 7.782, dispõe sobre a incidência do imposto sobre a renda na fonte em aplicações de renda fixa, e dá outras providências (Law Governing Income Tax Deducted at Source from Fixed-income Investments, and Other Related Matters), June 27, 1989, id.

    Lei № 7.799, altera a legislação tributária federal e dá outras providências (Law Amending Federal Tax Legislation, and Other Related Matters), July 10, 1989, id.

    Lei № 7.827, regulamenta o art. 159, c, da constituição federal, institui o fundo constitucional de financiamento do norte (FNO), o fundo constitucional e financiamento do nordeste (FNE) e o fundo constitucional de financiamento do centro-oeste (FCO) e dá outras providências (Law regulating Article 159 (c) of the Federal Constitution, establishing FNO (the Constitutional Fund for Financing the North), FNE (the Constitutional Fund for Financing the Northeast), and FCO (the Constitutional Fund for Financing the Center-West), and other related matters), Sept. 27, 1989, id.

    Lei № 9.249, altera a legislação do imposto sobre a renda das pessoas jurídicas, bem como da contribuição social sobre o lucro liquido, e dá outras providências (Law Amending the Legislation on Corporate Income Tax, and Also Social Tax on Net Profits Together with Other Provisions) available on TaxBase [in Portuguese].

    Lei Complementar № 84, da seguridade social—fonte de costeiro—instituição na forma do sect. 4 do art. 195 da Constituição Federal (Supplementary Law on Social Security—Cost Center—in Accordance with Section 4 of Article 195 of the Federal Constitution), Jan. 18, 1996, available on TaxBase.

    Decreto-Lei № 37, dispõe sobre o imposto de importação, reorganiza os serviços aduaneiros e dá outras providências (Decree-Law Governing Import Tax, Reorganizing Customs Services, and Other Related Matters), Nov. 18, 1966, reprinted in Código tributário nacional, supra.

    Decreto-Lei № 57, altera dispositivos sobre lançamento e cobrança do imposto sobre a propriedade territorial rural, institui normas sobre arrecadação da dívida ativa correspondente e dá outras providências (Decree-Law Amending Regulations Governing the Recording and Collection of Rural Property Tax, Establishing Rules for the Collection of Debts Due on Such Property, and Governing Other Related Matters), Nov. 18, 1966, id.

    Decreto-Lei № 195, dispõe sobre a cobrança da contribuição de melhoria (Decree-Law Governing the Collection of Special Assessment Tax), Feb. 24, 1967, id.

    Decreto-Lei № 406, estabelece normas gerais de direito financeiro, aplicáveis aos impostos sobre operações relativas à circulação de mercadorias e sobre serviços de qualquer natureza, e dá outras providências (Decree-Law Establishing General Regulations Under Financial Law Applicable to Taxation on the Circulation of Goods and All Types of Services, and Other Related Matters), Dec. 31, 1968, id.’

    Decreto-Lei № 822, extingue a garantia de instância nos recursos de decisão administrativa físcal, e dá outras providências (Decree-Law Eliminating Guaranteed Hearings in the Case of Appeals Against Tax Administration Decisions, and Governing Other Related Matters), Sept. 5, 1969, id.

    Decreto-Lei № 858, dispõe sobre a cobrança e a correção monetária dos débitos fiscais nos casos de falência e dá outras providências (Decree-Law Governing Collection and Monetary Correction as Applied to Tax Debts in Cases of Insolvency, and Other Related Matters), Sept. 11, 1969, id.

    Decreto-Lei № 1.438, altera o Decreto-Lei № 284, de 28 de fevereiro de 1967, estende a incidência do imposto sobre transportes, e dá outras Providêntias (Decree-Law Amending Decree-Law № 284, (1967), Increasing the Scope of Application of the Transportation Tax, and Governing Other Related Matters), Dec. 26, 1975, id.

    Decreto-Lei № 1.578, dispõe sobre o imposto sobre a exportação, e dá outras providências (Decree-Law Governing Export Tax, and Other Related Matters), Oct. 11, 1977, id.

    Decreto-Lei № 1.705, dispõe quanto à obrigatoriedade de recolhimento antecipado, pelas pessoas físicas, do imposto sobre a renda sobre os rendimentos que especifica (Decree-Law Governing Compulsory Advance Collection by Natural Persons of Income Tax Payable on Specified Items), Oct. 23, 1979, id.

    Decreto-Lei № 1.715, regula a expedição de certidão de quitação de tributos federais e extingue a declaração de devedor remisso (Decree-Law Governing the Issue of Receipts for Federal Taxes and Eliminating the Declaration of “Debtor in Arrears”), Nov. 22, 1979, id.

    Decreto-Lei № 1.755, dispõe sobre a arrecadação e restituição das receitas federais, e dá outras providências (Decree-Law Governing the Collection and Refund of Federal Income and Other Related Matters), Dec. 31, 1979, id.

    Decreto-Lei № 1.780, concede isenção do imposto sobre a renda às empresas de pequeno porte e dispensa obrigações acessórias (Decree-Law Granting Exemption from Income Tax and Related Obligations to Small Enterprises), Apr. 14, 1980, id.

    Decreto-Lei № 1.783, dispõe sobre o imposto sobre operações de crédito, câmbio e seguro, e sobre operações relativas a títulos e valores mobiliários (Decree-Law Governing the Tax on Credit, Exchange, and Insurance Operations and on Securities Operations), Apr. 18, 1980, id.

    Decreto-Lei № 1.793, autoriza o poder executivo a não ajuizar as ações que menciona e dá outras providências (Decree-Law Authorizing the Executive Branch Not to Undertake Legal Proceedings in Specified Cases, and Governing Other Related Matters), June 23, 1980, id.

    Decreto-Lei № 1.804, dispõe sobre tributação simplificada das remessas postais internacionais (Decree-Law Governing Simplified Taxation Procedures in the Case of International Postal Remittances), Sept. 3, 1980, id.

    Decreto-Lei № 1.852, regula a distribuição aos municípios da parcela do imposto sobre transmissão de bens imóveis e de direitos a eles relativos (Decree-Law Governing the Distribution to Municipalities of a Portion of the Tax on the Conveyance of Real Estate and Related Rights), Jan. 27, 1981, id.

    Decreto-Lei № 1.875, dispõe sobre a simplificação de normas gerais de direito financeiro aplicáveis a municípios com população inferior a 50.000 (cinqüenta mil) Habitantes (Decree-Law Governing the Simplification of General Regulations of Financial Law Applicable to Municipalities with Fewer than 50,000 Inhabitants), July 15, 1981, id.

    Decreto-Lei № 1.881, altera a Lei № 5.172, de 25 de outubro de 1966, cria a reserva do fundo de participação dos municípios (FPM), e dá outras providências (Decree-Law amending Law 5.172 of 1966 Establishing the Reserve Fund for the FPM (Municipalities’ Participation Fund), and Governing Other Related Matters), Aug. 27, 1981, id.

    Decreto-Lei № 1.940, Institui contribuição social, cria o fundo de investimento social-FINSOCIAL, e dá outras providências (Decree-Law Establishing the Social Security Tax and FIN SOCIAL (the Social Investment Fund), and Governing Other Related Matters), May 25, 1982, id.

    Decreto-Lei № 2.108, concede isenção dos impostos de importação e sobre produtos industrializados nos casos que especifica (Decree-Law Granting Exemption from Taxes on Imports and Processed Products in Specified Cases), Feb. 27, 1984, id.

    Decreto-Lei № 2.120, dispõe sobre o tratamento tributário relativo a bagagem (Decree-Law Governing Tax Treatment of Baggage), May 14, 1984, id.

    Decreto-Lei № 2.186, institui o imposto sobre serviços de comunicações, e dá outras providências (Decree-Law Establishing the Tax on Communications Services, and Governing Other Related Matters), Dec. 20, 1984, id.

    Decreto-Lei № 2.227, dispõe sobre processo de consulta e dá outras providências (Decree-Law Governing The Consultation Process, and Other Related Matters), Jan. 16, 1985, id.

    Decreto-Lei № 2.446, dispõe sobre o pagamento dos tributos relativos ao ingresso de bens de procedência estrangeira, nas condições que menciona, e dá outras providências (Decree-Law Governing the Payment of Taxes on the Entry of Goods from Abroad Under Specified Conditions, and Other Related Matters), June 30, 1988, id.

    Decreto-Lei № 2.450, altera a legislação do imposto sobre produtos industrialiados (Decree-Law Amending Legislation Governing the Tax on Processed Goods), July 29, 1988, id.

    Decreto-Lei № 2.452, dispõe sobre o regime tributário, cambial e administrativo das zonas de processamento de exportação (ZPE) e dá outras providências (Decree-Law Governing the Taxation, Exchange and Administrative Regimes to be Applied in Export Processing Zones, and Other Related Matters), July 29, 1988, id.

    Decreto-Lei № 2.472, Altera disposições da legislação aduaneira, consubstanciada no Decreto-Lei № 37, de 18 de novembro de 1966, e dá outras providências (Decree-Law Amending the Customs Legislation Contained in Decree-Law № 37 of 1966, and Governing Other Related Matters), Sept. 1, 1988, id.

    Decreto-Lei № 2.479, dispõe sobre a redução de impostos de importação de bens, e dá outras providências (Decree-Law Governing the Reduction of Taxes on the Importation of Goods, and Other Related Matters), Oct. 3, 1988, id.

    Value-Added Tax (Tax on Industrialized Products) excerpts from The New Regulation, approved by Decree 87.981, Dec. 23, 1982, reprinted in TLW [in English].

    Brunei Darussalam (BRN)

    Income Tax Act, Laws of Brunei, Cap. 35 (rev. ed. 1984), reprinted in TLW (as amended to Sept. 19, 1987).

    Stamp Act, Laws of Brunei, Cap. 34 (rev. ed. 1984).

    Excise Act, Laws of Brunei, Cap. 37 (rev. ed. 1984).

    Investment Incentives Act, Laws of Brunei, Cap. 97 (rev. ed. 1984).

    Income Tax (Petroleum) Act, Laws of Brunei, Cap. 119 (rev. ed. 1984).

    Bulgaria (BGR)

    We have cited to a multivolume compilation of the tax laws by Trud I Pravo (in Bulgarian). In addition, Collection of Bulgarian Laws [hereinafter Collection], published by Legis Bulgarian News, Sofia (fax: 3592-9433058) is an annual publication of English translations of selected Bulgarian laws and regulations. In addition to taxes cited below, a tax on buildings and an inheritance tax are imposed, and companies with more than 50 percent state ownership must pay an irrigation contribution and a tax on excess wage increases.

    Zakon za Danak vorkhu Obshtya Dokhod (Law on Income Tax), reprinted in Danachno Oblagane za 1994 Godina 120 (IK Trud i Pravo 1995) (as amended to Dec. 31, 1994) [in Bulgarian].

    Profit Tax Law, Official Gazette № 59 (July 12, 1996), reprinted in 1997 Collection, supra.

    Zakon za Danak varkhu Dobavenata Stoynost (Law on Value Added Tax), Official Gazette, № 90 of 1993, reprinted in Danachno Oblagane za 1994 Godina 202 (IK Trud i Pravo 1995) [in Bulgarian], and in 1994 Collection, supra [in English]; amendments reprinted in 1997 Collection, supra.

    Zakon za Danachnata Administratsiya (Law on Tax Administration), Official Gazette, № 59 of 1993, reprinted in Danak Varkhu Dobavenata Stoynost 82 (IK Trud i Pravo 1994) [in Bulgarian], reprinted in CEEL [in English] and in 1994 Collection, supra [in English].

    Zakon za Danachnoto Proizvodstvo (Law on Taxable Production), Official Gazette, № 61 of 1993, id. [in English].

    Zakon za Aktsizite (Law on Excise Tax), Official Gazette, № 19 of 1994, reprinted in Aktsizi: Zakon i prilagane 12 (IK Trud i Pravo 1994) [in Bulgarian] and in 1997 Collection, supra.

    Durzhaven Vestnik № 61, (1993), Law on Tax Procedures, July 1, 1993, reprinted in CEEL and in 1994 Collection, supra [in English].

    Regulations on Road Taxes on Motor Vehicles (Govt. decree of Feb. 10, 1992), reprinted in 1993 Collection, supra [in English].

    Burkina Faso (BFA)

    Code des impôts, reprinted in Ministre de l’économie et des finances, Direction générale des impôts, recueil de textes relatifs à la fiscalité interieure (Oct. 1996).

    Code de l’enregistrement, du timbre, et de l’impôt sur les valeurs mobilières, reprinted in id.

    Burundi (BDI)

    Code général des impôts et taxes (General Tax Code), reprinted in Burundi, Ministère des finances, Departement des impôts, (l’INABU 1985) (as amended to Nov. 1, 1985) [in French].

    Décret-Loi № 1/04 portant reforme de la taxe sur les transactions (Decree-Law Governing the Reform of Tax on Transactions), Jan. 31, 1989 [in French].

    Décret-Loi № 1/039 portant modification de la Loi du 17 février 1964 relative à l’impôt réel (Decree-Law of Dec. 31, 1990 amending the Law of Feb. 17, 1964 on Property Tax), Dec. 31, 1990 [in French].

    Décret-Loi № 1/012 portant révision de certains dispositions de la loi du 21 septembre 1963 relative a l’impôt sur les revenus (Law № 1/012 revising provisions in the Law of September 21, 1963 Governing Income Tax), Feb. 23, 1993 [in French].

    Décret-Loi № 1/013 portant revision de certaines dispositions du code général des impôts et taxes (Decree-Law № 1/013 Revising Provisions in the General Tax Code), Feb. 23, 1993 [in French].

    Loi № 1/005 portant fixation du taux de la taxe ad valorem a percevoir sur la cigarette (Law Setting the Rate for the Ad Valorem Tax on Cigarettes), Oct. 14, 1993 [in French].

    Loi № 1/005 portant modification des articles 14 et 15 du Décret-Loi № 1/04 du janvier 31 1989 portant reforme de la taxe sur les transactions (Law Amending Articles 14 and 15 of Decree-Law № 1/04 of Jan. 31, 1989, Reforming Tax on Transactions), Mar. 31, 1994 [in French].

    Loi № 1/006 portant abrogation du Decret-Loi № 1/10 du 3 mai 1978 portant institution d’une taxe touristique (Law Repealing Decree-Law № 1/10 of May 1978 Establishing the Tourist Tax), Mar. 31, 1994 [in French].

    Cambodia (KHM)

    Obviously, the decree listed below is outdated. According to the IBFD supplement on Cambodia dated Apr. 1996 (in Taxes and Investment in Asia and the Pacific), applicable taxes included profits tax, income tax, turnover tax, tax on renting of houses and land, undeveloped land tax, registration tax, stamp duty, and sales tax (imposed on petroleum products, beverages, and cigarettes).

    Royal Decree of Sept. 13, 1954, Tax on Industrial, Commercial, Non-Commercial, Agriculture and Real Estate Profits, reprinted in TLW [in English].

    Cameroon (CMR)

    CGI—Code général des impôts (General Tax Code), reprinted in Code général des impôts remis à jour au 1 juillet 1996 (Alpha Conseil Formation, B.P. 14670 Yaoundé; Tel. 221258) [in French], reprinted in TLW (as amended to Feb. 1988).

    Code de l’enregistrement du timbre et de la curatelle, mis à jour au 1 juillet 1995: Législation harmonisée en UDEAC, et Législation non harmonisée (Registration Stamp Tax and Fee), reprinted in Collection des Codes DIN [in French].

    Canada (CAN)

    For the income tax and goods and services tax (GST), we cite to one of several compilations published by commercial publishers. Note that the GST is part of the Excise Act. The Excise Act has been used to implement a number of federal taxes, including the sales tax. As of 1991, the sales tax portions of the Excise Act have been replaced by the GST provisions. Other parts of the Excise Act remain in effect. Incidentally, it is frightening to note that although the GST has been in effect for only a few years, it is already the subject of a seven-volume hose-leaf service.

    IT A—Income Tax Act, R.S.C. 1985, reprinted in H. Stikeman, Stikeman Income Tax Act, Annotated (23rd ed., Carswell Thomson Professional Publishing 1994) (as amended to July 31, 1994).

    Goods and Services Tax provisions contained in the Excise Tax Act, R.S.C. 1985, reprinted in The Practitioner’s Goods and Services Tax, Annotated (David M. Sherman, ed., 6th ed., Carswell Thomson Professional Publishing 1996) (as amended to June 1, 1996).

    Excise Act, Revised Statutes of Canada 1985; amendments may be found in Canada Statute Citator (Canada Law Book Inc., loose-leaf 1997).

    Cape Verde (CPV)

    Regulamento do imposto profissional (Regulation on Professional Tax), 1963, reprinted in Ministério das Finanças do Planeamento, Regulamentos Tributários 5 (Grafedito 1992) (as amended to 1992) [in Portuguese].

    Regulamento da contribuição industrial (Business Tax Regulation), 1963, id.

    Decree-Law 126/85 of Sept. 25, 1985, Boletim oficial, Nov. 9, 1985 (approves table of consumption tax rates).

    Decree-Law 27/88, Boletim oficial, Apr. 2, 1988 (exemption from customs duties, consumption tax, and general fees for imports financed by IDA project).

    Central African Republic (CAF)

    Code général des impôts directs (General Code on Direct Taxes) (Direction générale des impôts, 1983) [in French].

    Code des impôts de l’enregistrement, sur le revenu des valeurs mobilières et du timbre (Oct. 1, 1970: G.I.R.C.A., Bangui) [in French].

    Ordonnance № 74-013, Jan. 24, 1974, Journal officiel, Mar. 15, 1974 [in French].

    Loi № 88-008, May 19, 1988 [in French].

    Loi № 94.003, Mar. 22, 1994, arrêtant le budget pour l’année 1994 (established turnover tax and excise) [in French].

    Chad (TCD)

    The tax legislation is codified in the Code Général des Impôts. Recent amendments are made by OrdonnanceI/PR/96, portant budget général pour 1997 [in French].

    Chile (CHL)

    We cite to a compilation published by the internal revenue authority (Servicio de Impuestos Internos), as well as to the IBFD CD-ROM.

    Decreto Ley № 830 sobre código tributario (Tax Code) D.O., 31 de diciembre de 1974 y actualizado hasta el 31 de julio de 1994, reprinted in Textos Legales, Servicio de Impuestos Internos, Arrayan ed. (1995) [in Spanish], as amended by Ley № 19.398, Aug. 4, 1995, reprinted in IBFD-CIAT [in Spanish].

    IR—Decreto Ley № 824 de Impuesto a la Renta (Income Tax), D.O., 31 de diciembre de 1974 y actualizado hasta el 4 de febrero de 1995, reprinted in Textos Legales, supra, as amended to Nov. 1996, reprinted in IBFD-CIAT [in Spanish].

    Decreto Ley № 825 sobre impuesto a las ventas y servicios (Law on Sales and Services Tax), D.O. 31 de diciembre de 1987 y actualizado hasta el 31 de diciembre de 1994, reprinted in Textos Legales, supra, as amended by Ley № 19.398 of Aug. 4, 1995, reprinted in IBFD-CIAT [in Spanish] and in TLW (as amended to May 1991) [in English].

    Ley № 16.271, de impuesto a las herencias, asignaciones y donaciones (Inheritance and Gift Tax Law) D.O., 10 de julio de 1965 y actualizado hasta el 31 de diciembre de 1994, reprinted in Textos Legales [in Spanish].

    Decreto Ley № 3.475 de impuesto de timbres y estampillas (Stamp Tax Law) D.O. 4 de septiembre de 1980, reprinted in Información Tributaria (Servicio de Impuestos Internos 1988) (as amended to Aug. 31, 1987) [in Spanish].

    Ley № 17.235 sobre impuesto territorial (Land Tenure Tax) D.O., 24 de diciembre de 1969 y actualizada hasta el 31 de agosto de 1994, id.

    Decreto Ley № 600 de 1974, sobre estatuto de la inversión extranjera (Foreign Investment Law) D.O., 18 de marzo de 1977, reprinted in Información Tributaria (Servicio de Impuestos Internos 1988) (as amended to Aug. 31, 1987) [in Spanish].

    Decreto Ley № 889 de 1975 modifica el régimen aduanero, tributario y de incentivos a la I, II, III, XI y XII Regiones y a la actual provincia de Chile (Regional Tax Provisions), D.O., 21 de febrero de 1975, reprinted in Información Tributaria (Servicio de Impuestos Internos 1988) (as amended to Aug. 31, 1987) [in Spanish].

    Decreto Supremo № 341 de 1977, aprueba el texto refundido y coordinado de los Decretos Leyes Nos¯ 1.055 y 1.233 (1975), 1.611 (1976) y 1.698 (1977) sobre zonas y depósitos francos (Free Zones and Deposits), D.C., 8 de junio de 1977, reprinted in Información Tributaria (Servicio de Impuestos Internos 1988) (as amended to Aug. 31, 1987) [in Spanish].

    Texto del D.F.L. № 2 de 1959 sobre plan habitacional, D.O., 31 de julio de 1959 y actualizado al 31 de agosto de 1994, id.

    China (CHN)

    In addition to those listed below, an urban real property tax and a tax on vehicles and ships are imposed.

    Income Tax Law of the People’s Republic of China for Enterprises with Foreign Investment and Foreign Enterprises, enacted by the National People’s Congress on Apr. 9, 1991, reprinted in National Taxation Bureau—Foreign Taxation Administration Department, a Collection of Tax Laws and Regulations of the People’s Republic of China, at 184 (State Statistics Bureau 1994) [in Chinese, English].

    EIT—Provisional Regulations of the People’s Republic of China on Enterprise Income Tax, enacted by the State Council on Dec. 13, 1993, id.

    Provisional Regulations of the People’s Republic of China on Consumption Tax, enacted by the State Council on Dec. 13, 1993, id.

    Provisional Regulations of the People’s Republic of China on Business Tax, enacted by the State Council on Dec. 13, 1993, id.

    Individual Income Tax Law of the People’s Republic of China, enacted by the Standing Committee, National People’s Congress, Oct. 31, 1993, id.

    Provisional Regulations of the People’s Republic of China on Value-Added Tax, enacted by the State Council, Dec. 13, 1993, id.

    Provisional Regulations of the People’s Republic of China on Resource Tax, enacted by the State Council, Dec. 13, 1993, id.

    Provisional Regulations of the People’s Republic of China on Land Appreciation Tax, enacted by the State Council, Dec. 13, 1993, id.

    Provisional Regulations of the People’s Republic of China Concerning Stamp Tax, enacted by the State Council, Oct. 1, 1988, id.

    Supplementary Provisions [to the Criminal Law] Concerning the Imposition of Punishments in Respect of Offenses of Tax Evasion and Refusal to Pay Tax, enacted by the Standing Committee, National People’s Congress, Sept. 4, 1992, id.

    The Law of the People’s Republic of China Concerning the Administration of Tax Collection, enacted by the Standing Committee, National People’s Congress, Sept. 4, 1992, id. at 236. Amendment of the People’s Republic of China Tax Collection Administration Law based on the Feb. 28, 1995 Decisions Regarding Revision of the People’s Republic of China Tax Collection Administration Law of the Eleventh Meeting of the Eighth National People’s Congress Standing Committee, FBIS Database, FBIS-CHI-95-069 [in English].

    Colombia (COL)

    The tax laws of Colombia have, since 1989, been codified in the Tax Code (Estatuto Tributario). Most provisions of tax laws (e.g., Law49 of 1990, cited below) consist of amendments to the code. However, certain provisions, largely of a transitional nature, do not amend the code and hence someone who needs to know all the tax laws of Colombia must consult these provisions in addition to the code. We cite to a commercial publisher of the Code as well as to the IBFD-CIAT.

    TC—Decreto № 624, Estatuto Tributario (Taxation Statute), Mar. 30, 1989, as amended to Dec. 1995, reprinted in IBFD-CIAT and in Rodrigo Monsalve T., Impuestos 1991 (renta, ventas e indirectos) (Centro Interamericano Junídico-Financiero 1991) (as amended to 1991) [in Spanish] and in TLW (art. 1-364, as of Mar. 30, 1989) [in English].

    Ley № 49 de 1990, reforma tributaria 1990 (Law on Tax Reform), D.O., 31 diciembre de 1990, reprinted in IBFD.

    Comoros (COM)

    Loi № 85-018/AF du 24 décembre 1985, Code générale des impôts (General Tax Code), reprinted in Comoros, Administration générale des impôts, Code general des impôts (1985) [in French].

    Congo, Democratic Republic of the (ZAR)

    (Formerly known as Zaïre.)

    CDC—Code des contributions (General Tax Code) (as amended to June 1989).

    Congo, Republic of (COG)

    CGI—Code générale des impôts (General Tax Code), tome 1 et 2 (ed. 1990), Brazzaville, République populaire du Congo (author not identified but presumably an official publication).

    Amending acts:

    • Loi de finances № 5.92, Mar. 10, 1992.

    • Loi de finances № 14.94 du 17 juin 1994 pour l’année 1994.

    • Loi de finances № 15.94 du 15 juillet 1994 portant modification du budget de l’état pour 1994.

    • Loi de finances portant modification du budget de l’État pour 1995.

    • Loi de finances № 5.96 du 2 mars 1996 pour l’année 1996.

    • Loi de finances № 2.97 du 29 mars 1997 pour l’année 1997.

    Costa Rica (CRI)

    In addition to the taxes listed below, Costa Rica imposes mineral royalties, real estate tax, real estate transfer tax, stamp taxes, and assets tax.

    Decreto № 4755, Código de Normas y Procedimientos Tributarios (Code of Tax Regulations and Procedures), May 3, 1971, as amended to Feb. 1996, reprinted in IBFD-CIAT [in Spanish].

    Ley № 7092, Impuesto sobre la Renta (Income Tax Law), Apr. 21, 1988, as amended by Law № 7551 of Sept. 22, 1995, reprinted in IBFD-CIAT [in Spanish] and in TLW (as amended to Sept. 1991) [in English].

    Ley № 6826, Impuesto General sobre las Ventas (General Sales Tax Act, Act), Nov. 8, 1982, as amended by Law № 7543 of Sept. 14, 1995, reprinted in IBFD-CIAT [in Spanish] and in TLW (as amended to Sept. 1991) [in English].

    Ley № 7535 de Justicia Tributaria, July 31, 1995, reprinted in IBFD-CIAT [in Spanish].

    Ley № 7543, Ajuste Tributario (Tax Adjustment Law), Sept. 12, 1995 available on TaxBase [in Spanish].

    Côte d’lvoire (CIV)

    Code général des impôts 1981 (General Tax Code), reprinted in République de la Côte d’lvoire, Code général des impôts (Impr. Nationale 1981) (as amended to Dec. 31, 1980), also in Codes et Lois Usuelles de Côte d’lvoire (A. Aggrey ed.) (as amended to 1985) [in French].

    Croatia (HRV)

    Zakon o Porezu na Dohodak (Income Tax Law), Narodne Novine № 109, Dec. 7, 1993 [in Serbo-Croatian].

    PT—Zakon o Porezu na Dobit (Profit Tax Law), Narodne Novine № 109, Dec. 7, 1993 [in Serbo-Croatian], translated in Croatian Income Tax & Profit Tax Acts (Institut za Javne Financije, Zagreb, 1994) [in English].

    Income and Profit Tax Amendments, Narodne Novine № 95, Dec. 27, 1994, reprinted in Income Tax Act, Profit Tax Act (Institut za Javne Financije, Zagreb 1995).

    Value Added Tax Act, Narodne Novine, № 47, July 12, 1995 (Institut za Javne Financije, Zagreb 1995) [in Croatian, German, English].

    Cyprus (CYP)

    In addition to those listed below, the Assessment and Collection of Taxes Law of 1978, as amended, applies. VAT applies as of July 1, 1992.

    IT—The Income Tax Laws, 1961-1988 (№ 3), reprinted in TLW (as amended to Dec. 1990) [in English].

    Law № 52 of 1980, Capital Gains Tax, 1980, Printing Office of the Republic of Cyprus [in English].

    Estate Duty Law (as amended to 1985) [in English], id.

    The Immovable Property Tax Law (as amended up to Feb. 26, 1981) [in English], id.

    The Imposition of Tax on Certain Services Law, 1984 [in English], id.

    The Stamp Law (as amended to 1984) [in English], id.

    The Special Contribution (Temporary Provisions) Law, 1974 (as amended to 1984) [in English], id.

    Czech Republic (CZE)

    We cite to the session laws (Sbírka Zákonů) as well as to a commercially prepared translation of up-to-date tax laws published by Trade Links. The latter comes out about once a year and so will not always be completely up to date. Moreover, it does not contain all the laws. Česke zakony, edited by P. Bohata and H. Valkova (Beck: Munich) is a loose-leaf service that will contain an up-to-date compilation in Czech; see also Danove a finančni pravo by the same editors, which focuses on tax and financial laws.

    IT A—№ 586/1992, Zákon o daních z příjmů (Income Taxes Act), reprinted in Czech Taxation in 1997 (Z. Pošustová et al. trans., Trade Links Prague) (as amended to Feb. 1997) [in English].

    № 593/1992, Zákon o rezervách pro zjištění základu daně z příjmů (Act on Reserves for the Purposes of Determining Income Tax Base), id.

    № 588/1992, Zákon o dani z přidané hodnoty (Value Added Tax Act), id.

    № 587/1992, Zákon o spotřebních daních (Excise Duties Act), id.

    № 357/1992, Zákon o dani z převodu nemovitostí (Real Estate Transfer Tax) (excerpts), id.

    № 338/1992, Zákon o dani z nemovitostí (Real Estate Tax Act), id.

    № 337/1992, Zákon o správě daní a poplaktů (Law on the Administration of Taxes and Fees), id.

    № 119/1992, Zákon o cestovních náhradách (Travel Expense Reimbursement Act), id.

    № 16/1993, Zákon o dani silniční (Road Tax Act), id.

    Zákon české národní rady o dani dědickě, dani darovací a dani z převodu nemovitostí (Law on Inheritance Tax, Gift Tax, and Real Estate Transfer Tax) № 357/1992 Coll., Sbírka zákonů, July 7, 1992 [in Czech].

    Zákon № 322 kterým se mění a doplňuje zákon české národní rady № 357/1992 Sb., o dani dědické, dani darovací a dani z převodu nemovitostí, ve znění zákona české národní rady № 18/1993 Sb. (Amendments to Law № 357 on Inheritance Tax, Gift Tax, and Real Estate Transfer Tax), Sbírka zákonů, Dec. 30, 1993 [in Czech].

    № 85/1994 Zákon kterým se doplňuje zákon české národní rady № 357/1992 Sb., o dani dědické, dani darovací a dani z převodu nemovitostí, ve znění zákona české národní rady № 18/1993 Sb., zákona № 322/1993 Sb., zákona № 42/1994 Sb., a zákona № 85/1994 Sb. (Amendments to Law № 357 on Inheritance Tax, Gift Tax, and Real Estate Transfer Tax) (Amendments to Law № 357), Sbfrka zákonů, at 1162, July 8, 1994.

    Denmark (DEN)

    We cite to a commercial compilation (Dankse Skattelove) that comes out annually. In addition to the listed taxes, the following taxes are imposed: church tax, tax on lottery winnings, tax on hunting licenses, excise duty on petrol, excise tax on certain petroleum products, tax on gas, tax on electricity, registration tax on motor vehicles, excise duty on tobacco, excise tax on spirits, excise duty on wine and fruit wine, excise duty on beer, excise duty on mineral waters and the like, excise duty on tea and tea extracts, excise duty on coffee, coffee extracts, and coffee substitute, excise duty on chocolate and sweets, tax on ice cream, tax on incandescent lamps and electric fuses, sundry consumption tax, tax on certain retail packaging, tax on totalizator betting, tax on rents released from Landlord’s Investment Fund, weight tax on motor vehicles, tax on pleasure-craft insurance, levy on banks and savings banks, levy on insurance businesses, fund income tax, legal action tax, tax on coal, lignite, and coke, environmental tax, tax on certain chlorofluorocarbons and halons, tax on waste and certain raw materials, tax on gramophone records and compact discs, tax on casino games, flight transportation tax, tax on football-pool betting and lotto, tax on labor costs, energy tax on mineral oil, excise duty on cigarette paper, chewing tobacco and snuff, carbon dioxide tax on certain energy products, excise duty on water pipelines, taxation of pension schemes, real interest tax on certain pension capitals, etc. References to the respective laws imposing these taxes are found in EU Inventory. The Tax Ministry has published an English summary of the tax system, Direct Taxation in Denmark (Jan. 1995).

    Afskrivningsloven (Act on Fiscal Depreciation) Lovbekendtgørelse nr. 205 af 23. Marts 1990 om skattemæsssige afskrivninger, reprinted in Danske Skattelove 1990/1991 med henvisninger (Peter Taarnhoj ed., A/S Skattekartoteket Informationskontor 1990) (as amended through July 1990) [in Danish].

    Aktieafgiftsloven (The Share Duty Act) Lov nr. 228 af 22. Apr. 1987 om afgift ved overdragelse af aktier m.v., id.

    Aktieavancebeskatningsloven (Act on Taxation of Share Profits) Lovbekendtgørelse nr. 698 af 5. Nov. 1987 om beskatning af fortjeneste ved aftåelse af aktier m.v., id.

    Amtskommuneskatteloven (County Authority Income Tax) Lovbekendtgørelse nr. 534 af 30. Oktober 1974 om udskrivning af skat til amtskommunen, id.

    Arve-og gaveafgiftsloven (Act on Inheritance and Gift Tax) Lovbekendtgørelse nr. 62 af 6. Februar 1987 om afgift af arv og gave [in Danish], id. Also reprinted in TLW (as amended to Nov. 1988) [in English].

    Bunden opsparing (Act on Compulsory Saving) Lov nr. 137 af 6. Apr. 1985 om bunden opsparing, reprinted in Danske Skattelove, supra [in Danish].

    Børnefamilieydelsesloven (Act on Child Benefits) Lovbekendtgørelse nr. 163 af 4. Marts. 1990 om en børnefamilieydelse, id. [in Danish].

    Dobbeltbeskatningsloven (Act on Double Taxation) Lov nr. 74 af 31. Marts. 1953 om indgåelse af overenskomster med fremmede stater til undgåelse af dobbeltbeskatning m.v., id. [in Danish].

    Ejendomsavancebeskatningloven (Act on Taxation of Real Estate Profits) Lovbekendtgørelse nr. 558 af 16. Sept. 1988 om beskatning af fortjeneste ved afståelse af fast ejendom [in Danish], id. Also reprinted in TLW (as amended to Nov. 1988) [in English].

    Ejerlejlighedsbeskatningsloven (Act on Duty on First-Time Transfer of Certain Freehold Flats) Lov nr. 193 af 9. Apr. 1986 om beskatning af fortjeneste ved førstengangsafståelse af visse ejerlejligheder m.v., reprinted in Danske Skattelove, supra.

    Etableringskontoloven (Act on Establishment Accounts) Lovbekendtgørelse nr. 240 af 17. Apr. 1990 om indskud på etableringskonto, id.

    Fondsbeskatningsloven (The Foundation Tax Act) Lovbekendtgørelse nr. 528 af 2. Aug. 1989 om beskatning af fonde, visse foreninger og institutter m.v., id.

    Forhåndsbeskedloven (Act on Advance Notice) Lov nr. 143 af 13. Apr. 1983 om bindende forhåndsbesked om skattespørgsmål m.v., id.

    Forsvarerbistandsloven Lovbekendtgørelse nr. 489, Sept. 19, 1984, om adgang til forsvarerbistand under en administrativ skatte-eller afgiftsstraffesag (Act on Defendant Benefits, Sept. 19, 1984, on access to defendant assistance during a tax or fine administrative proceeding), id.

    Frigørelsesafgiftsloven (Act on Property Release Tax) Lovbekendtgørelse nr. 441 af 26. Sept. 1985 om frigørelsesaftgift m.v. af fast ejendom [in Danish], id.

    Fusionsloven (The Merger Act) Lovbekendtgørelse nr. 527 af 2. Aug. 1989 om beskatning ved fusion af aktieselskaber m.v. [in Danish], id.

    Gensidig bistandslov (Act on Mutual Assistance) Lov nr. 635 af 13. Dec. 978 om gensidig bistand inden for området direkte skatter mellem stater, der er medlem af De europæiske Fælkesskaber [in Danish], id.

    Husdyrbesætningsloven (Act on Livestock) Lovbekendtgørelse nr. 526 af 2. Aug. 1989 om den skattemæssige behandling af husdyrbesætninger, id.

    Inddrivelsesloven (Act on Tax Collection) Lov nr. 278 af 26. Maj 1976 om fremgangsmåden ved inddrivelse af skatter og afgifter m.v., id.

    Indexkontraktloven (Act on Indexed Savings Accounts) Lovbekendtgørelse nr. 16 af 12. Januar 1972 om pristalsreguleret alderdomsforsikring og alderdomsopsparing, id.

    Investeringsfondsloven (Act on Investment Funds) Lovbekendtgørelse nr. 241 af 17. April 1990 om investeringsfonds, id.

    Investeringsforeningsloven (Act on Unit Trust (Mutual Funds)) Lovbekendtgørelse nr. 654 af 8. Oktober 1987 om beskatning af medlemmer af investeringsforeninger, id.

    Kapitaltilførselsaffgiftsloven (Duty on the Raising of Capital Act) Lovbekendtgørelse nr. 761 af 12. Dec. 1988 om kapitaltilførselsafgift, id.

    Kildeskatteloven (Act on Withholding Tax) Lovbekendtgørelse nr. 662 af 19. Oktober 1989 om opkraevning af indkomst—og formueskat for personer m.v., id.

    Kommuneskatteloven (Local Authority Income Tax Act) Lovbekendtgørelse nr. 620 af 25. Sept. 1987 om kommunal indkomstskat, id.

    Kulbrinteskatteloven (The Hydrocarbon Tax Act) Lovbekendtgørelse nr. 739 af 20. Nov. 1987 om beskatning af indkomst i forbindelse med kulabrinteindvinding i Danmark, id.; also [in English] reprinted in 9 TLW, at 115 (as amended to Nov. 1988) [in English].

    Kulbrinteopkrævningsloven (Act on Collection of Hydrocarbon Tax) Lovbekendtgørelse nr. 740 af 20. Nov. 1987 om ansættelse og opkrævning m.v. af skat ved kulbrinteindvinding, id. also [in English] reprinted in 9 TLW, at 125 (as amended to Nov. 1988) [in English].

    Kursgevinstloven (Act on Gains from Bonds and Securities) Lovbekendtgørelse nr. 627 af 29. Sept. 1987 om skattemæssig behandling af gevinst og tab påfordringer og gæld, id.

    Ligningsloven (Act on Tax Assessment) Lovbekendtgørelse nr.’660 af 10. Oktober 1989 om påligningen af indkomst—og formueskat til staten, id.

    Pensionsbeskatningsloven (Act on Taxation of Pension Schemes) Lovbekendtgørelse nr. 569 af 26. Aug. 1987 om beskatning af pensionsordninger m.v., id.

    Personskatteloven (The Personal Tax Act), Lovbekendtgørelse nr. 661 af 19. Oktober 1989 om indkomstskat og formueskat for personer m.v., id.

    Realrenteafgitsloven (Act on Real Interest Tax) Lovbekendtgørelse nr. 762 af 12. Dec. 1988 om en realrenteafgift af visse pensionskapitaler m.v., id.

    Rentenedslagsloven (Act on Interest Abatement) Lov nr. 343 af 4. Juni 1986 om nedslag i skatteansættelsen for renteindtægrer m.v., id.

    Sagkyndig bistandsloven (Act on Expert Advice) Bekendtgørelse nr. 518 af 8. Aug. 1986 af lov om omkostningsdaekning af udgifter til sagkyndig bistand i skattesager, id.

    Særlig Indkomstskat (Act on Special Income Tax) Lovbekendtgøretse nr. 900 af 21. Dec. 1987 om særlig indkomstskat m.v., id.

    Selskabsskatteloven (The Corporation Tax Act), Lovbekendtgørelse nr. 593 af 30. Sept. 1988 om indkomstbeskatning af aktielskaber m.v., id.

    Skattekontrolloven (Act on Tax Inspection) Bekendtgørelse nr. 28 af 11. Januar 1988 af skattekontrolloven, id.

    Skattestyrelsesloven (The Tax Administration Act), Lov nr. 824 af 19. Dec. 1989 om skattemyndighedernes organisation og opgaver m.v., id.

    Sømænd, saerlige fradrag (Act on Special Allowances for Seamen) Lov nr. 362 af 1. Juli 1988 om særlige fradrag til sømaend m.v., id.

    Statsskatteloven (Act on Income Tax to the Government) Lov nr. 149 af 10. April 1922 om indkomst—og formueskat til staten, id.

    Varelagerloven (Act on Stock-in-Trade) Lovbekendtgørelse nr. 564 af 21. Aug. 1987 om skattemaessig opgørelse af varelagre m.v., id.

    Virksomhedsomdannelsesloven (Business Conversion Act) Lovbekendtgørelse nr. 594 af 4. Sept. 1986 om skattefri virksomhedsomdannelse, id.

    Virksomhedsskatteloven (Act on Business Taxation) Lovbekendtgørelse nr. 575 af 22. Aug. 1989 om indkomstbeskatning af selvstændige erhvervsdrivende, id.

    Djibouti (DJI)

    Code général des impôts (General Tax Code), tome 1: Contributions directs (Direct Taxation); tome 2: Fiscalité indirecte (Indirect Taxation) (no author or date indicated, but seems to be an official publication dating from 1991).

    Dominica (DMA)

    We cite to the official gazette and to a 12-volume consolidation, called The Laws of Dominica in Force on the 31st Day of December 1990, prepared by the Law Revision Commission, Ministry of Legal Affairs, 1991. The laws in effect as of Jan. 1, 1996 are listed in Commonwealth of Dominica: Consolidated Index of Statutes and Subsidiary Legislation (Faculty of Law Library, University of the West Indies, Barbados 1996). The amending acts can be found in that index and are not listed here.

    Income Tax Act, ch. 67:01, Laws of Dominica.

    Tax Information Exchange Act, Laws of Dominica, ch. 67:02.

    Sales Tax Act, Laws of Dominica, ch. 67:06.

    Development Levy Act, Laws of Dominica, ch. 67:10.

    Stamp Act, Laws of Dominica, ch. 68:01.

    Hotel Occupancy Tax Act of April 1971, Laws of Dominica, ch. 70:06.

    Fiscal Incentives Act, Laws of Dominica, ch. 84:51.

    Rum Duty Act, ch. 70:02.

    Income Tax (Federal Emoluments) Act 1960 (Cap. 151).

    Provisional Collection of Taxes Act, ch. 66:02.

    Collection of Taxes Act, Laws of Dominica, ch. 66:01.

    Caribbean Free Trade Association Act, ch. 80:01.

    Consumption Tax Order, 1984, Statutory Rules and Orders (S.R.O.) № 23 of 1984, Official Gazette of June 28, 1984 (Government Printer).

    Consumption Tax (Amendment) Order of 1987, S.R.O. № 62 of 1987, Official Gazette of Nov. 19, 1987 (Government Printer).

    Consumption Tax (Amendment) Order of 1989, S.R.O. № 57 of 1989, Official Gazette of Dec. 28, 1989 (Government Printer).

    Consumption Tax (Amendment) Order of 1990, S.R.O. № 27 of 1990, Official Gazette of Aug. 23, 1990 (Government Printer).

    Consumption Tax (Amendment) Order of 1991, S.R.O. № 18 of 1991, Official Gazette of Apr. 25, 1991 (Government Printer).

    Consumption Tax (Amendment) Order of 1991, S.R.O. № 19 of 1991, Official Gazette of Apr. 4, 1991 (Government Printer).

    Consumption Tax (Amendment) Order of 1992, S.R.O. № 26 of 1992, Official Gazette of Aug. 6, 1992 (Government Printer).

    Consumption Tax (Amendment) Order of 1993, S.R.O. № 36 of 1993, Official Gazette of Aug. 26, 1993 (Government Printer).

    Consumption Tax (Amendment) Order of 1993, S.R.O. № 53 of 1993, Official Gazette of Dec. 2, 1993 (Government Printer).

    Consumption Tax (Amendment) Order of 1994, S.R.O. № 8 of 1994, Official Gazette of Mar. 3, 1994 (Government Printer).

    Foreign Currency Levy Act, Laws of Dominica, ch. 70:04.

    Dominican Republic (DOM)

    The Dominican Republic consolidated its tax legislation in a Tax Code in 1992, at the same time carrying out a tax reform. Mineral royalties are imposed under separate legislation (Mineral Law146, June 4, 1971).

    TC—Código tributario de la Republica Dominicana (Tax Code of the Dominican Republic) Ley № 11-92, May 16, 1992, reprinted in Código Tributario de la República Dominicana (1992), Government Publisher [in Spanish], in Francisco Canahuate, Ley № 11-92 de Código tributario de la República Dominicana (1992) and in IBFD-CIAT [in Spanish]; also reprinted in TLW (as amended to Nov. 1993) [in English].

    Ecuador (ECU)

    In contrast to Colombia and the Dominican Republic, Ecuador’s tax code is not a consolidation of all the tax laws, but rather constitutes the general provisions applicable to the various taxes. In addition to the sources listed below, the Ediciones Legales, S.A., Apartado 1703-186, Pasaje Donoso 131 y Whymper, Quito, publishes loose -leaf services [in Spanish] for tax and other areas of commercial law (fax 5932-507-729, or 554-954). The tax service is called Regimen Tributario Ecuatoriano, in three volumes.

    Decreto Ley № 1015-A, Codigo Tributario, Dec. 6, 1977 (as amended to Jan. 1996), reprinted in IBFD-CIAT [in Spanish].

    RTI—Ley de Régimen Tributario Interno, Función Legislativa № 56, Dec. 14, 1989, as amended to March 1997, reprinted in IBFD-CIAT [in Spanish].

    Impuesto al Valor Agregado (Value Added Tax), Ley de Régimen Tributario Interno, Función Legislativa № 56, Título II of Dec. 14, 1989 (as amended to Dec. 1996), reprinted in IBFD-CIAT [in Spanish] Official Gazette, Dec. 22 1989, reprinted in TLW (as amended to June 1991) [in English].

    Régimen Tributario de las Empresas Petroleras Mineras y Turísticas (Tax Regime Applicable to Petroleum, Mining and Tourism Enterprises), Función Legislativa № 56, Titulo IV of Dec. 14, 1989, reprinted in IBFD-CIAT [in Spanish].

    Ley de Impuesto a la Renta (Income Tax Law), RO 305:8-IX-71, reprinted in Ley de Impuesto a la Renta y Reglamento (Corporación de Estudios y Publicaciones 1988) (as amended to Aug. 1988) [in Spanish], reprinted in IBFD-CIAT [in Spanish].

    D.S. № 87, Ley de Timbres y Tasas Postales Telegráficas (Law on Stamps and Telegraphic Postal Rates) (as amended to July 1988), reprinted in Corporación de Estudios y Publicaciones [in Spanish].

    Egypt (EGY)

    Income Tax Law, № 157 of 1981, Official Journal № 37, Sept. 10, 1981, reprinted in TLW (as amended by Law № 187 of 1993) [in English], amended by Law № 90 of 1996, Official Journal, № 25 bis, June 30, 1996; Law № 226 of 1996, Official Journal, № 26 bis, July 14, 1996.

    Law № 147 of 1984, imposing a duty for the development of the financial resources of the state.

    Sales Tax Law of 1991, Apr. 23, 1991.

    Fiscal Stamp Law № 111 of 1980, amended by Law 155 of 1980 (imposes stamp duty).

    El Salvador (SLV)

    Decreto Legislativo № 134, Ley de Impuesto sobre la Renta, Dec. 18, 1991, as amended to Oct. 1994, reprinted in IBFD-CIAT [in Spanish].

    Decreto Legislativo № 296, Impuesto a la Transferencia de Bienes Muebles y a la Prestación de Servicios (Tax on Transfers of Personal Property and the Provision of Services) of July 24, 1992, as amended by Decreto № 406 of July 13, 1995, reprinted in IBFD-CIAT [in Spanish].

    Equatorial Guinea (GNQ)

    The tax laws of Equatorial Guinea have been consolidated into one law, cited below, which is therefore effectively a tax code.

    Decreto-Ley № 1/1986 por el que se aprueba el sistema tributario de la República de Guinea Ecuatorial (Law Approving the Tax System), B.O.E., 24 de febrero de 1986 [in Spanish].

    Decreto-Ley № 7/1988, por el que se modifican ciertos artículos del Decreto Ley № 1/1986, Aug. 17, 1988 (amending the above).

    Eritrea (ERT)

    ITP—Proclamation № 62/1994, Income Tax Proclamation, 4 Gazette of Eritrean Laws № 7, Oct. 5, 1994 [in English].

    Proclamation № 63/1994, Rural Agricultural Income Tax and Cattle Tax Proclamation, 4 Gazette of Eritrean Laws № 7, Oct. 5, 1994 [in English].

    Proclamation № 64/1994, Sales and Excise Tax Proclamation, 4 Gazette of Eritrean Laws № 8, Oct. 5, 1994 [in English].

    Proclamation № 65/1994, Stamp Duty Proclamation, 4 Gazette of Eritrean Laws № 9, Oct. 5, 1994 [in English].

    Proclamation № 67/1995, Income Tax on Eritreans Working Abroad, Feb. 10, 1995.

    Estonia (EST)

    The tax laws of Estonia were substantially reformed in 1993. We cite a commercially published book constituting a compilation of the tax laws, translated into English (Estonian Taxes). Updated versions in English are available from IMG Konsultant, Liivalaia 12, Tallinn, EE0001, Estonia. Fax: 372-6461153. Cites to RT are to the official gazette (Riigi Teataja). Some cites are to a Russian translation of the official gazette called Pravovye Akti Estonii (PAE) (e.g., PAE 1997, 41, 808 means item 808 of issue41 of 1997). In addition to those listed below, an excise tax on packaging and a tax on natural resources (under the law on environmental protection) are imposed.

    Law on Taxation, RT 1996, 57, 714 (as amended to Apr. 10, 1996), reprinted in PAE, Oct. 15, 1996 [in Russian]. Law on Taxation, RT 1994, 30, 5 (as amended to March 16, 1994), reprinted in Estonian Taxes (Piret Joalaid ed., Marje Einre trans., AS Vaba Maa 1994) [in English].

    Amended by PAE 1996, 57, 714; 1996 50/51, 953; 1996, 60, 1379; 1996, 62/63, 1447; 1997, 22, 363; 1997, 30, 447; 1997, 40, 778.

    Zakon o Vnesenii Dopolneniya v Zakon o Nalogooblozhenii (Amendment to the Law on Taxation), Mar. 11, 1997, reprinted in PAE, Mar. 27, 1997 [in Russian].

    IT—Income Tax Law, PAE, 1994 3/4, 1184, Dec. 8, 1993 (as amended to Jan. 1, 1996), reprinted in PAE, Feb. 20, 1996 [in Russian], and in Estonian Taxes, supra [in English].

    Amended by PAE 1996, 11/12, 171; 1996, 19, 292; 1996, 27, 527; 1996, 56, 1240; 1996, 72/73, 1542; 1997, 21, 307; 1997, 30, 536; 1997, 35, 572; 1997, 41,808.

    Amendment to the Income Tax Law, Law on the Compensation Fund, Article 56, Sept. 11, 1996, reprinted in PAE, № 56, Oct. 10, 1996 [in Russian].

    Zakon o Vnesenii Izmeneniy v statyiu 5 Zakona o Pododokhodnom Naloge (Amendment to Article 5 of the Income Tax Law), Feb. 27, 1997, reprinted in PAE, Mar. 26, 1997 [in Russian].

    Income Tax Amendment Law, reprinted in PAE, № 31, May 12, 1997 [in Russian].

    Law on Value-Added Tax, RT 1996, 54, 1149 (as amended to Aug. 15, 1996), reprinted in PAE, Sept. 30, 1996 [in Russian]. Law on Value-Added Tax, RT I 1993, 60, 84, Aug. 25, 1993 (as amended to Dec. 9, 1993); reprinted in Estonian Taxes, supra [in English].

    Law on Amendments to the Law on Value-Added Tax, RT 1996, 60, 1344, reprinted in PAE, Nov. 15, 1996 [in Russian].

    Also amended by PAE 1996, 62/63, 1447; 1997, 12, 96; 1997, 35, 621; 1997, 40, 773; 1997, 41, 776.

    Law on Social Tax, RT 1990, 9, 102 (as amended to Dec. 7, 1993), reprinted in Estonian Taxes, supra [in English].

    Amendment to the Law on Social Tax, RT 1996, 59, 1307, reprinted in PAE, Oct. 25, 1996 [in Russian].

    Law on Land Tax, May 6, 1993, reprinted in PAE, June 21, 1993 [in Russian], and in Estonian Taxes, supra [in English]; amended by Zakon o Zemelnom Naloge (Land Law on Land Tax), RT I, 1996, 41, 797, in PAE, Dec. 23, 1996 [in Russian] and by Zakon o Vnesenii Izmeneniy v Zakon o Zemelnom Naloge, Dec. 10, 1996, in PAE, Jan. 10, 1997 [in Russian].

    Zakon o Vnesenii Izmeneniy v statyiu 5 Zakona o Zemelnom Naloge (Amendment to Article 5 of the Land Tax Law), Dec. 9, 1996, reprinted in PAE, Jan. 10, 1997 [in Russian].

    Zakona o Naloge c Azartnych igr (Law on Gambling Tax), Aug. 26, 1992, Vedomosti Estonskoy Respubliki 35, 458, Sept. 18, 1992 [in Russian], reprinted in Estonian Taxes, supra; Zakon o Vnesenii Izmeneniy v Zakon o Provedenii Lotereiy I v Statiy 7 Zakona o Naloge c Azartnych igr (Amendment to the Law on the Lottery and to Article 7 of the Law on Gambling Tax), Dec. 18, 1996, reprinted in PAE, Feb. 5, 1997 [in Russian].

    Law on Fur Excise Tax, RT 1991, 40, 492 (as amended to Aug. 24, 1992), reprinted in Estonian Taxes, supra [in English].

    Law on Tobacco Excise Tax, RT 1992, 31, 409, reprinted in Estonian Taxes, supra [in English]; amended by RT 1, 1996, 87, 1543, PAE, Dec. 23, 1996 [in Russian].

    Law on Motor Fuel Excise Tax, RT 1993, 38, 563, reprinted in Estonian Taxes, supra [in English]; Zakon o Vnesenii Izmeneiy v Zakon ob Aktsize na Motornoe Toplivo (Amendment to the Law on Motor Fuel Excise Tax), RT I, 1996, 74, 1308, reprinted in PAE, Oct. 25, 1996 [in Russian]; Amendment to the Law on Motor Fuel Excise Tax, RT 1, 1996, 80, 1436, reprinted in PAE, Nov. 22, 1996 [in Russian].

    Law on Alcohol Excise Tax, RT 1992, 11, 170 (as amended to Jan. 27, 1994), reprinted in Estonian Taxes, supra (as amended to Mar. 15, 1994) [in English], amended by RT 1, 1996, 87, 1544, PAE, Dec. 23, 1996 [in Russian].

    Law on State Duty, RT 1995, 22, 328 (as amended to Feb. 15. 1995), reprinted in PAE, Sept. 23, 1996 [in Russian]; Law on State Duty, RT 1990, 11, 118 (as amended to Feb. 9, 1994), reprinted in Estonian Taxes, supra [in English]; Amendment to the Law on State Duty, RT 1996, 52, 969, reprinted in PAE, Sept. 19, 1996 [in Russian].

    Ethiopia (ETH)

    Income Tax Proclamation, 1961, as amended through Proclamation № 36/1996, Federal Negarit Gazeta, № 2, № 24 (May 14, 1996), reprinted in TLW [in English].

    Act № 68/1993, Sales and Excise Tax Proclamation, id.

    Act № 53/1993, Mining Income Tax Proclamation, as amended by Proclamation 23/1996, Federal Negarit Gazeta, № 2, № 11 (Feb. 15, 1996), id.

    Act № 296/1986, Petroleum Operations Income Tax Proclamation, id.

    Proclamation № 37/1996, Investment Proclamation, id.

    Proclamation № 77/1976, Rural Land Use Fee and Agricultural Activities Income Tax, id.

    Act № 334/1987, Stamp Duty Proclamation, id.

    Act № 108/1994, Payment of Tax on Gains from Capital Proclamation, id.

    Fiji (FJI)

    In addition to those listed below, Fiji imposes natural resource royalty, urban land tax, and land sales tax.

    Income Tax Act, reprinted in Laws of Fiji: ch. 201, rev. 1985, Income Tax (Government Printer). Amended by

    • Act № 9 of 1995, Income Tax (Amendment) Act, 1995 (Suva, Govt. Printer)

    • Act № 18 of 1995, Income Tax (Amendment) (№ 2) Act, 1995 (Suva, Govt. Printer)

    • Act № 2 of 1996, Income Tax (Amendment) Act, 1996 (Suva, Govt. Printer)

    Hotel Turnover Tax, id, ch. 202.

    Excise Tax, id, ch. 199, amended by Act № 22, Excise (Amendment) Act, 1996; Act № 29, Excise (Amendment) (№ 2) Act, 1996.

    Value Added Tax Decree 1991, Decree № 45, 5 Fiji Republic Gazette 913 (extraordinary ed. Nov. 22, 1991), amended by Value Added Tax (Amendment) Act, 1995; Act № 29 of 1995, Value Added Tax (Amendment) (№ 2) Act, 1995.

    Stamp Duties Act, reprinted in Laws of Fiji, ch. 205, rev. 1985.

    Finland (FIN)

    In addition to those listed below, Finland imposes payroll tax, church tax, net wealth tax, excise, motor vehicle tax, stamp duty, and real estate tax. The tax laws (and other legal publications) are available [in Finnish] from Lakimiesliiton Kustannus, Uudenmaankatu 4-6 A, 00120 Helsinki, Finland.

    Income Tax, reprinted in TLW (as amended to Mar. 1989) [in English]; Act on Amendments to the Income Tax Law, Jan. 1, 1996, available on microfiche and on TaxBase [in Finnish].

    Laki Perinto—Ja Lahjaverlolain Muuttamisesta (Law of Amendments to Inheritance and Gift Tax Law) Dec. 1995, available on TaxBase [in Finnish].

    Laki Arvonlisaverolain Muuttamisesta (Law of Amendments to VAT Law), Jan. 1996, available on TaxBase [in Finnish].

    France (FRA)

    The tax laws of France are consolidated into the Code général des impôts. In 1981, the procedural provisions were moved to a separate volume, called the book of tax procedures. Taxes that have their legal basis outside the general tax code and the finance laws are Departmental Tax to Preserve Sensitive Natural Areas (Loi № 85-729 sur la taxe départementale des espaces naturels sensibles) and Levy for Failure to Provide Parking Places (art. 69, Loi du 31 décembre 1976). See EU Inventory.

    CGI—Code général des impôts 1996 (General Tax Code), reprinted in Code général des impôts (Dalloz 1996) (as amended to Dec. 11, 1995) [in French].

    Livre de procédures fiscales 1992, Ministère du budget, Imprimerie nationale 1992 [in French].

    Gabon (GAB)

    Code général des impôts directs et indirects (General Code of Direct and Indirect Taxes), reprinted in Gabon, Ministère de l’économie et des finances—direction générale des contributions directes et indirectes, Code général des impôts directs et indirects (Multipress-Gabon S.A., Sept. 1, 1997) [in French].

    Gambia, The (GMB)

    We cite to the codification as of 1990 (Laws of The Gambia), as well as to individual laws obtained from the government printer.

    Income Tax Act № 26 of 1948, as amended through Act № 5 of 1990, Act № 17 of 1992, Income Tax (Amendment) Act of 1992, Act № 6 of 1994, Income Tax (Amendment) Act of 1993, Act № 7 of 1994, Taxpayer Identification Number Act of 1993, reprinted in Laws of The Gambia (1990), Cap. 81, amended by Decree № 63, Income Tax Act (Amendment) Decree, 1995 (Banjul, Govt. Printer).

    Stamp Act № 12 of 1931 (as amended to 1985), id., at Cap. 82.

    National Sales Tax Act № 9 of 1988, id., at Cap. 83:01.

    Taxes Act № 11 of 1984 (as amended to 1988), id,. at Cap. 83:02.

    Private Practitioners Tax Act № 10 of 1983, id., at Cap. 83:03.

    National Development Levy Act № 26 of 1976, id., at Cap. 83:04.

    Payroll Tax Act № 22 of 1976, as amended to 1984, id., at Cap. 83:05.

    Groundnuts Sales Tax Act № 1 of 1963, id., at Cap. 83:06.

    Medical Services (Financial Contributions) Act № 11 of 1983, id., at Cap. 83:07.

    Parastatal Corporations (Payment of Royalties) Act № 14 of 1984, id., at Cap. 83:08.

    Taxpayer Identification Number Act № 7 of 1994, the Government Printer.

    Georgia (GEO)

    Georgia has adopted a tax code, the provisions of which come into effect on various dates between July 24, 1997 and Jan. 1, 1998. As of Jan. 1, 1998, the tax code replaces all the existing tax legislation of Georgia, with the exception of certain provisions of the road fund. Accordingly, we list below only the tax code and the road fund law.

    TC—Tax Code of Georgia, July 9, 1997. Amendments passed September 1997. English translation will probably become available on the website of the Georgian Parliament (www.parliament.ge).

    Zakon Respubliki Gruziya № 802 O Dorozhnom Fonde v Respubliki Gruziya (Law № 802 of the Republic of Georgia on the Road Fund), Sept. 2, 1995, reprinted in Nalogi v Gruzii, Kodifitsirovannyy Tekst Nalogovogo Zakonodaterstva po Sostoyaniyu na 1996 g., Sagadasakhado Matsne, Tbilisi [in Russian] and in Georgian Taxes (Mar. 1, 1996), Sagadasakhado Matsne Publishers 1996 [in English].

    Germany (DEU)

    All cites are to the official gazette: Bundesgesetzblatt (BGBl.). A comprehensive list of German tax legislation with the official gazette cites and amendments can be found on the internet at http://www.jura.un-sb.de/BGBl/SYS6l0.HTML. The full text of the laws, however, is available only for acts adopted after 1995. There are also several commercial compilations of German tax law that are published annually; we cite Deutsche Steuergesetze 1996, 8th ed. IDW-Verlag GmbH, Düsseldorf, which contains, according to its publisher, the text of the more important tax legislation. Beck Verlag (München) publishes a one-volume loose-leaf collection of the tax laws (it is called Steuergesetze). The tax laws and regulations are also available [in German] on CD, published by Verlag Neue Wirtschafts-Briefe, Postfach 101849, 44629 Herne, Germany. In addition to the listed taxes, the following taxes are imposed: tax on dogs, hunting and fishing tax, excise duty on mineral oils, duty on tobacco, duty on spirits, excise duty on beer, duty on beverages, excise duty on sparkling wines, tax on licenses to sell beverages, duty on intermediate products, excise duty on coffee. References to the laws imposing these taxes are found in EU Inventory.

    AO—Abgabenordnung 1977 (Fiscal Code), BGB1. I S. 613, ber. BGBL 1977 I S. 269, reprinted in Deutsche Steuergesetze 1996 (8th ed., IDW-Verlag GmBH 1996) (as amended to 1996) [in German].

    Europäischen Gemeinschaften (EG)—Amtshilfe-Gesetz (Law on Assistance to Authorities Within the European Union), Dec. 19, 1985, BGBl. I S.2441, reprinted in id.

    Gesetz zur Entlastung des BFH (Bundesfinanzhofs) (Law on Streamlining for the Federal Tax Court), Sept. 15, 1975, BGBl. I S.1861, reprinted in id.

    Gesetz über die Finanzverwaltung (FVG) (Law on Tax Administration), Aug. 30, 1971, BGBl. I S. 1426, id.

    EStG—Einkommensteuergesetz 1990 (Income Tax Law), Sept. 7, 1990, BGBl. I S. 1898, id., reprinted in TLW (as amended to Dec. 21, 1992).

    Eigenheimzulagengesetz (Law Governing the Capital Gains on Residences), Dec. 15, 1995 (BGBl. I S.1783), reprinted in Deutsche Steuergesetze, supra.

    Solidaritätszuschlaggesetz (Solidarity Contribution Law), June 23, 1993, BGBl. I S. 975, id.

    Gesetz über die Besteuerung bei Auslandsbeziehungen (Außensteuergesetz) (Foreign Tax Law), Sept. 8, 1972, BGBl. 1972 I S. 1713, BStBl. I S. 450, id.

    Auslandsinvestitionsgesetz (Foreign Investment Tax Law), Aug. 18, 1969, BGBl. 1969 I S. 1211, 1214, id.

    Berlinförderungsgesetz (BerlinFG) (Berlin Incentives Law), Feb. 2, 1990, BGBl. I S.174, id.

    DDR-IG—Investitionsgesetz (DDR Investment Law), June 26, 1990, BGBl. I S. 1143, id.

    FGG—Fördergebietsgesetz (Regional Promotion Law), Sept. 23, 1993, BGBl. I S. 1655, id.

    InvZulG—Investitionszulagengesetz 1996 (Investment Additions Law 1996), Jan. 22, 1996, BGBl. I S. 61, id.

    Steuerliches Kapitalerhöhungsgesetz (Capital Increase Tax Law), Oct. 10, 1967, BGBl. I S. 977, id.

    Umwandlungssteuergesetz (Reorganization Tax Law), Oct. 28, 1994, BGBl. I S. 3267, id.

    Fünftes Vermögensbildungsgesetz (Fifth Capital Formation Law), Mar. 4, 1994, BGBl. I S. 407, id.

    Wohnungsbau-Prämiengesetz (Law on Premium for Residential Construction), July 30, 1992, BGBl. I S. 1405, id.

    Zonenrandförderungsgesetz (Zonal Area Promotion Law), Aug. 5, 1971, BGBl. I S. 1237, id.

    KStG—Körperschaftsteuergesetz 1991 (Corporation Tax Law), Mar. 11, 1991, BGBl. I, 639, id., reprinted in TLW (as amended through Feb. 25, 1992).

    Gewerbesteuergesetz (Business Tax Law), Mar. 21, 1991, BGBl. I S. 815, reprinted in Deutsche Steuergesetze, supra.

    UmwStg—Umsatzsteuergesetz 1991 (Turnover Tax Law), Apr. 27, 1993, BGBl. I S. 566, ber. S. 1160, id.

    BewG—Bewertungsgesetz (Valuation Tax Law), Feb. 1, 1991, BGBl. I S. 231, id.

    Vermögensteuergesetz (Wealth Tax Law), Nov. 14, 1990, BGBl. I S. 2467, id.

    Erbschaftsteuergesetz (Inheritance Tax Law), Feb. 19, 1991, BGBl. I S. 469, id.

    Grundsteuergesetz (Land Tax Law), Aug. 7, 1973, BGBl. I S. 965, id.

    Grunderwerbsteuergesetz (Land Transfer Tax Law), Dec. 17, 1982, BGBl. I S. 1777, id.

    Feuerschutzsteuergesetz (Fire Protection Tax Law), Jan. 10, 1996, BGBl. I S. 19, id.

    Kraftfahrzeugsteuergesetz (Motor Vehicle Tax Law), May 24, 1994, BGBl. I S. 1103, id.

    Rennwett-und Lotteriegesetz (Racing and Lottery Law), Apr. 8, 1922, RGBl. S. 393, id.

    Versicherungsteuergesetz 1996 (Insurance Tax Law), Jan. 10, 1996, BGBl. I S. 23, id.

    Steuerberatungsgesetz (Tax Advising Law), Nov. 4, 1975, BGBl. I S. 2735, id.

    Ghana (GHA)

    In addition to those listed below, Ghana imposes gift tax (in limited circumstances), payroll tax, wealth tax, stamp duty, commercial passenger vehicle tax, casino revenue tax, service tax, and motor vehicle purchase tax.

    Income Tax Decree, 1975, S.M.C.D. 5, Gazette of Dec. 24, 1975, reprinted in Income Tax Decree, 1975: Consolidated up to June 1996 (Commissioner of Internal Revenue), reprinted in TLW (as amended to Dec. 1991).

    Income Tax (Delivery of Returns) Law of 1988, reprinted in TLW.

    Act № 514, Income Tax (Amendment) Act, 1996.

    Act № 515, Income Tax (Amendment) (№ 2) Act, 1996, June 26, 1996, available on TaxBase.

    Capital Gains Tax Decree, 1975, N.R.C.D. 347, Gazette of Aug. 29, 1975.

    Capital Gains Tax (Amendment) Decree, 1976, S.M.C.D. 46, Gazette of July 30, 1976.

    Capital Gains Tax (Amendment) Law, 1988, P.N.D.C.L. 198, Gazette of July 8, 1988.

    Capital Gains Tax (Amendment) Law, 1990, P.N.D.C.L. 302, Gazette of June 22, 1990.

    Capital Gains Tax (Amendment) Law, 1991, P.N.D.C.L. 267, Gazette of Nov. 1, 1991.

    Act № 513 of 1996, Capital Gains Tax (Amendment) Act, 1996.

    Value Added Tax Act, 1994, Act № 486.

    Internal Revenue Service Law 1986 (P.N.D.C.L. 143).

    Additional Profit Tax Law 1985, reprinted in TLW (as amended to Dec. 1991).

    Petroleum Income Tax Law, 1986, P.N.D.C.L. 185, Aug. 7, 1987. id.

    Selective Alien Employment Tax (Amendment) Law, 1991, Nov. 1, 1991. id.

    Act № 502, Customs and Excise (Duties and Other Taxes) Act, 1995, P.N.D.C.L. 330.

    Act № 512, Customs and Excise (Duties and Other Taxes) Act, 1996, P.N.D.C.L. 330.

    Act № 496, Customs and Excise (Petroleum Taxes and Petroleum-Related Levies) Act, 1995.

    Act № 509, Customs and Excise (Petroleum Taxes and Petroleum-Related Levies) (Amendment) Act, 1996.

    Act № 311 of 1965, Stamp Act, 1965, amended by Act № 510, the Stamp (Amendment) Act, 1996.

    Greece (GRC)

    In addition to those listed below, Greece imposes inheritance and gift tax, payroll tax, stamp duty on wages, real estate transfer tax, tax on corporate capital contributions, capital gains tax, turnover tax, stamp duties, tax on movement of capital, special tax on bank transactions, duty on tobacco products, duty on purchases of manufacturing tobacco in leaf form, excise duty on cigarette paper, road tax on motor vehicles, single-payment additional duty on motor vehicles, special passenger vehicle tax, special tax on petroleum products, duty on alcohol and alcoholic products, tax on television advertisements, duty on malt, duty on isopropyl alcohol, income tax levy on behalf of the Agricultural Insurance Organization, additional 0.5 percent tax on the value of all imported goods, port use tax on petroleum products (including imported products), central bank levy, levy on behalf of the Merchant Marine Pensions Fund, duty on alcoholic beverages, special duty on bananas, special levy under Legislative Decree № 49/1968 (private goods vehicles), special levy under Law № 383/1976 (public goods vehicles), charge on heavy plant and machinery, and levy in favor of ELGA (Greek Agricultural Insurance Organization). References to the laws imposing these taxes are found in EU Inventory.

    Income Tax, reprinted in TLW (as amended to Mar. 1988) [in English].

    Value Added Tax, reprinted in TLW (as amended to Mar. 1988) [in English].

    Grenada (GRD)

    Grenada: Consolidated Index of Statutes and Subsidiary Legislation (as of Jan. 1, 1997) has been published by the Faculty of Law Library, University of the West Indies, Barbados. This lists the amending laws, and so they will not be listed here. The tax laws listed are as follows:

    Excise Act (Cap. 94).

    General Consumption Tax Act 1995.

    Income Tax Act 1994, amended by Act № 5 of 1996, Income Tax (Amendment) Act, 1996; Act № 33, Income Tax (Amendment) (№ 2) Act, 1996.

    Land Transfer Tax Act (Cap. 163).

    Motor Vehicles Tax Act 1994.

    Petrol Tax Act 1986.

    Provisional Collection of Taxes Act (Cap. 261).

    Purchase Tax Act 1978.

    Stamp Act (Cap. 309).

    Ticket Tax Act (Cap. 319).

    Guatemala (GTM)

    In addition to those listed, Guatemala imposes inheritance and gift tax, payroll tax, natural resource royalties, mercantile tax (net asset tax), and solidarity tax (for 1997; based on income and net assets).

    Decreto № 26-92, Impuesto sobre la renta (Income Tax Law), May 7, 1992, (as amended to Oct. 13, 1995), reprinted in IBFD-CIAT [in Spanish] and in TLW [in English].

    Decreto № 27-92, Impuesto al valor agregado (Value Added Tax Law), May 7, 1992 (as amended by Decree № 60-94 of Nov. 30, 1994), reprinted in IBFD-CIAT [in Spanish] and in TLW (as amended to Nov. 1993) [in English].

    Decreto № 6-91, Codigo tributario (Tax Code) Mar. 25, 1991 (as amended to 1996), reprinted in IBFD-CIAT [in Spanish].

    Decreto № 61-87, Ley del impuesto del papel sellado y timbres fiscales (stamp tax), reprinted in Luís Emilto Barrios Pérez, Leyes y Reglamentos de la Reforma Tributaria (Ediciones Legales Comercio e Industria 1991).

    Decreto № 64-87, Ley del impuesto sobre circulación de vehiculos (vehicle tax), id.

    Decreto № 62-87, Ley del impuesto unico sobre inmuebles (tax on immovable property), id.

    Decreto № 63-87, Ley de fomento avícola (poultry development incentives), id.

    Guinea (GIN)

    Ordonnance 91-018 portant code des impôts directs d’état (Code on Direct State Taxes) Feb. 8, 1991 [in French].

    Ordonnance 92-013 portant loi de finances pour 1992 (Finance Law), Feb. 7, 1992, Secretariat Général du Gouvernement [in French].

    Loi L/95/009/AN, portant loi de finances pour 1996, Dec. 28, 1995 [in French].

    Guinea-Bissau (GNB)

    We cite to the official gazette (Boletim oficial).

    Decreto № 20/80 Aprova o Regulamento do Imposto do Selo (Stamp Tax Regulations), B.O. 10 de maio de 1980 [in Portuguese].

    Decreto № 23/83 Aprova o Código do Imposto Profissional (Professional Tax Code), B.O. 6 de agosto de 1983 [in Portuguese].

    Decreto № 39/83 Aprova o Código da Contribuição Industria, (Industrial Tax Code), B.O. 30 de decembro de 1983 [in Portuguese].

    Decreto № 5/84 Aprova o Código da Contribuição Predial Urbana (Urban Tax Code), B.O. 3 de março de 1984 [in Portuguese].

    Guyana (GUY)

    We cite to the official codification (Laws of Guyana) (cited as 1973 rev.), the last update for which was issued in 1977, and to individual laws from the government printer subsequent to that time. For amending acts, see also Guyana: Consolidated Index of Statutes and Subsidiary Legislation (1996).

    Acreage Tax Act (Cap. 81:22), 1973 rev.

    Excise Regulations Act (Cap. 82:03), 1973 rev.

    Provisional Collection of Taxes Act (Cap. 79:03), 1973 rev.

    Revenue Protection Act (Cap. 79:01), 1973 rev.

    Rice (Cess) Act (Cap. 80:05), 1973 rev.

    Stamp Duties (Management) Act (Cap. 80:03), 1973 rev.

    Sugar Levy Act 1974 (Cap. 83:01), 1973 rev.

    Act № 43 of 1939, Tax Act (an act to consolidate the enactments relating to the imposition of taxes for the public use in Guyana), Cap 80:01, L.R.O. 1/1977, reprinted in Laws of Guyana, as amended through Act № 46 of 1974, amended by

    • Act № 8 of 1978 Tax Amendment Act 1978.

    • Act № 13 of 1978 Tax Amendment Act (№ 2) 1978.

    • Act № 4 of 1981 (Tax Amendment Act 1981).

    • Act № 5 of 1981 (Tax Amendment (№ 2) Act 1981).

    • Act № 7 of 1981 (Miscellaneous Enactments (Amendment) (№ 2) Act 1981).

    • Act № 12 of 1981 (Guyana Gold Board Act 1981).

    • Act № 3 of 1982 (Miscellaneous Enactments (Amendment) Act 1982).

    • Act № 5 of 1982 (Miscellaneous Enactments (Amendment) (№ 2) Act 1982).

    • Act № 14 of 1982 (Fiscal Enactments (Amendments) Act 1982).

    • Act № 6 of 1983 (Tax (Amendment) Act 1983).

    • Act № 11 of 1983 (Fiscal Enactments (Amendment) Act 1983).

    • Act № 8 of 1984 (Tax (Amendment) Act 1984).

    • Act № 4 of 1985 (Miscellaneous Enactments (Amendment) Act 1985).

    • Act № 9 of 1986 (Cinematograph (Amendment) Act 1986).

    • Act № 5 of 1987 (Fiscal Enactments (Amendment) Act 1987).

    • Act № 23 of 1988 (Fiscal Enactments (Amendment) Act 1988).

    • Act № 7 of 1989 (Tax (Amendment) Act 1989).

    • Act № 8 of 1989 (Tax (Amendment) (№ 2) Act 1989).

    • Act № 13 of 1989 (Fiscal Enactments (Amendment) (№ 2) Act 1989).

    • Act № 6 of 1991 (Taxation Laws (Relief) Act 1991).

    • Act № 20 of 1991 (Tax (Amendment) Act 1991).

    • Act № 7 of 1992 (Tax (Amendment) Act 1992).

    • Act № 26 of 1992 (Tax (Amendment) (№ 2) Act 1992).

    • Act № 3 of 1993 (Tax (Amendment) Act 1993).

    • Act № 11 of 1993 (Miscellaneous Enactments (Amendments) Act 1993).

    • Act № 10 of 1994 (Tax (Amendment and Miscellaneous Provisions) Act 1994).

    • Act № 3 of 1995 (Fiscal Enactments (Amendment) Act 1995).

    • Act № 3 Fiscal Enactments (Amendment) Act 1996, Feb. 29, 1996, available on TaxBase.

    Act № 13 of 1969, Consumption Tax Act, Cap. 80:02, L.R.O. 1/1977, reprinted in Laws of Guyana, as amended through Act № 4 of 1972, amended by

    • Act № 6 of 1980 Consumption Tax (Amendment) Act 1980,

    • Act № 7 of 1985 Consumption Tax (Amendment) Act 1985,

    • Act № 8 of 1986 Export and Import (Special Provisions) Act 1986, and

    • Act № 8 of 1993 Consumption Tax (Amendment) Act 1993.

    Act № 22 of 1927, Entertainments Duty Act, Cap. 80:06, L.R.O. 1/1973, reprinted in Laws of Guyana, as amended by

    • Act № 12 of 1977 Cinematograph (Amendment) Act 1977, and

    • Act № 6 of 1991 Taxation Laws (Relief) Act 1991.

    Act № 10 of 1973, Travel Voucher Tax Act, Cap. 80:09, L.R.O. 1/1975, reprinted in Laws of Guyana, as amended by

    • Act № 14 of 1982 Fiscal Enactments (Amendment) Act 1982, and

    • Act № 11 of 1983 Fiscal Enactments (Amendment) Act 1983.

    Act № 17 of 1929, Income Tax Act, Cap. 81:01, L.R.O. 1/1977, amended through Act № 3 of 1976, reprinted in Laws of Guyana, and in TLW (as amended to Apr. 1988), amended by

    • Act № 2 of 1978 Income Tax (Amendment) Act 1978,

    • Act № 18 of 1980 Income Tax (Amendment) Act 1980,

    • Act № 3 of 1982 Miscellaneous Enactments (Amendment) Act 1982,

    • Act № 14 of 1982 Fiscal Enactments (Amendment) Act 1982,

    • Act № 11, 1983 Fiscal Enactments (Amendment) Act 1983,

    • Act № 17, 1983 Savings Schemes Act 1983,

    • Act № 10 of 1985 Income Tax (Amendment) Act 1985,

    • Act № 2 of 1986 Income Tax (Amendment) Act 1986,

    • Act № 4 of 1986 Taxation Laws (Amendment) Act 1986,

    • Act № 5 of 1987 Fiscal Enactments (Amendment) Act 1987,

    • Act № 11 of 1988 Income Tax (Amendment) Act 1988,

    • Act № 23 of 1988 Fiscal Enactments (Amendment) Act,

    • Act № 6 of 1989 Fiscal Enactments (Amendment) Act 1989,

    • Act № 14 of 1989 Taxation Laws (Amendment) Act 1989,

    • Act № 6 of 1990 Income Tax (Amendment) Act 1990,

    • Act № 9 of 1991 Income Tax (Amendment) Act 1991,

    • Act № 28 of 1991 Fiscal Enactments (Amendment) Act 1991,

    • Act № 8 of 1992 Fiscal Enactments (Amendment) Act 1992,

    • Act № 13 of 1993 Fiscal Enactments (Amendment) Act 1993,

    • Act № 14 of 1993 Hotel Accommodation Tax Act 1993, and

    • Act № 3 of 1995 Fiscal Enactments (Amendment) Act 1995.

    Act № 16 of 1951, Income Tax (in Aid of Industry) Act, Cap. 81:02, L.R.O. 1/1973, as amended through Act № 47 of 1969, reprinted in Laws of Guyana, amended by

    • Act № 4 of 1986 Taxation Laws (Amendment) Act 1986,

    • Act № 14 of 1992 Fiscal Enactments (Amendment) (№ 2) Act 1992,

    • Act № 13 of 1993 Fiscal Enactments (Amendment) Act 1993, and

    • Act № 16 of 1994 Fiscal Enactments (Amendment) Act 1994.

    Act № 30 of 1970, Corporation Tax Act, Cap. 81:03, L.R.O. 1/1977, as amended by Act № 25 of 1971, reprinted in Laws of Guyana, amended by

    • Act № 14 of 1989 Taxation Laws (Amendment) Act 1989,

    • Act № 28 of 1991 Fiscal Enactments (Amendment) Act 1991,

    • Act № 14 of 1992 Fiscal Enactments (Amendment) (№ 2) Act 1992,

    • Act № 13 of 1993 Fiscal Enactments (Amendment) Act 1993, and

    • Act № 16 of 1994 Fiscal Enactments (Amendment) Act 1994.

    Act № 13 of 1966, Capital Gains Tax Act, Cap. 81:20, L.R.O. 1/1975, as amended through Act № 33 of 1970, reprinted in Laws of Guyana, amended by

    • Act № 11 of 1983 Fiscal Enactments (Amendment) Act 1983,

    • Act № 5 of 1987 Fiscal Enactments (Amendment) Act 1987,

    • Act № 6 of 1989 Fiscal Enactments (Amendment) Act 1989,

    • Act № 14 of 1989 Taxation Laws (Amendment) Act 1989,

    • Act № 6 of 1991 Taxation Laws (Relief) Act 1991,

    • Act № 8 of 1992 Fiscal Enactments (Amendment) Act 1992, and

    • Act № 16 of 1994 Fiscal Enactments (Amendment) Act 1994.

    Act № 19 of 1962, Property Tax Act, Cap. 81:21, L.R.O. 1/1977, as amended through Act № 6 of 1975, reprinted in Laws of Guyana, amended by

    • Act № 11 of 1983 Fiscal Enactments (Amendment) Act 1983,

    • Act № 5 of 1987 Fiscal Enactments (Amendment) Act 1987,

    • Act № 23 of 1988 Fiscal Enactments (Amendment) Act 1988,

    • Act № 6 of 1989 Fiscal Enactments (Amendment) Act 1989,

    • Act № 14 of 1989 Taxation Laws (Amendment) Act 1989,

    • Act № 8 of 1992 Fiscal Enactments (Amendment) Act 1992.

    Act № 14 of 1993, Hotel Accommodations Tax Act, reprinted in Laws of Guyana, Guyana National Printers, 1993.

    Haiti (HTI)

    Joseph Paillant, Code fiscal mis à jour 1994 (Imprimerie Henri Deschamps 1994) is a one-volume collection of tax laws and decrees and selected economic legislation. The legislative references to the Official Monitor are given in this book and so are omitted here.

    Impôt sur le revenu (income tax), reprinted in Paillant, supra [in French] and in TLW (as amended to Oct. 1994) [in English].

    Carte d’identité fiscale (tax identification card), Paillant, supra.

    Carte d’identité professionnelle (professional identity card), id.

    Droit de fonctionnement (fee for operation), id.

    Droit de non fonctionnement (fee for nonoperation), id.

    Droit de timbre proportionnel sur capital social (stamp duty in proportion to social capital), id.

    Droit de transmission des titres et taxe sur actions (fee for passage of title and tax on stock), id.

    Taxe sur masse salariale (tax on wages), id.

    Droit de licence (license duty), id.

    Droit pour l’obtention du quitus fiscal (tax clearance duty), id.

    Patente (license), id.

    Contribution foncière des propriétés bâties (tax on improved real estate), id.

    Droit d’alignement (fee for certifying boundary), id.

    Taxe pour numérotage des maisons (tax on house numbers), id.

    Taxe d’étalonnage (stamping fee), id.

    Taxe sur matériaux et denrées sur la voie publique (tax on materials on the public roads), id.

    Taxe sur le chiffre d’affaires (turnover tax), id.

    Droit d’accise (excise duty), id.

    Droit de timbre (stamp duty), id.

    Taxe sur les spectacles publics (tax on public shows), id.

    Taxe sur appels téléphoniques (tax on telephone calls), id.

    Taxe sur primes d’assurance (tax on insurance premiums), id.

    Taxe pour la légalisation des pièces (tax for the legalization of documents), id.

    Droit de péages sur les routes (road tolls), id.

    Taxe pour laisser passer (tax on free passage), id.

    Taxe frontalière (border tax), id.

    Taxe irrigation Fleuve Artibonite (Artibonite River irrigation tax), id.

    Taxe irrigation (irrigation tax), id.

    Taxe pour l’obtention de passeport (passport fee), id.

    Contribution à la construction d’un aéroport (contribution for construction of an airport), id.

    Taxe d’aéroport sur les passagers et marchandises (airport tax on passengers and merchandise), id.

    Taxe sur ticket de voyage (travel ticket tax), id.

    Inspection des véhicules (vehicle inspection), id.

    Immatriculation des véhicules (vehicle registration), id.

    Taxe de première immatriculation (tax on initial registration), id.

    Taxe pour permis de conduire (tax for driver’s license), id.

    Droit spécial sur bordereaux DGI, AGD, ED’H, TELECO (special duty on notes), id.

    Droit spécial sur police d’assurance véhicules contre-tiers (special duty on third-party vehicle insurance), id.

    Honduras (HND)

    Decreto-Ley № 25, Impuesto sobre la renta (Income Tax Law), Dec. 20, 1963, Gaceta № 18.161, reprinted in Secretaría de Hacienda y Crédito Público, Dirección General de Tributación, Ley de Impuesto sobre la Renta y sus Reformas (Secretaría de Hacienda y Crédito Público, Dirección General de Tributación 1987) (as amended to Aug. 1, 1987) [in Spanish], as amended to Apr. 1996, reprinted in IBFD-CIAT [in Spanish] and in TLW (as amended through June 1991) [in English].

    Decreto-Ley № 24 Impuesto sobre ventas (Sales Tax Law), Jan. 1, 1964, Gaceta № 18.161, reprinted in Secretaría de Hacienda supra, as amended by Decree № 135-94 of Oct. 12, 1994, and in IBFD-CIAT [in Spanish].

    Decree № 76, Gaceta, June 20, 1957, Tax on Transfer of Real Property, reprinted in TLW (as amended through 1979).

    Hungary (HUN)

    We cite to The Hungarian Rules of Law in Force [hereinafter HRLF]. This is a three-language version (Hungarian, German, and English) of selected Hungarian legislation, published by Verzál Ltd., Budapest (in the United States, distributed by Int’l Info. Services, Inc., P.O. Box 3490, Silver Spring, MD 20918). The Ministry of Finance also publishes translations of tax laws in a pamphlet series (Perfekt Publishing Company: Budapest). In addition to those listed below, Hungary imposes inheritance and gift tax, payroll tax, and real estate transfer tax.

    CTDT—Törvény a Társasági Adóról és az osztalékodóról (Corporate and Dividend Tax Law), Act LXXXI of 1996, reprinted in 8 HRLF 1 (Jan. 1, 1997).

    Törvény az Altalános Forgalmi Adóról (Value Added Tax Law), Act 74 of 1992, Magyar Közlöny № 128, Dec. 19, 1992, consolidated text reprinted in 8 HRLF 269 (Feb. 15, 1997).

    Act XCI of 1990 on the Rules of Taxation, consolidated text reprinted in 7 HRLF 453 (Apr. 1-15, 1996).

    PIT—Törvény a személyi jövedeemadóról (Act CXVII of 1995) on Personal Income Tax, consolidated text reprinted in 8 HRLF 73 (Jan. 15-Feb. 1, 1997).

    Act CXXVI of 1996 on the Use of a Specified Amount of Personal Income Tax for Public Purposes in Accordance with the Taxpayer’s Instruction, reprinted in 8 HRLF 731 (May 15, 1997).

    Act № 78 of 1991 on Consumption Tax and Consumption Price Subsidy, consolidated text reprinted in 7 HRLF 1184 (Sept. 15, 1996).

    Act LVIII of 1993 on the Regulation and Control of Excise and Subcontract Distillation Spirits Tax, reprinted in HRLF, № 1995/21, amended by

    • Act XXXIII of 1996, reprinted in 1996 HRLF 158.

    Act LXXXII of 1991 on the Motor Vehicle Tax, reprinted in HRLF № 1995/9, amended by

    • Act XCVIII of 1995, reprinted in 1996 HRLF 73.

    Act C of 1990 on Local Taxes, reprinted in HRLF 1993/8, amended by

    • Act XCVIII of 1995, reprinted in 1996 HRLF 76.

    Iceland (ISL)

    The following taxes are imposed in Iceland: corporate income tax, turnover tax (market charge, industrial loan fund contribution, and industrial charge), property tax, payroll tax, value added tax, excise, national income tax, net wealth tax.

    Lög nr. 75/1981 um Tekjuskatt og Eignarskatt (Law № 75/1981 on Income Tax), reprinted in Lög nr. 75/1981 um tekjuskatt og eignarskatt, med sidari breytingum (Fjármalaráduneytid 1987) (as amended to Law № 72 of Dec. 31, 1986) [in Icelandic].

    India (IND)

    The tax laws, rules, explanations, indexes to judicial decisions, and other materials are published in a series of publications by Taxman, 59/32 New Rohtak Road, New Delhi 110 005 (fax 91-11-5725041).

    The Income Tax Act, 1961, reprinted in J.P. Bhatnagar, All India Taxation Manual (Central Law Agency, Allahabad, 28th ed., 1992); reprinted in TLW (as amended through Finance Act, 1992), and in Taxman’s Income Tax Act (published annually by Taxman).

    The Expenditure Tax Act, 1987, reprinted in All India Taxation Manual, supra.

    The Interest Tax Act, 1974, id.

    The Wealth Tax Act, 1957, id.

    The Gift Tax Act, 1958, id.

    The Central Excise Tariff Act, 1985, reprinted in Central Excise Tariff 1991—92 ed. (Cen-Cus Publications: New Delhi 1991).

    The Central Excises and Salt Act 1944, reprinted in Central Excise: Law, Practice and Procedure (Acharya Shuklendra ed., Modern Law Publications, Allahabad 1987) (as amended to Sept. 1987).

    Indonesia (IDN)

    Taxation Laws of Indonesia (prepared by Dr. S. Sutanto) [hereinafter Tax’n Laws] is a multivolume loose-leaf set published by Asian-Pacific Tax and Investment Research Centre, Singapore, and IBFD Publications BV, Amsterdam. Besides the laws, it also contains regulations, decrees, and treaties [in English]. Besides those listed below, exit tax (on residents) and excise are imposed.

    Law № 6 of 1983, General Tax Provisions and Procedures, State Gazette of the Republic of Indonesia Year 1983 № 49, reprinted in Tax Laws of the Republic of Indonesia 1 (Ministry of Finance, Directorate General of Taxation 1991) [hereinafter MOF] [in English] and in Tax’n Laws, supra (as amended through 1994).

    IT—Law № 7 of 1983 Income Tax Law, State Gazette of the Republic of Indonesia Year 1983 № 50, reprinted in MOF and in Tax’n Laws, supra (as amended through 1994), reprinted in Indonesia, National Development Information Office, Law on Income Tax (B. Wiwoho ed., Jakarta 1996).

    Law № 8 of 1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods, State Gazette of the Republic of Indonesia Year 1983 № 51, reprinted in MOF and in Tax’n Laws, supra (as amended through 1994), reprinted in Indonesia, National Development Information Office, Law on Value Added Tax and Sales Tax (B. Wiwoho ed., Jakarta 1996).

    Law № 12 of 1985 Land and Building Tax, State Gazette of the Republic of Indonesia Year 1985 № 68, reprinted in MOF and in Tax’n Laws, supra (as amended through 1994).

    Law № 13 of 1985 Stamp Duty, State Gazette of the Republic of Indonesia Year 1985 № 69, reprinted in MOF and in Tax’n Laws, supra (as amended through 1994).

    Iran, Islamic Republic of (IRN)

    Law № 113, Income Tax Law, Nov. 22, 1982, reprinted in TLW (as amended through 1971) [in English].

    Iraq (IRQ)

    Law № 113, Income Tax Law, Nov. 22, 1982, reprinted in TLW (as amended to July 6, 1988) [in English].

    Ireland (IRL)

    As in the United Kingdom, the tax legislation of Ireland consists of periodic consolidations, together with annual finance acts that contain nontextual amendments.10Little point would be served in listing each of these here. The tax laws are collected in three volumes published annually by Butterworth Ireland: The Tax Acts, the VAT Acts, and the Capital Tax Acts. In addition to those listed, the following taxes are imposed: excise duty on hydrocarbons, excise duty on tobacco products, excise duty on ethyl alcohol, excise duty on wine, excise duty on made-wine, excise duty on beer, excise duty on cider and perry, betting duty, residential property tax, excise duty on certain licenses, orders and authorizations, and excise duty on foreign travel. References to the laws imposing these taxes are found in EU Inventory.

    ITA—Income Tax Act 1967, reprinted in The Tax Acts, supra.

    Capital Gains Tax Act 1975, id.

    Corporation Tax Act 1976, id.

    Value Added Tax Act 1972, reprinted in The VAT Acts, supra.

    Stamp Act 1891, reprinted in The Capital Tax Acts, supra.

    Stamp Duty Management Act 1891, id.

    Capital Acquisitions Tax Act 1976, id.

    Imposition of Duties (No 221) (Excise Duties) Order, 1975, as amended.

    Imposition of Duties (No 236) (Excise Duties on Motor Vehicles, Televisions, and Gramophone Records) Order, 1979, as amended.

    Imposition of Duties (No 273) (Excise Duty on Motorcycles) Order, 1984, as amended.

    Imposition of Duties (No 260) (Excise Duty on Video Players) Order, 1982, as amended.

    Israel (ISR)

    We cite to a commercially published loose-leaf compilation and translation. In addition to those listed below, payroll tax, petroleum royalties, property tax, real estate acquisition tax, and stamp duty are imposed.

    Income Tax Ordinance, reprinted in Income Tax Ordinance (Aryeh Greenfield-A.G. Publications 8th ed., Haifa, 1996) (as amended to March 1996) [in English].

    Income Tax (Inflationary Adjustments) Law. 5745-1985 (A.G. Publications, July 1990) [in English].

    Property Tax and Compensation Fund Law 5721-1961, reprinted in Property Tax and Compensation Fund Law (A.G. Publications, 3rd ed., 1992).

    Value Added Tax, reprinted in TLW (as amended to Apr. 1989) [in English] and in Value Added Tax 1997 (A.G. Publications, Jan. 1997) [in English].

    Taxes (Collection) Ordinance (consolidated and updated English translation) (A.G. Publications, Sept. 1994).

    Italy (ITA)

    In addition to those listed, the following taxes are imposed: duty on betting, tax on dogs, succession and gift duty, duty on mineral oils, duty on liquefied petroleum gases, duty on methane, consumption tax on manufactured tobacco, duty on mechanical lighters, duty on matches, duty on spirits, duty on beer, duty on electricity, entertainment tax, lottery duties, duty on official concessions, insurance tax, stock exchange turnover tax, registration tax, mortgage tax, cadastral duty, tax on motor vehicles, excise duty on plastic bags, tax on net assets, inheritance and gift tax, stamp duty, and corporate franchise tax. References to the laws imposing these taxes are found in EU Inventory.

    ISR—Istituzione e disciplina dell’imposta sul reddito delle persone fisiche (Personal Income Tax), Dec. 1986, reprinted in Italian Income Taxes Consolidated Text 30 (Peter C. Alegi trans., 2nd ed., Alegi & Associates, 1993) (as amended to Oct. 31, 1993) [in Italian, English] and in TLW (as amended to Apr. 28, 1993) D.P.R. № 917.

    Istituzione e disciplina dell’imposta sul reddito delle persone giuridiche (Corporate Incòme Tax), D.P.R. № 917 of Dec. 1986, reprinted in Alegi, supra, and in TLW (as amended to Apr. 28, 1993).

    Imposta locale sui redditi (Local Income Tax), reprinted in Alegi, supra.

    Imposta sul valore aggiunto (Value Added Tax), D.P.R. 26 ottobre 1972, n. 633, reprinted in Imposta sul Valore Aggiunto (2nd ed., Banco di Roma, ed., Collana Tributaria Edita, 1984) (as amended to 1984) [in Italian] and in TLW (as amended to Apr. 28, 1993).

    Disposizioni in materia di imposta sul valore aggiunto e di imposte sul reddito e disposizioni relative all’Amministrazione finanziaria, reprinted in Codice delle Imposte Dirette 121 (Edoardo Cintolesi & Mauro Longo, 8th ed., Buffetti Editore, 1987) (as amended to Jan. 1987) [in Italian] D.L. 19 diciembre 1984, n. 853, as amended to Feb. 1985.

    Legge n. 649 disposizioni relative ad alcune ritenute alla fonte sugli interessi ed altri proventi di capitate (Law Establishing Provisions Relating to Certain Withholdings from Interest Payments and Other Capital Earnings), Nov. 25, 1993, id.

    Decreto Legge 10 iuglio 1982, n. 429, Norme per la repressione dell’evasione in materia di imposte sui redditi e sull’lVA e per agevolare la definizione delle pendenze in materia tributaria (Decree-Law Providing Regulations for the Elimination of Income Tax Evasion and the Evasion of VAT and for Facilitating the Definition of Outstanding Tax Balances), id.

    Decreto del Presidente de la Republica 29 settembre 1973, n. 601, Disciplina delle agevolazioni tributarie (Decree governing tax payment facilities), id.

    Legge 4 maggio 1983, n. 169, Agevolazioni fiscali per l’ampliamento del mercato azionario e modifiche al D.P.R. 31 marzo 1975, n. 136 (Law providing for tax facilities for the development of the stock market and amending D.P.R. № 136 of March 1975), id.

    Legge 30 aprile 1985, n. 163, Agevolazioni per reinvestimenti nel settore dello spettacolo (Law Granting Facilities for Reinvestment in the entertainment industry), id.

    Decreto Ministeriale 4 giugno 1985, Modalità di applicazione delle agevolazioni fiscali concesse nel settore dello spettacolo (Law Defining the Manners in Which the Tax Concessions Granted to the Entertainment Industry Are to Be Applied), id.

    Decreto del Presidente de la Republica 29 settembre 1973, n. 602, Disposizioni sulla riscossione delle imposte sul reddito (Decree governing the collection of income tax), id.

    Decreto del Presidente de la Republica 26 ottobre 1972, n. 636, Revisione della disciplina del contenzioso tributario (Order Governing the Procedure for Tax Litigation), id.

    Jamaica (JAM)

    Jamaica: Consolidated Index of Statutes and Subsidiary Legislation (as of Jan. 1, 1996) has been published by the Faculty of Law Library, University of the West Indies, Barbados. This lists the amending laws, and so they will not be listed here. The tax laws listed are as follows:

    Contractors Levy Act 1985.

    Education Tax Act 1987.

    Estate Duty Law 1954.

    Excise Duty Act.

    General Consumption Tax Act 1991.

    Hotels (Accommodation Tax) Act.

    Income Tax Act, reprinted in TLW (as amended to March 1993).

    International Finance Companies (Income Tax Relief) Act 1971.

    Land Development Duty Act.

    Land Improvement Tax Act.

    Land Taxation (Relief) Act.

    Property (Rates and Taxes) (Relief) Act.

    Property Tax Act.

    Provisional Collection of Tax Act.

    Revenue Administration Act 1985.

    Revenue Board Act 1981.

    Rifle Clubs Tax Relief Law 1908.

    Stamp Duty Act.

    Tax Collection Act.

    Technical Assistance (Immunities and Privileges) Act 1982.

    Transfer Tax Act.

    Travel Tax Act.

    University of the West Indies (Tax Exemption) Act 1963.

    Urban Renewal (Tax Relief) Act 1995, № 14 of 1995.

    Japan (JPN)

    To get an overview of the tax system, it is helpful to consult An Outline of Japanese Taxes, published annually by the Ministry of Finance. This publication includes a table listing the national tax laws and regulations. As of 1995, besides the laws listed in the paragraphs below, the national tax laws included the following: Special Corporation Surtax Law, Law № 15 of Mar. 31, 1992; Land Value Tax Law of May 2, 1991; Registration and License Tax Law, Law № 35 of June 12, 1967; Liquor Tax Law, Law № 6 of Feb. 28, 1953; Tobacco Tax Law, Law № 72 of Aug. 10, 1984; Gasoline Tax Law, Law № 55 of Apr. 6, 1957; Aviation Fuel Tax Law, Law № 7 of Mar. 31, 1972; Petroleum Tax Law, Law № 25 of Apr. 18, 1978; Motor Vehicle Tonnage Tax Law, Law № 89 of May 31, 1971; Local Road Tax Law, Law № 104 of July 30, 1955; Securities Transaction Tax Law, Law № 102 of July 31, 1953; Liquefied Petroleum Gas Tax Law, Law № l56 of Dec. 29, 1965; Bourse Tax Law, Law № 23 of March 31, 1914; Tonnage Due Law, Law № 37 of Mar. 31, 1957; Special Tonnage Due Law, Law № 38 of Mar. 31, 1957; The Bank of Japan Law, Law № 67 of Feb. 24, 1942 (Bank of Japan Note Issue Tax); Promotion of Power-Resources Development Tax Law, Law № 79 of June 6, 1974; General Law of National Tax, Law № 66 of Apr. 2, 1962; Administrative Appellate Law, Law № 160 of Sept. 15, 1962; Law of Exemption, Reduction or Deferment of Collection of Taxes for Those Who Suffered from Disasters, Law№ 175 of Dec. 13, 1947; National Tax Violations Control Law, Law № 67 of Mar. 17, 1900; National Tax Collection Law, Law № 147 of Apr. 20, 1959.

    IT—Law № 33, The Income Tax Law, Mar. 31, 1965, reprinted in TLW (as amended to May 1990) [in English], also reprinted in The Income Tax Law of Japan, IV EHS Law Bulletin Series, Eibun-Horei-Sha, ed. (as amended to Dec. 1988) (1989) [hereinafter EHS] [in English].

    Consumption Tax Law, reprinted in Japan—National Consumption Tax Law: An English Translation with Cabinet Orders as of Apr. 1, 1989 (CCH International 1989) [in English].

    Law № 28, The Corporation Tax Law, Mar. 31, 1947, reprinted in EHS (as amended to June 1992) and in 21 TLW (as amended to 1990) [in English] and in translation by Yugi Gomi (1995).

    Law № 73, The Inheritance Tax Law, Mar. 31, 1950, reprinted in EHS (as amended to Mar. 1975) [in English].

    Law № 110, The Assets Revaluation Law, Apr. 25, 1950, reprinted in EHS (as amended to Dec. 1986) [in English].

    Law № 23, The Stamp Tax Law, Mar. 31, 1967, reprinted in EHS (as amended to May 1993) [in English].

    Law № 26, Special Taxation Measures Law, Mar. 31, 1957, reprinted in EHS (as amended to 1963) [in English].

    Jordan (JOR)

    Law № 57 of 1985 Income Tax Law of the Hashemite Kingdom of Jordan, reprinted in Income Tax Law of the Hashemite Kingdom of Jordan (as amended to 1995) [in English].

    Real Estate Sales Tax Law of 1974, reprinted in TLW [in English].

    Amended Sales Tax Law, 1995 (Ali and Sarif Law Office, Amman, 1996).

    Kazakhstan (KAZ)

    Most of the tax legislation of Kazakhstan was reformed and consolidated in a presidential decree issued in 1995, informally referred to as the tax code.

    TC—Ukaz o Nalogakh i Drugikh Obyazatel’nykh Platezhakh v Byudzhet, Apr. 16, 1995, reprinted in The Gazette of the Supreme Soviet of the Republic of Kazakhstan, 1995, № 5, p. 4, and in Decree on Taxes and Other Mandatory Payments to Revenue (Tax Code) (Ministry of Finance Informational Bulletin Bureau and International Tax and Investment Center 1997) (as amended to Mar. 1, 1997) [in Russian, English].

    Decree by the Government of the Republic of Kazakhstan, № 1747, Dec. 31, 1996, on Excise Rates for Goods Produced in the Republic of Kazakhstan and Subject to Excise Taxation, and for Gambling Business (this decree sets the excise tax rates, as authorized by the tax code).

    Zakon Respubliki Kazakhstan o Gosudarstvennoi poshline (Law of Republic of Kazakhstan on State Duty), Dec. 31, 1996, reprinted in Zakoni i Normativnie Akti “UG,” № 4 (1997) [in Russian].

    Kenya (KEN)

    Laws of Kenya is a multivolume loose-leaf service containing the consolidated text of laws, published by the Government Printer, Nairobi.

    IT A—The Income Tax Act, ch. 470, reprinted in TLW (as amended to Dec. 1994).

    The Customs and Excise Act, Laws of Kenya, ch. 472 (rev. 1984).

    The Telecommunications Tax Act, id., ch. 473 (rev. 1981).

    The Refinery Throughput Tax Act, id., ch. 474 (rev. 1983).

    The Air Passenger Service Act, id., ch. 475 (rev. 1989).

    The Value Added Tax Act, id., ch. 476 (rev. 1993), reprinted in The Kenya Value Added Tax Act (cap. 476) (Deloitte Touche Tohmatsu International 1997) (as amended to Jan. 1997).

    The Hotel Accommodation Tax Act, id., ch. 478 (rev. 1989).

    The Entertainments Tax Act, id., ch. 479 (rev. 1990).

    The Local Manufactures (Export Compensation) Act, id., ch. 482 (rev. 1987).

    The Second-Hand Motor Vehicles Purchase Tax Act, id., ch. 484 (rev. 1991).

    Act № 13 of 1995, Finance Act, 1995 (Nairobi, Govt. Printer).

    Kiribati (KIT)

    Income Tax Act 1990.

    Income Tax Amendment Act 1992.

    Korea (KOR)

    Besides the tax laws listed in the paragraphs below, the following national tax laws are listed in Ministry of Finance, Korea, Korean Taxation 1994 (this work provides a summary of the tax system and is updated annually): Excessively Increased Value of Land Law, Excess Profits Tax Law, Special Excise Tax Law, Liquor Tax Law, Telephone Tax Law, Stamp Tax Law, Transportation Tax Law, Education Tax Law, and Tax Evasion Punishment Law. Current Laws of the Republic of Korea is a multivolume loose-leaf set of English translations published by the Korea Legislation Research Institute [hereinafter Current Laws]. The tax laws are contained in Part IX: Tax, Tobacco and Ginseng Laws. In addition, where indicated, some of the cites below were obtained from GLIN, an online database hosted by the Library of Congress. These laws are available online in Korean only.

    Basic National Tax Act, reprinted in Current Laws, supra (as amended through Dec. 6, 1995) [in English].

    National Tax Collection Act, reprinted in id. (as amended through Dec. 6. 1995).

    Tax Accountant Act, reprinted in id. (as amended through Dec. 6, 1995).

    Tax Reduction and Exemption Control Act, reprinted in id. (as amended through Dec. 29, 1995).

    Corporation Tax Act, reprinted in id. (as amended through Dec. 29, 1995), amended by Law 5192, Dec. 30, 1996 [GLIN].

    Income Tax Act, reprinted in id. (as amended through Dec. 29, 1995), amended by Law 5155, Kwanbo, Aug. 14, 1996; Law 5191, Kwanbo Dec. 30, 1996 [GLIN].

    Securities Transaction Tax Act, reprinted in id. (as amended through Dec. 5, 1978).

    Value Added Tax Act, reprinted in id. (as amended through Dec. 29, 1995).

    Law for Coordination of International Tax Affairs (LCITA) and Presidential Enforcement Decree, Jan. 1996, available on TaxBase [in English].

    Inheritance Tax Law, reprinted in TLW (as amended through June 1991) [in English].

    Assets Revaluation Law, reprinted in TLW (as amended through June 1991) [in English].

    Law 5037, amends the Education Tax Act, Kwanbo, Dec. 29, 1995 [GLIN].

    Law 5026, amends the Special Accounting Act on Traffic Facilities, Kwanbo, Dec. 6, 1995 [GLIN].

    Law 5277, amends the Tourism Promotion Development Fund Act, Kwanbo, Jan. 13, 1997 [GLIN].

    Law 5034, amends the Special Consumption [excise], Kwanbo, Dec. 29, 1995 [GLIN].

    Law 5035, amends the Transportation Tax Act, Kwanbo, Dec. 29, 1995 [GLIN].

    Law 5163, amends the Tax Reduction and Exemption Control Act, Kwanbo, Oct. 2, 1996 [GLIN].

    Law 5193, amends the Inheritance Tax Act and changes the name of the Act to the Inheritance and Gift Tax, Kwanbo, Dec. 30, 1996 [GLIN].

    Law 5285, amends the Development Gain Collection Act, Kwanbo, Jan. 13, 1997 [GLIN].

    Law 5173, amends the Act Concerning the Adjustment of National and Local Tax, Kwanbo, Dec. 12, 1996 [GLIN].

    Kuwait (KWT)

    See also Ballantyne, Register of Laws of the Arabian Gulf (loose-leaf).

    Imposition of Tax [Corporations], reprinted in TLW (as amended to 1985) [in English].

    Kyrgyz Republic (KGZ)

    The Kyrgyz Republic consolidated and reformed its tax legislation in 1996 in a tax code modeled on that of Kazakhstan. Amendments to the code were made on Dec. 27, 1996.

    Zakon Respubliki Kyrgyzstan № 25, Nalogovi Kodeks, June 26, 1996 (Tax Code), reprinted in Nalogovi Kodeks (publisher not indicated, but presumably Ministry of Finance) (as amended through 1996) [in Russian].

    Lao People’s Democratic Republic (LAO)

    The following taxes are levied (as of May 1997): profit tax, income tax, real estate transfer tax, land tax, turnover tax, excises, business and professional licenses, road tax, air travel fees, transit tax, timber royalties, taxes on natural resources.

    Latvia (LVA)

    Latvia reformed its major tax laws in early 1995.

    TF—Law on Taxes and Fees, Feb. 2, 1995, 95 TNI 70-20, doc. 95-2044 [in English].

    Law on Excise Tax of Dec. 1990 (as amended to Mar. 1995) [in English].

    Izmeneniya v Zakone ob aktsiznom naloge (Amendments to Excise Tax Law), May 23, 1996, Diena, May 29, 1996 [in Russian].

    Izmeneniye v Zakone “Ob Aktsiznom Naloge” (Amendments to Excise Tax Law), June 20, 1996, Sreda, June 26, 1996 [in Russian].

    EIT—Law on Enterprise Income Tax, Feb. 9, 1995, 95 TNI 64-26, doc. 95-20442 [in English].

    Izmeneniye v Zakone “O Podokhodnom Naloge v Predpriyatiy” (Amendments to Enterprise Income Tax), June 21, 1996, Sreda, June 26, 1996 [in Russian].

    Zakon Latviyskoy Respubliki O Podokhodnom Naloge s Naseleniya (Law of the Latvian Republic on Income Tax on Population), Dec. 12, 1990, reprinted in Vedomosti Verkhovnogo Soveta i Pravitelstva Latviyskoy Respubliki 1991 № 1/2, item 7 [in Russian] (as amended to July 20, 1995) [English trans.].

    Law on the Property Tax, Dec. 18, 1990 [in English].

    Law on the Value Added Tax, Mar. 9, 1995 [in English].

    Izmeneniya v Zakone “O Naloge na Dobavlennuyu Stoimost” (Amendments to the Value Added Tax Law), May 10, 1996, Sreda, May 15, 1996 [in Russian].

    Law № 66 on Land Tax of Dec. 20, 1990 (as amended to 1993), Official Documents of the Supreme Soviet and the Council of Minister of the Republic of Latvia, June 4, 1993 [in Russian, English].

    Law № 352 on the insertion of Amendments into the Latvian Code of Civil Procedure relating to matters of recovery of tax delinquencies, Proceedings of the Supreme Soviet and Government of the Latvian Republic, Sept. 12, 1991, № 35/36 [in Russian].

    Law № 182 on Social Security Tax Amendments of Mar. 27, 1991, Proceedings of the Supreme Soviet and Government of the Latvian Republic, June 6, 1991, № 21/22 [in Russian].

    Laws Nos¯ 249 and 250 on Social Security Tax Amendments of May 28, 1991, Proceedings of the Supreme Soviet and Government of the Latvian Republic, Aug. 1, 1991, № 29/30 [in Russian].

    Izmeneniye v Zakone “O Sotsial’nom Naloge” (Amendments to Social Tax Law) June 21, 1996, Sreda, June 26, 1996 [in Russian].

    Law on Natural Resource Tax of Dec. 12, 1990 [in English] and Law Nos¯ 196 and 197 on Natural Resources Tax Amendments of Apr. 23, 1991, Proceedings of the Supreme Soviet and Government of the Latvian Republic, June 20, 1991, № 23/24 [in Russian].

    Izmenenie v Zakone o Lgotakh po Podokhodnomu Nalogu s Predpriyatiy dlya Predpriyatiy (predprinimatelskikh obshchestv) obshchestv invalidov, predpriyatiy (predprinimatelskikh obshchestv) Meditsinskogo Kharaktera, a takzhe dlya Predpriyatiy (predprinimatelskikh obshchestv) drugikh Blagatvoritelnykh Fondov v 1995, 1996 i 1997 godakh (Amendment to the Law on Tax Privileges for Charitable Institutions), Sept. 10, 1996 reprinted in V Saeyme i Kabinete Ministrov, Sept. 25, 1996 [in Russian].

    Law on Amendments to the Law of the Republic of Latvia on Foreign Investments in the Republic of Latvia, Mar. 2, 1995.

    Lebanon (LBN)

    In addition to income tax, Lebanon imposes inheritance and gift duty, payroll tax, built property tax, amusement tax, stamp duty, and tax on movable property gains.

    Income Tax, Legislative Decree № 144 of July 12, 1959, reprinted in TLW (as amended to 1991), and in Income Tax Law (Beirut, Bureau of Lebanese and Arab Documentation, P.O. Box 165403, Beirut, Lebanon) (as amended to Feb. 1995).

    Lesotho (LSO)

    ITA—Income Tax Order 1993, 38 Lesotho Government Gazette Extraordinary № 33, at 403, amended by Act № 2 of 1994, Income Tax (Amendment) Act 1994, 39 Lesotho Government Gazette Extraordinary № 54, at 552; Act № 10 of 1996, Income Tax (Amendment) Act, 1996, Sept. 20, 1996, 41 Lesotho Government Gazette Extraordinary № 88, at 1119.

    Sales Tax Act, 1995, 41 Lesotho Government Gazette Extraordinary 423 (Apr. 29, 1996).

    The Casino Act, № 26 of 1969; Legal Order № 42 of 1971; Casino Order № 4 of 1989 (impose gambling levy).

    Valuation and Rating Act 1980; Urban Government Act 1993; Legal Notice № 10 of 1997 (tax on urban real property).

    Proclamation № 20 of 1935 as amended (estate duty and succession duty).

    Transfer Duty Act, 1965, № 7 of 1966; Transfer Duty Order, № 1 of 1972.

    Customs and Excise Consolidated Act, № 10 of 1982.

    Trading Enterprise Order, 1993; Order № 11 of 1997 (trade licenses).

    Fuel and Service Control Act 1983, № 23 of 1983; Legal Notice № 63 of 1988 (petrol levy).

    Precious Stones Order 1970, № 24 of 1970 (diamond export tax).

    Proclamation 16/07 as amended; Stamp Duties (Amendment) Order № 20 of 1972; Legal Notice № 58 of 1988 (stamp duty).

    Toll Gate Act of 1976; Legal Notice №18 of 1988; Legal Notice № 1 of 1992 (tax on vehicles leaving Lesotho).

    Liberia (LBR)

    Revenue and Finance Law, Title 37 Liberian Code of Laws, reprinted in TLW (as amended to June 1991).

    Libya (LBY)

    In addition to the taxes listed below, a tax is imposed on gasoline, diesel, cigarettes, airline tickets, foreign currency transfers, and letters of credit.11

    The Income Tax Law, Law № 64 of 1973, reprinted in TLW [in English].

    Zakat (Charity Tax) Law, reprinted in TLW [in English].

    Entertainment Tax Law, reprinted in TLW [in English].

    Jihad Tax Law, reprinted in TLW [in English].

    Social Security Contributions Law, reprinted in TLW [in English].

    Stamp Duty Law № 65 of 1973.

    Lithuania (LTU)

    According to the law on the administration of taxes, the following 15 taxes apply in Lithuania: VAT, excise, individual income tax, tax on profits of legal persons, tax on immovable property of enterprises, land tax, tax on state natural resources, tax on oil and gas resources, tax on environmental pollution, consular fee, stamp duty, tax on places of commerce, surcharge on revenues from sales in accordance with law on road fund, tax on gifts and inheritances, and contributions for mandatory health insurance. We cite to the session laws (Vedomosti Litovskoy Respubliki). The laws are available (in Lithuanian) on the home page of the Parliament of Lithuania: http://www.lrs.lt or on GLIN.

    Zakon Litovskoy Respubliki ob Administrirovanii Nalogov (Law on Tax Administration), Law № I-974, June 28, 1995, Vedomosti Litovskoy Respubliki № 33, November 30, 1995 [in Russian], amended by

    • Zakon № I-1321 O Vnesenii Izmeneniy v Statyu 2 Zakona Litovskoy Respubliki “O Vvedenii v Deystviye Zakona Litovskoy Respubliki ob Administrirovanii Nalogov” (Amendments to Article 2 of the Law on Bringing into Force the Law on Administration of Taxes) Apr. 30, 1996, Vedomosti Litovskoy Respubliki № 19, July 10, 1996 [in Russian].

    • Zakon № I-1370 O Vnesenii Dopolneniya v Statyu 5 Zakona Litovskoy Respubliki ob Administrirovanii Nalogov (Law on Making Additions to Article 5 of the Law on Administration of Taxes) Vedomosti Litovskoy Respubliki 1995, № 33-580 Vedomosti № 21, July 31, 1996 [in Russian].

    • Zakon № I-1382 O Dopolnenii Zakona Litovskoy Respubliki ob Administrirovanii Nalogov Statey 26 (Addition of Article 26 to Law on Administration of Taxes), June 13, 1996, Vedomosti № 22, Aug. 10, 1996 [ in Russian].

    • Zakon № I-1416 O Vnesenii Izmeneiy v Stati 5, 8, 11, 17, 25, 50, 52, 55, 56 Zakona Litovskoy Respubliki ob Administrirovanii Nalogov (Amendment to Articles 5, 8, 11, 17, 25, 50, 52, 55, 56 of the Law on the Administration of Taxes), July 2, 1996, Vedomosti Litovskoy Respubliki № 28, Oct. 10, 1996 [in Russian].

    • Zakon № VIII-107 O Vnesenii Izmeneiy v Stati 25, 39, 49, 50, 52, 54, 55, 56 Zakona Litovskoy Respubliki ob Administrirovanii Nalogov I dopolnenii zakona statei 391 (Amendment to Articles 25, 39, 49, 50, 52, 54, 55, 56 of the Law on the Administration of Taxes and Addition of Article 391), Feb. 13, 1997, Vedomosti Litovskoy Respubliki № 17, June 20, 1997 [in Russian].

    • Zakon № VIII-146 O Vnesenii Izmeneiy v Stati 49 i 50 Zakona Litovskoy Respubliki ob Administrirovanii Nalogov (Amendment to Articles 49 and 50 of the Law on the Administration of Taxes), Mar. 13, 1997, Vedomosti Litovskoy Respubliki № 17, June 20, 1997 [in Russian].

    • Zakon № VIII-164 O Vnesenii Izmeneiy v Statyu 261 Zakona Litovskoy Respubliki ob Administrirovanii Nalogov (Amendment to Article 261 of the Law on the Administration of Taxes), Mar. 27, 1997, Vedomosti Litovskoy Respubliki № 17, June 20, 1997 [in Russian].

    Law on State Tax Inspectorate of June 26, 1990, reprinted in CEEL [in English].

    Zakon № I-1365 O Mestnikh Sborakh (Law on Local Fees) June 6, 1996, Vedomosti № 21, July 31, 1996 [in Russian].

    Law on Excise Taxes of May 1, 1994 [in English], amended by

    • Postanovleniye № 158 O Chastichnom Izmenenii Postanovleniya Pravitelstva Litovskoy Respubliki ot 25 Aprelya 1994 g. № 302 “Ob Aktsizakh” (Amendments to the Decree on Excises), Jan. 31, 1996, Vedomosti Litovskoy Respubliki № 10, Apr. 10, 1996 [in Russian].

    • Postanovleniye № 582 Pravitelstva O Chastichnom Izmenenii Postanovleniya Pravitelstva Litovskoy Respubliki ot 25 Aprelya 1994 g. № 302 “Ob Aktsizakh” (Amendments of Decree on Excises), May 17, 1996, Vedomosti № 17, June 20, 1996 [in Russian].

    • Zakon № I-1307 O Vnesenii Izmeneniy v Statyi 81,82,9 Zakona Litovskoy Respubliki ob Aktsizakh (Amendments to Excise Tax Law) Apr. 30, 1996, Vedomosti № 19, July 10, 1996 [in Russian].

    • Postanovleniye № 815 O Chastichnom Izmenenii Postanovleniya Pravitel’stva Litovskoy Respubliki ot 25 Aprelya 1994 g. № 302 “Ob Aktsizakh” (Amendments to Government Decree on Excises), July 10, 1996, Vedomosti № 25 Sept. 10, 1996 [in Russian].

    Law on Charity and Sponsorship, June 4, 1993, reprinted in Lithuania. Seimas. Parliamentary Record, 1993 [in English].

    Zakon № I-1320 O Vnesenii Izmeneniy v Zakon Litovskoy Respubliki o Naloge s Imushchestva, Perekhodyashchego v Poryadke Nasleldovaniya ili Dareniya (Amendments to the Law on the Tax on Property Transferred by Gift or Inheritance), Apr. 30, 1996, Vedomosti № 19, July 10, 1996 [in Russian].

    Zakon № I-1394 O Vnesenii Izmeneniy v Statyu 11 Zakona Litovskoy Respubliki o Naloge s Imushchestva, Prekhodyashchego v Poryadke Nasledovaniya ili Dareniya (Amendments to Law on Tax on Property Transferred by Gift or Inheritance), June 20, 1996, Vedomosti № 22 Apr. 10, 1996 [in Russian].

    Provisional Law on Income Tax of Natural Persons, № I-644, Oct. 9, 1990 (as amended to May 16, 1995) [in English].

    • Zakon O Vnesenii Izmeneniy i Dopolneniy vo Vremenniy Zakon Litovskoy Respubliki o Podokhodnom Naloge s Fizicheskikh Lits (Law of the Lithuanian Republic on Amendments and Additions to the Provisional Law of the Lithuanian Republic on Income Tax of Natural Persons), July 13, 1993, reprinted in Ekho Litvy, July 30, 1993 [in Russian].

    • Zakon № I-1184 O Vnesenii Izmeneniy i Dopolneniy vo Vremenniy Zakon Litovskoy Respubliki o Podokhodnom Naloge s Fizicheskikh Lits (Amendments to Individual Income Tax Law), Jan. 23, 1996, Vedomosti № 11, Apr. 20, 1996 [in Russian].

    • Zakon № I-1265 O Lgotakh po Podokhodnomu Nalogu s Fizicheskikh Lits Proizvodyashchim Selskokhozyaystvennuyu Produktsiyu i Predostavlyayushchim Uslugi Selskomu Khozyaystvu Khozyaystvennim Tovarishchestvam i Individualnim (Lichnim) Predpriyatiyatm (Law on Individual Income Tax Exemptions for Farm Producers), Apr. 2, 1996, Vedomosti № 13, May 10, 1996 [in Russian].

    • Zakon № I-1309 O Vnesenii Izmeneniy v Stati Vremennogo Zakona Litovskoy Respubliki o Podokhodnom Naloge s Fizicheskikh Lits (Individual Income Tax Law Amendments), Apr. 30, 1996, Vedomosti № 19, July 1996 [in Russian].

    • Zakon № I-1400 O Vnesenii Izmeneniy I Dopolneniy v Stati 7, 15, 16, 24, 35 Vremennogo Zakona Litovskoy Respubliki o Podokhodnom Naloge s Fizicheskikh Lits (Individual Income Tax Law Amendments), June 25, 1996, Vedomosti № 30, Oct. 31, 1996 [in Russian].

    • Zakon № I-1461 O Vnesenii Izmeneniy v Statyu 7 Vremennogo Zakona Litovskoy Respubliki o Podokhodnom Naloge s Fizicheskikh Lits (Individual Income Tax Law Amendments), July 10, 1996, Vedomosti № 30, Oct. 31, 1996 [in Russian].

    • Zakon № I-1483 O Vnesenii Izmeneniy v Statyu 24 Vremennogo Zakona Litovskoy Respubliki o Podokhodnom Naloge s Fizicheskikh Lits (Individual Income Tax Law Amendments), July 11, 1996, Vedomosti № 29, Oct. 19, 1996 [in Russian].

    Zakon № I-1338 O Deklarirovanii Imushchestva i Dokhodov Naseleniya (Law on Declaration of Property and Incomes of the Population), May 16, 1996, Vedomosti № 18, June 28, 1996 [in Russian].

    Law on Taxes on Profits of Legal Persons, № I-442, July 31, 1990 (as amended to Apr. 11, 1995) [in English].

    • Zakon № I-1516 O Vnesenii Dopolneniy v Stati 5,6 i 8 Zakona Litovskoy Respubliki o Naloge na Pribil yuridicheskikh Lits (Corporate Income Tax Amendments), June 27, 1991, June 20, 1991, Vedomosti № 20, July 20, 1991 [in Russian].

    • Izmeneniya v Zakone O Podokhodnom Naloge s Predpriyatiy (Amendments to Enterprise Income Tax), Mar. 13, 1996, Sazitie, Mar. 20, 1996 [in Russian].

    • Zakon № I-1266 O Lgotakh po Nalogu na Pribyl Selskokhozyaystvennym Predpriyatiyam (Law on Exemption of Agricultural Enterprises from Profit Tax), Apr. 2, 1996, Vedomosti № 13, May 10, 1996 [in Russian]

    • Zakon № I-399 O Vnesenii Izmeneniy i Dopolneniy v Stati 1,3, 5, 6, 7, 8 Zakona Litovskoy Respubliki o Naloge na Pribyl Yuridicheskikh Lits (Amendment to Articles 1, 3, 5, 6, 7, 8 of the Law on Taxes on Profits of Legal Persons), June 25, 1996, Vedomosti № 29, Oct. 19, 1996 [in Russian].

    • Zakon № I-1310 O Vnesenii Izmeneniy v Stati 14, 15, 16 Zakona Litovskoy Respubliki o Naloge na Pribyl Yuridicheskikh Lits (Amendments to Law on Profit Tax for Legal Persons), Apr. 30, 1996, Vedomosti № 19, July 10, 1996 [in Russian].

    • Zakon № I-1426 O Vnesenii Izmeneniy i Dopolneniy v Stayu 3 Zakona Litovskoy Respubliki o Naloge na Pribyl Yuridicheskikh Lits (Amendment to Article 3 of the Law on Profit Tax for Legal Persons), July 2, 1996, Vedomosti № 29, Oct. 19, 1996 [in Russian].

    • Zakon № I-1460 O Vnesenii Izmeneniy i Dopolneniy v Stati 3, 5, 6 Zakona Litovskoy Respubliki o Naloge na Pribyl Yuridicheskikh Lits (Amendments to Articles 3, 5, 6 of the Law on Profit Tax for Legal Persons), July 10, 1996, Vedomosti № 29, Oct. 19, 1996 [in Russian].

    Law № I-345 on Value-Added Tax, Dec. 22, 1993, as amended on Oct. 1994 and Jan. 1995 [in English].

    • Zakon № I-1185 O Vnesenii Izmeneniy i Dopolneniy v Zakon Litovskoy Respubliki o Naloge na Dobavlennuyu Stoimost (Law on VAT Amendments), Jan. 23, 1996, Vedmosti Litovskoy Respubliki № 12, Apr. 30, 1996 [in Russian].

    • Zakon № I-1339 O Vnesenii Izmeneniy v Statyu 38 Zakona Litovskoy Respubliki o Naloge na Dobavlennuyu Stoimost (Amendments to Article 38 of VAT Law), May 16, 1996, Vedomosti Litovskoy Respubliki № 17, June 20, 1996 [in Russian].

    • Zakon № I-1346 O Vnesenii Izmeneniy v Statyu 38 Zakona Litovskoy Respubliki o Naloge na Dobavlennuyu Stoimost (Amendments to Article 38 of VAT Law), May 21, 1996, Vedomosti Litovskoy Respubliki № 17, June 20, 1996 in Russian].

    • Zakon № I-11402 O Vnesenii Izmeneniy v Statyu 23 Zakona Litovskoy Respubliki o Naloge na Dobavlennyu Stoimost (Amendments to Article 23 of VAT Law), June 25, 1996, Vedomosti Litovskoy Respubliki № 29, Oct. 19, 1996 [in Russian].

    • Zakon № I-1308 O Vnesenii Izmeneniy v Stati 35 i 36 Zakona Litovskoy Respubliki o Naloge na Dobavlennuyu Stoimost’ (Amendments to Articles 35 and 36 of VAT Law), Apr. 30, 1996, Vedomosti № 19, July 10, 1996 [in Russian].

    Law № I-565 on the Tax Imposed on Immovable Property of Enterprises and Organizations, July 20, 1994 [in English].

    • Zakon № I-1311 O Vnesenii Izmeneniy v Stati 7 i 9 Zakona Litovskoy Respubliki o Naloge na Nedvizhimoye Imushchestvo Predpriyatiy i Organizatsiy (Amendments to Articles 7 and 9 of Law on Tax on Immovable Property of Enterprises and Organizations), Apr. 30, 1996, Vedomosti № 19, July 10, 1996 [in Russian].

    • Zakon № I-1436 O Vnesenii Izmeneniy v Stati 1, 2, 3, 4, 5, i 11 Zakona Litovskoy Respubliki o Naloge na Nedvizhimoye Imushchestvo Predpriyatiy i Organizatsiy (Amendments to Articles 1, 2, 3, 4, 5, and 11 of Law on Tax on Immovable Property of Enterprises and Organizations), July 4, 1996, Vedomosti № 29, Oct. 19, 1996 [in Russian].

    Law on Land Tax, Valstybes Zinios, 1992, № 21-612, amended by Law № I-992, Valstybes Zinios, July 19, 1995 [in Lithuanian] [available on website].

    Zakon № I-1312 O Vnesenii Izmeneniy v Stati 12 i 13 Zakona Litovskoy Respubliki o Zemel’nom Naloge (Amendments to Articles 12 and 13 of Law on Land Tax), Apr. 30, 1996, Vedomosti № 19, July 10, 1996 [in Russian].

    Zakon № I-1163 O Nalogakh na Gosudarstvennye Prirodnye Resursy (Law on Taxes on State Natural Resources), Mar. 31, 1991, Vedomosti № 11, Apr. 11, 1991 [in Russian].

    • Zakon № I-1313 O Vnesenii Izmeneniy v Stati 7, 9, 10 Zakona Litovskoy Respubliki o Nalogakh na Gosudarstvennye Priorodnye Resursy (Amendments to Article 7, 9, and 10 of Law on Taxes on State Natural Resources), Apr. 30, 1996, Vedomosti № 19, July 10, 1996 [in Russian].

    Zakon № I-1314 O Vnesenii Izmeneniy v Stati 5, 8, 9, 12 Zakona Litovskoy Respubliki o Naloge na Resursy Nefti i Gaza (Amendments to Articles 5, 8, 9 and 12 of Law on Tax on Oil and Gas), Apr. 30, 1996, Vedomosti № 19, July 10, 1996 [in Russian].

    Zakon № I-1205 O Nalogakh Za Zagryaznenie Okruzhayushchey Sredy (Law on Taxes on Environmental Pollution), Apr. 9, 1991, Vedomosti № 12, Apr. 30, 1991 [in Russian].

    • Zakon № I-1315 O Vnesenii Izmeneniy v Zakon Litovskoy Respubliki o Nalogakh za Zagryazneniye Okruzhayushchey Sredy (Amendments to Law on Taxes on Pollution of the Environment) Apr. 30, 1996, Vedomosti № 19, July 10, 1996 [in Russian].

    Zakon o Gosudarstvennom Sotsialnom Strakhovanie (Law on State Social Insurance), Vedomosti № 17, June 20, 1991 [in Russian].

    Zakon № I-1319 O Vnesenii Izmeneniy v Statyu 2 Zakona Litovskoy Respubliki o Dorozhnom Fonde (Law on Amendments to Law on the Road Fund), Apr. 30, 1996, Vedomosti Litovskoy Respubliki № 19, July 10, 1996 [in Russian].

    Zakon № I-1318 O Vnesenii Izmeneniy v Stati 7 i 10 Zakona Litovskoy Respubliki o Naloge na Mesta Torgovli (Amendments to Law on Tax on the Place of Trading), Apr. 30, 1996, Vedomosti Litovskoy Respubliki № 19, July 10, 1996 [in Russian].

    Law on Stamp Tax, Valstybes Zinios, 1994, № 51-950, № 89-1712; 1995, № 47-1135; 1996, № 18-462, № 46-1112, № 116-2691; 1997, № 33-810 [available on website] [in Lithuanian].

    Law on Alcohol Control, Valstybes Zinios, 1995, № 44-1073, № 61-1527; 1996, № 8-195, № 53-1247; 1997, № 33-809 [available on website] [in Lithuanian].

    Luxembourg (LUX)

    In addition to income tax, Luxembourg imposes inheritance and gift duty, payroll tax, real property transfer tax, capital tax, tax on betting on sporting events, tax on lotto, wealth tax, estate duty, value-added tax, excise duty on mineral oils, excise tax on road fuel, excise duty on manufactured tobacco, excise duty and consumption tax on ethyl alcohol, excise duty on wines and other nonsparkling and sparkling fermented beverages, excise duty on beer, fire service tax, tax on land and buildings, stamp duty, mortgage tax, tax on motor vehicles, trade tax, tax on licensed premises, entertainment tax, tax on gross proceeds from casino gambling, excise duties on intermediate products. References to the laws imposing these taxes are found in EU Inventory.

    Income Tax Law of Dec. 4, 1967, reprinted in TLW (as amended to Dec. 24, 1996) [in English].

    Macedonia, former Yugoslav Republic of (MKD)

    Citations to Sluzben vesnik na Republika Makedonija (Official Gazette of the Republic of Macedonia (SVRM)) and to Sluzben vesnik na Sociajalisticka Republika Makedonija (Official Gazette of the Socialist Republic of Macedonia (SVSRM)) are taken from IBFD, Macedonia, in Taxation and Investment in Central and East European Countries (Dec. 1996, supp.).

    Law on the Personal Income Tax, Ministry of Finance, updated to Dec. 30, 1993 [in English], SVRM № 80/1993, amended by SVRM № 70/1994.

    Law on Property Tax, Ministry of Finance, as updated to Dec. 30, 1993 [in English], SVRM № 80/1993.

    Law on Profit Tax, Ministry of Finance, as updated to Dec. 30, 1993 [in English], SVRM № 90/1993, amended by SVRM № 43/1995.

    Sales Taxes on Products and Services Law, SVRM № 34/1992, amended by SVRM № 62/1992, № 3/1991, № 4/1993, № 80/1993, and № 42/1992.

    Amendments to the Sales Tax Law, Jan. 16, 1996 [in Macedonian] available on Microfiche and from the Tax Analysts’ Access Service/TaxBase.

    Law on the Temporary Lodgings Tax, Apr. 1996 [in Macedonian] available on Microfiche and from the Tax Analysts’ Access Service/TaxBase.

    Excise Tax Law, SVRM № 78/1993, amended by SVRM № 42/1995.

    Public Revenue Office Law, SVRM № 80/1993.

    Taxes Imposed on Foreigners Law, SVRM № 4/1993.

    Taxes on Transfer of Property, Copyrights and Other Rights Law, SVSRM № 40/1984, amended by SVSRM № 51/1988, № 29/1989, and SVRM № 4/ 1993.

    Madagascar (MGD)

    Code Général des Impôts (General Tax Code), reprinted in Code Général des Impôts (Imprimerie d’Ouvrage Educatifs 1986) (as amended to 1986) [in French].

    Law № 91-020, Aug. 12, 1991, to institute a regime of industrial free zones, Journal oficiel, Aug. 13, 1991.

    Malawi (MWI)

    In addition to those listed below, real estate transfer duty and fringe benefits tax apply. Laws of Malawi is a 10-volume loose-leaf service issued by the government printer.

    IT A—An Act to Provide for the Taxation of Income and for Purposes Ancillary Thereto, ch. 41:02 of the Laws, reprinted in TLW (as amended to June 1992) amended by

    • Act № 1 of 1995, Taxation (Amendment) Act, 1995, Malawi Gazette Supplement, Apr. 1, 1995.

    • Act № 2 of 1996, Taxation (Amendment) Act, 1996, Malawi Gazette Supplement, Mar. 22, 1996.

    • Act № 5 of 1997, Taxation (Amendment) Act, 1997, Malawi Gazette Supplement, Apr. 1997.

    Customs and Excise Act, Laws of Malawi, ch. 42:01 (rev. 1974).

    Tobacco Cess Act, id., ch. 42:02 (rev. 1968).

    Tea Cess Act, id., ch. 42:03 (rev. 1981).

    Hides and Skins (Cess) Act, id., ch. 42:04 (rev. 1968).

    Stamp Duties Act, id., ch. 43:01 (rev. 1986).

    Estate Duty Act, id., ch. 43:02 (rev. 1970), amended by Estate Duty (Amendment) Act, 1997.

    Malaysia (MYS)

    Besides those listed below, contractors’ levy, stamp duty, film-hire duty, and excise are imposed.

    ITA—Income Tax Act, 1967, reprinted in TLW (as amended to Finance Act 1997).

    Service Tax Act № 151 of 1975, reprinted in Laws of Malaysia.

    Promotion of Investments Act of 1986.

    Excise Tax Act № 176 Official Gazette (P.U.) of June 24, 1976, reprinted in Laws of Malaysia.

    Sales Tax Act № 64 of 1972, as amended to July 1987, Official Gazette (P.U.) (B) 72/72, reprinted in International Law Book Services, ed. (1987).

    Petroleum Income Tax Act 1967.

    Maldives (MDV)

    The Maldives has no general income tax, although there is a tax on bank profits. There are customs duties, an airport departure tax, a tourism (bed) tax, stamp duty (on registration of mortagages), and company registration fee.

    Mali (MLI)

    We cite to a compilation published by Cabinet SEAG Conseil (address: B.P. 18, Bamako; tel./fax: 230672).

    Code général des impôts (General Tax Code), reprinted in Code général des impôts (Cabinet SEAG Conseil) (as amended to Dec. 31, 1995) [in French].

    Malta (MLT)

    Act № LIV of 1948, Income Tax Act, reprinted in Income Tax Act, Cap. 123 (as amended to 1994), Ippubblikat mid-Dipartiment ta’ 1-Informazzjoni—Kastilja (Department of Information) [in Maltese], reprinted in TLW (as amended through Aug. 20 1996) [in English].

    Act № XXII of 1995 to amend the Income Tax Act, Cap. 123, July 24, 1995, Ippubblikat mid-Dipartiment ta’ 1-Informazzjoni—Kastilja (Department of Information) [in Maltese].

    Act № XVIII of 1994, Income Tax Management, Sept. 13, 1994, Ippubblikat mid-Dipartiment ta’ l-Informazzjoni—Kastilja (Department of Information) [in Maltese], available on TaxBase [in English], reprinted in TLW (as amended through July 28, 1995) [in English].

    Act № XVII Income Tax of 1994, Income Tax (Amendment) (№ 2) Act, 1994, Sept. 13, 1994 [in English].

    Act № XVII Duty on Documents and Transfers Act, 1993, Ippubblikat mid-Dipartiment ta’ 1-Informazzjoni—Kastilja (Department of Information) [in Maltese, English], available on TaxBase.

    Act № XVI of 1994 Duty on Documents and Transfers (Amendment) Act, 1994 to regulate the collection of income tax and to provide the administrative machinery for such collection, Sept. 13, 1994 [in English], available on TaxBase.

    Act № XIII of 1994 Malta Financial Services Centre Act, 1994, available on TaxBase [in English].

    Act № XII of 1997, Customs and Excise Tax Act, 1997, reprinted in TLW.

    Marshall Islands (MHL)

    Citations are to the official code of the Marshall Islands (Marshall Islands Revised Code (1988) [hereinafter MIRC]).

    Income Tax Act 1989, MIRC, Title 11, ch. 1A (rev. 1992).

    Firearms Control Tax Act 1978, MIRC, Title 11, ch. 2.

    Import Duties Act, MIRC, Title 11, ch. 5A (rev. 1992).

    Tax Collection Act, MIRC, Title 11, ch. 7 (rev. 1989).

    Financial Management Act 1990, MIRC, Title 11, ch. 8A (rev. 1992).

    Mauritania (MRT)

    Code Général des Impôts (General Tax Code), reprinted in Mauritania, Ministère des Finances, Loi de Finances, 1990 [in French], amended by Ordinance № 91-06, Apr. 22, 1991, Journal officiel, May 15, 1991.

    Mauritius (MUS)

    Act № 16 of 1995 on Income Tax, Aug. 3, 1995, Legal Supplement to Government Gazette of Mauritius, Aug. 12, 1995, reprinted in TLW (as amended through July 1, 1997), also available on TaxBase.

    Act № 9 of 1997, Finance Act 1997, July 28, 1997 reprinted in TLW.

    Mexico (MEX)

    We cite to Legislatión Fiscal, an annual two-volume loose-leaf compilation of the tax laws by the Ministry of Finance (in Spanish); the IBFD CD; Tax Laws of the World, and TaxBase. CCH publishes Mexican tax and related legislation, as well as explanatory guides, in English. Tax Analysts includes the Mexican tax legislation in its North American OneDisc (CD) (cited as Tax Analysts OneDisc); Ediciones Andrade, Colime № 213, Col. Roma, 06700 Mexico, D.F., Mexico (fax: 511-7047) publishes tax as well as other legal material.

    Ley del Impuesto sobre la Renta 1997(Income Tax Law), reprinted in Secretaria de Hacienda y Crédito Público, Legislación Fiscal, also reprinted in IBFD-CIAT [in Spanish] and in Tax Analysts OneDisc [in Spanish and English].

    Código Fiscal de la Federación 1997 (Federal Tax Code), reprinted in TLW, Legislación Fiscal, supra, and in IBFD-CIAT [in Spanish] and in Tax Analysts OneDisc [in Spanish and English].

    Ley del Servicio de Administración Tributaria, reprinted in Legislación Fiscal, supra, and in Tax Analysts OneDisc [in Spanish and English].

    Ley Orgánica del Tribunal Fiscal de la Federación, reprinted in Legislación Fiscal, supra, and in Tax Analysts OneDisc [in Spanish and English].

    Ley del Impuesto al Activo (Assets Tax Law), Diario Oficial (hereinafter D.O.), Dec. 31, 1988, Ca 5, art. 10 de la ley que establece, reforma, adiciona y deroga diversas disposiciones fiscales, vigente a partir del 1° de enero 1989, reprinted in Legislación Fiscal, supra, TLW (as amended through Dec. 31, 1996), and in Tax Analysts OneDisc [in Spanish and English].

    Ley del Impuesto al Valor Agregado 1997 (Value Added Tax Law), reprinted in IBFD-CIAT [in Spanish], reprinted in Legislación Fiscal, supra, and in Tax Analysts OneDisc [in Spanish and English]; also reprinted in TLW (as amended to Apr. 24, 1997) [in English].

    Ley del Impuesto Especial sobre Producción y Servicios (Special Tax on Production and Services Law (excise tax)), reprinted in Legislación Fiscal, supra, and in Tax Analysts OneDisc [in Spanish and English].

    Ley del Impuesto Sobre Tenencia o Uso de Vehiculos (Law on Tax on Ownership or Use of Vehicles), id.

    Ley de Contribución de Mejoras por Obras Públicas Federales de lnfraestructura Hidráulica, (Special Assessment Taxes on Federal Public Works Relating to Water Infrastructure), id.

    Ley del Impuesto Sobre Automóviles Nuevos (Tax on New Automobiles), Dec. 30, 1996, available on TaxBase [in Spanish].

    General Import Tax Law, Dec. 18, 1995, available on Microfiche and from the Tax Analysts’ Access Service/TaxBase [in Spanish].

    General Export Tax Law, Dec. 22, 1995, available on Microfiche and from the Tax Analysts’ Access Service/TaxBase [in Spanish].

    Social Security Law, published in D. O., Dec. 21, 1995, reprinted in TLW [in English].

    Micronesia, Federated States of (FSM)

    Federated States of Micronesia Income Tax Law, Federated States of Micronesia Code Annotated, Title 54, ch. 1 (Pacific Island Planning Consultants: Kolonia, Pohnpei 1995, with 1996 annual update).

    Import and Export Taxes, id., Title 54, ch. 2.

    Revenue and Administration, id. Title 54, chs. 8, 9.

    Moldova (MDA)

    The following national taxes are in effect in Moldova: VAT, enterprise income tax, excise, privatization tax, tax on incomes of banks, securities transaction tax, insurance income tax, state duty, and customs. In addition, there are numerous local taxes. The Parliament has under consideration legislation that would reform and consolidate the legislation in a tax code. See Nikolai Golovchenko, Nalogi Moldovi: sevodnia i zavtra (Taxes of Moldova: Today and Tomorrow), Nezavisimaya Moldova, May 7, 1997.

    Zakon Respubliki Moldova o Podokhodnom Naloge s Fizicheskikh Lits (Law of the Republic of Moldova on Income Tax on Natural Persons), Dec. 3, 1992, reprinted in Nezavisimaya Moldova, Mar. 10, 1993 [in Russian], and in FBIS-USR-93-062, May 14, 1993, at 96-100 [in English].

    Zakon Respubliki Moldova ob Osnovakh Nalogovoy Sistemy (Law of the Republic of Moldova on the Foundation of the Tax System), Nov. 17, 1992, reprinted in Nezavisimaya Moldova, Dec. 24, 1992 [in Russian].

    Law № 968-XIII of July 24, 1996, amending several legislative acts, Monitorul Oficial, item № 681, Oct. 31, 1996 [Russian edition] (amends law on foundation of the tax system).

    Zakon Respubliki Moldova O Gosudarstvennoy Nalogovoy Sluzhbe (Law of the Republic of Moldova on State Tax Service), Jan. 22, 1992, № 876-XII [in Russian], amended by Zakon 367 o Vnesenii izmeneniy i Dopolneniy v Nekotorye Zakonodatelnye Akty, Statya IX, Monitorul Oficial Al Republicii № 40-41, June 20, 1996 [in Russian].

    Zakon o Vnesenii Izmeneniy v Zakon o Gosudarstvennoy Nalogovoy Sluzhbe i v Zakon ob Osnovakh Nalogovoy Sistemy (Amendment to the Law on the Tax Service and to the Law on the Foundation of the Tax System), Feb. 6, 1997, Monitorul Oficial Al Republicii № 15, Mar. 6, 1997, item № 160 [in Russian].

    Zakon Respubliki Moldova o Naloge na Pribyl’ Predpriyatiy (Law of the Republic of Moldova on Income Tax of Enterprises), Dec. 2, 1992, № 1214-XII, reprinted in Nezavisimaya Moldova, Jan. 23, 1993 [in Russian], and in Law on Taxes on Business, Associations and Organizations (1992) [in English].

    Law on Banks and Other Credit Institutions Profit Tax (Bank Income Tax Law) of June 1995 [in English], amended by Zakon № 850-XIII o Vensenii Dopolneniya v Statyu 5 Zakona o Nalogooblozhenii Pribyli Bankov i Drugikh Kreditnykh Uchrezhdeniy (Amendment to the Law on Banks and Other Credit Institutions Profit Tax), May 29, 1996, Monitorul Oficial Al Republicii № 40-41, June 20, 1996 [in Russian].

    Law on Tax on Securities Transactions, May 10, 1993, reprinted in Nezavisimaya Gazeta, July 17, 1993 [in Russian], and in FBIS-USR-93-113, Aug. 30, 1993, at 78-79 [in English].

    Zakon № 802-XIII o Vnesenii Izmeneniy i Dopolneniy V Zakon o Naloge na Operatsii c Tsennymi Bumagami (Amendment to the Law on Tax on Securities Transactions), Apr. 5, 1996, Monitorul Oficial Al Republicii № 28, May 9, 1996 [in Russian].

    Law on the Land Tax and the Taxation Procedure, Dec. 22, 1992, reprinted in Nezavisimaya Moldova, Mar. 16, 1993 [in Russian], and in FBIS-USR-93-062, May 14, 1993, at 100-102 [in English].

    Zakon o Naloge na Dobavlennuyu Stoimost’ (Law on Value-Added Tax) (as amended through Dec. 5, 1995 by Law № 675-XIII) [in Russian].

    Zakon № 633-XII o Poryadke Vzyskaniya Nalogov, Sborov i Drugick Platezhey v Byudzhet i vo Bnebyudzhetnye Fondy, ne Vnesennykh v Ustanovlenye Sroki (Law № 633-XII on the procedure for the imposition of duties, taxes and other payments to the budget and to nonbudgetary funds not paid on time), Nov. 10, 1995, Monitorul Oficial Al Republicii, № 8-9, Feb. 8, 1996 [in Russian].

    Zakon № 869-XIII o Vensenii Izmeneniy i Dopolneniy v Zakon o Poryadke Vzyckaniya Nalogov, Sborov i Drugikh Platezhey v Byudzhet i vo Bnebyudzhetnye Fondy, ne Vnesennykh v Ustanovlenye Sroki (Amendments and Additions to the Law on the Procedure for the imposition of duties, taxes, and other payments to the budget and to nonbudgetary funds not paid on time), June 7, 1996, Monitorul Oficial Al Republicii № 46-47, July 11, 1996 [in Russian].

    Zakon № 78-XIII o Vnesenii Izmeneniy i Dopolneniy v Nekotorye Zakonodatelnye Akty, Staya XIII, v Zakon o Gosudarstvennoy Poshline № 1216-XII ot 3 Dekabrya 1992 goda (Amendment to the Law on State Fees of Dec. 3, 1992), Monitorul Oficial Al Republicii № 40-41, June 20, 1996 [in Russian].

    Zakon № 736-XIII o Vnesenii Izmeneniy i Dopolneniy v Statyu 8 Zakona o Zemelnom Naloge i Poryadke Nalogooblozheniya (Amendment to Article 8 of the Law on Real Estate Tax), Feb. 20, 1996, Monitorul Oficial Al Republicii № 17-18, Mar. 21, 1996 [in Russian].

    Zakon № 744-XIII o Vnesenii Dopolneniy v Statyu 4 Zakona o Gosudarstvennoy Poshline (Addition to Article 4 of the Law on State Fees), Feb. 20, 1996, Monitorul Oficial Al Republicii № 16, Mar. 14, 1996 [in Russian].

    Zakon № 691 -XIII o Byudzhete Gosudarstvennogo Sozialnogo Strakhovaniya na 1996 God, Tarify Vznosov na Obyazatelnoe Gosudarstvennoe Sozialnoe Strakhovanie na 1996 God i Racpredelenie Poluchennyck Sredstv (Law on the State Social Security Budget for 1996, Rate for the Mandatory Social Security Dues), Dec. 19, 1995, Monitorul Oficial Al Republicii № 4, Jan. 18, 1996 [in Russian].

    Zakon № 926-XIII o Vnesenii Izmeneniya i Dopolneniya v Prilozhenie k Zakony o Byudzhete Gosudarstvennogo Sotsialnogo Strakhovaniya na 1996 God (Amendment to the Law on the State Social Security Budget for 1996) July 12, 1996, Monitorul Oficial Al Republicii № 56, Aug. 22, 1996 [in Russian].

    Postanovlenie Parlamenta № 402 o Kontseptsii Nalogovoi Reforme (Resolution of Parliament on the concept of tax reform), Apr. 24, 1997, Monitorul Oficial, № 46-47, July 17, 1997 [in Russian].

    Mongolia (MNG)

    General Law of Taxation, Nov. 23, 1992 (as amended through 1997) (unpublished) [in English].

    Personal Income Tax Law, Nov. 23, 1992 (as amended through 1997) (unpublished) [in English].

    Income Tax Law on Self-Employed Persons Whose Income Is Impossible to Define, 1993, reprinted in Ministry of Finance [in English].

    BEIT—Business Entity and Organization Income Tax Law, Dec. 14, 1992 (as amended through 1997) (unpublished) [in English].

    Transport Facilities and Vehicles Tax Law, Dec. 1, 1992, reprinted in Ministry of Finance (as amended through June 1996) [in English].

    Hunter’s Gun Tax Law, May 11, 1993, reprinted in Ministry of Finance (as amended through June 1996) [in English].

    Sales Tax Law, reprinted in Ministry of Finance (as amended through June 1996) [in English].

    Excise Tax Law, Jan. 21, 1993 (as amended through the law of Apr. 11, 1997) (unpublished) [in English].

    Law of Mongolia Concerning Tax Assessments, Auditing of Tax Payments, and Tax Collections, 1996, reprinted in Ministry of Finance [in English].

    Law of Mongolia on State Stamp Duties, July 15, 1993, reprinted in Ministry of Justice of Mongolia, Commercial Laws of Mongolia (Brookers Limited, Wellington, New Zealand 1997) [in English].

    Morocco (MAR)

    Impôt sur les societés (Corporation Tax), B.O. № 3873, Jan. 21, 1987, reprinted in Morocco, Ministère des finances, Direction des impôts, Impôt sur les societés (SONIR 1987) [in French].

    Taxe sur la valeur ajoutée (Value Added Tax), B.O.№ 3818, Jan. 1, 1986, reprinted in Ministry of Finance Tax Office, Sales Tax Division, Taxe sur la Valeur Ajoutée (SONIR 1986) [in French].

    Mozambique (MDZ)

    Código dos Impostos sobre o Rendimento (Income Tax Code), reprinted in Direcção Nacional de Impostos e Auditoria, Ministério das Finanças, Código dos Impostos sobre o Rendimento (CEGRAF 1992) [in Portuguese].

    Decree № 43/96, Oct. 22, 1996, Actualização do código do imposto de consumo (Consumption tax code) [in Portuguese].

    Law № 3/87 of Jan. 19, 1987 (establishes fundamentals of tax system and delegates authority to Council of Ministers to establish taxes by decree), Boletim da repũblica, Suplemento, Jan. 30, 1987 [in Portuguese].

    Decree № 1/87 of Council of Ministers (establishing turnover tax code: Código do Imposto de Circulaçâo), Jan. 30, 1987, Boletim da Repũblica, Suplemento, Jan. 30, 1987 [in Portuguese], amended by

    • Decree 13/91, Boletim da Repũblica, June 19, 1991.

    • Decree 44/96, Boletim da Repũblica, Oct. 22, 1996.

    Decree № 2/87 of Council of Ministers (miscellaneous tax provisions), Jan. 30, 1987, Boletim da Repũblica, Suplemento, Jan. 30, 1987 [in Portuguese].

    Decree № 3/87 of Council of Ministers (establishing income tax code: Código do Impostos sobre o Rendimento), Jan. 30, 1987, Boletim da Repũblica, Suplemento, Jan. 30, 1987 [in Portuguese].

    Decree № 4/87 of Council of Ministers (establishing national reconstruction tax code: Código do Imposto de Reconstrução Nacional), Jan. 30, 1987, Boletim da República, Suplemento, Jan. 30, 1987 [in Portuguese].

    Decree № 30/90, tax on professionals, Boletim da República, Dec. 7, 1990 [in Portuguese].

    Decree № 18/87, alters the tax rates on low tension use of electricity, Boletim da República, July 20, 1987 [in Portuguese].

    Decree № 31/90, income taxation, Boletim da República, Dec. 7, 1990 [in Portuguese].

    Decree № 10/87, approves the scheme of incentives to be offered to national investors, Boletim da República, Jan. 30, 1987 [in Portuguese].

    Decree № 12/93, approves the Code of Tax Benefits, Boletim da República, July 21, 1993 [in Portuguese].

    Decree № 13/88, revaluation of fixed assets, Boletim da República, Nov. 11, 1988 [in Portuguese].

    Myanmar (MMR)

    In addition to income tax, commercial tax, payroll tax, natural resource royalty, stamp duty, property tax, land tax, and excise are imposed.

    Income Tax Act (India Act XI of 1922), reprinted in TLW (as amended to Mar. 1989) [in English].

    Namibia (NAM)

    Income Tax Act, № 24 of 1981, reprinted in Legiserve—Namibia—Legislation (Butterworths) (as amended through Aug. 8, 1996).

    Sales Tax Act, 1992, Act 5 of 1992, Government Gazette, № 386 (Apr. 4, 1992), amended by

    • Act 31 of 1992.

    • Sales Tax Amendment Act, 1993, Act 12 of 1993, Government Gazette, № 695, Aug. 24, 1993.

    • Sales Tax Amendment Act, 1994, Act 13 of 1994, Government Gazette, № 927, Sept. 23, 1994.

    Additional Sales Duties Act, 1993, Act 11 of 1993, Government Gazette, № 694, Aug. 23, 1993.

    Stamp Duties Act, 1993, Act 15 of 1993, Government Gazette, № 698, Aug. 25, 1993, amended by

    • Moratorium on the Payment of Stamp Duty or Transfer Duty in Respect of Rationalization Schemes Act, 1993, Act 13 of 1993, Government Gazette, № 696, Aug. 24, 1993.

    • Stamp Duties Amendment Act, 1994, Act 12 of 1994, Government Gazette, № 924, Sept. 22, 1994.

    Transfer Duty Act, 1993, Act 14 of 1993, Government Gazette, № 697, Aug. 25, 1993.

    Petroleum (Taxation) Act, 1991, Act 3 of 1991, Government Gazette, № 179, Apr. 10, 1991.

    Act № 9 of 1995, Export Processing Zones Act, 1995, Government Gazette, № 1069 (Apr. 1995).

    Nepal (NPL)

    The laws listed below are published in mimeo by Nepal Press Digest (Private) Ltd., Lazimpat, Katmandu. Citations are to the official gazette (Nepal Rajapatra, herein after N.R.).

    Income Tax Act, 1974, as amended through Act of June 24, 1993, 43 N.R. (Extraordinary).

    Value Added Tax Act, 1996, 45 N.R. № 49 (E) (March 20, 1996).

    Excise Act, 1958, as amended through Act of Apr. 20, 1992,41 N.R. № 73 (E).

    Land Tax Act, 1978, as amended through Act of Dec. 23, 1992, 42 N.R. № 51 (E).

    Wealth Tax Act, 1991, 40 N.R. № 58 (E) (Mar. 4, 1991).

    Vehicles Tax Act, 1974, as amended through Act of Dec. 13, 1990, 40 N.R. № 44 (E).

    Houses and Compounds Tax Act, 1963, as amended through Act of Apr. 2, 1974, 23 N.R. № 75 (E) (Apr. 2, 1974).

    Houses and Compounds Rent Tax Act, 1966, as amended through Act of Apr. 2, 1974, 23 N.R. № 75 (E) (Apr. 2, 1974).

    Netherlands (NLD)

    We cite to one of the available annual commercial compilations. In addition to those listed, the following taxes are imposed: excise duties on mineral oils, tobacco, wine, sparkling beverages, nonalcoholic beverages, beer, and spirits, tax on passenger cars and motor bicycles, fuel tax, “waterschappen” (public corporations responsible for drainage, dykes, roads, bridges, etc. in particular areas), levies, tax on dogs, tax on the pollution of surface waters, tax on noise pollution caused by civilian aircraft, tax on ground water, tax on stocks of petroleum products, tax on manure surplus, tax on the right of user, tax on building land, tax on public advertisements, tax on tourists, parking tax, duty on intermediate products. References to the laws imposing these taxes are found in EU Inventory.

    WIB—Wet op de Inkomstenbelasting 1964 (Individual Income Tax Law), Stb. 519, reprinted in Verzameling Nederlandse Belastingwetgeving 1995/96 (Koninklijke Vermande bv-Lelystad) (as amended to Jan. 1, 1995) [in Dutch].

    Wet op de Loonbelasting 1964 (Wage Tax Law), id.

    VpB—Wet op de Vennootschapsbelasting 1969 (Corporation Income Tax Law), id.

    Wet op de Dividendbelasting 1965 (Dividend Withholding Tax), Stb. 621, id.

    Wet op de Vermogensbelasting 1964 (Net Wealth Tax), Stb. 520, id.

    Successiewet 1956 (Inheritance Tax), id.

    Wet op de Belastingen van Rechtsverkeer 1970 (Legal Transfer Tax), Stb. 611, id.

    Wet op de Omzetbelasting 1968 (Turnover Tax), Stb. 329, id.

    Wet op de Belasting van Personenauto’s en Motorrijwielen 1992 (Motor Vehicle Tax), Stb. 709, id.

    Wet op de kansspelbelasting 1961 (Lottery Tax Law), Stb. 313, id.

    Gemeentewet 1992 (Municipal Law), Stb. 96, id.

    Algemene wet Bestuursrecht 1992 (General Law on Public Administration), Stb. 315, id.

    Algemene wet Inzake Rijksbelastingen 1959 (General Tax Code), Stb. 301, id.

    Wet Administratieve Rechtspraak Belastingzaken 1956 (Administrative Judicial Proceedings), Stb. 323, id.

    Invorderingswet 1990 (Tax Collection Law), Stb. 221, id.

    New Zealand (NZL)

    We cite to one of the available annual commercial compilations. In addition to the taxes listed below, stamp duty is imposed. In addition to the CCH publications cited below, Butterworths publishes a three-volume loose-leaf (Butterworths Taxation Library), which contains the text of the major tax laws.

    IT A—Income Tax Act, 1994, reprinted in Income Tax Legislation (Commerce Clearing House (CCH) New Zealand Limited 1996).

    Tax Administration Act 1994, reprinted in id.

    Taxation Review Authorities Act 1994, reprinted in id.

    Goods and Services Tax, reprinted in Goods and Services Tax Legislation (5th ed., CCH New Zealand Limited 1990) (as amended to Sept. 1, 1990).

    Act № 35 Estate and Gift Duties, Nov. 25, 1968, reprinted in Statutes of New Zealand, New Zealand Government, 1979. [Note: estate duty was repealed as of Dec. 17, 1993, but gift duty is still in effect.]

    Inland Revenue Department Act 1974.

    Nicaragua (NIC)

    We cite to the CD-ROM published by the IBFD (IBFD-CIAT) and Théodulo Báez Cortéz and Julio Francisco Báez Cartéz, Todo Sobre Impuestos en Nicaragua (1995) (TSIN), which is a compilation in Spanish of the national and municipal tax legislation of Nicaragua and a commentary thereon. TSIN sets forth the consolidated text of the laws and regulations as amended to August 1995.

    Decreto № 243, Ley Creadora de la Dirección General de Ingresos (Decree Establishing the General Directorate for Revenue), La Gaceta D.O. № 144 del 29 de junio de 1957, reprinted in TSIN.

    Decreto № 713 Legislación Tributaria Común (Common Tax Legislation), June 22, 1962, as amended to Jan. 1993, reprinted in TSIN and IBFD-CIAT [in Spanish].

    Decreto № 662, Impuesto sobra la Renta (Income Tax Law), Nov. 25, 1974, as amended to Sept. 1993, reprinted in IBFD-CIAT [in Spanish] and in TLW (as amended to May 15, 1997).

    Decreto № 1357, Ley para el Control de las Facturaciones (Law Governing Invoices), La Gaceta, D.O. № 280 del 13 de diciembre de 1983, reprinted in TSIN.

    Decreto № 55-92, Exclusividad de Competencia en lo Tributario, La Gaceta, D.O., № 188, Oct. 1, 1992, reprinted in id.

    Decreto № 32-90, Exoneraciones Fiscales las Autoriza el Ministerio de Finanzas, la Gaceta, D.O., № 149, Aug. 1990, reprinted in id.

    Decreto № 4-93, Eliminación de Exenciones y Exoneraciones Tributarias, La Gaceta, D.O., № 7, Jan. 11, 1993, reprinted in id.

    Decreto№ 20-94, Publicación de Decretos y Disposiciones de Caracter Fiscal, La Gaceta, D.O., № 113, June 17, 1994, reprinted in id.

    Decreto № 850, Ley Creadora Registro Unico del Ministerio de Finanzas, La Gaceta, D.O., № 246, Oct. 30, 1981, reprinted in id.

    Decreto № 41-91, Sanciones y cierre de negocios por actos vinculados con la evasion tributaria, La Gaceta, D.O., № 182, Sept. 30, 1991, reprinted in id.

    Decreto № 1369, Ley del Recibo Fiscal (Law Governing Receipt for Taxes), La Gaceta, D.O., № 286, Dec. 21, 1983, reprinted in id.

    Decreto № 839, Reformas a la Ley del Delito de Defraudación Fiscal (Decree Reforming the Law on Tax Evasion), La Gaceta, D.O., № 239, Oct. 22, 1981, reprinted in id.

    Decreto № 68-90, Ley de Renta Presuntiva Minima (Decree-Law on Minimum Presumptive Income), La Gaceta, D.O., № 247, Dec. 24, 1990, reprinted in TSIN.

    Decreto № 1534, Ley de Rentas Presuntivas (Law on Presumptive Income), La Gaceta, D.O., № 249, Dec. 27, 1984, reprinted in id.

    Decreto № 523, Impuesto sobre Actuaciones de Artistas Extranjeros (Tax on Performances by Foreign Artists), La Gaceta, D.O., № 78, Apr. 23, 1990, reprinted in id.

    Decreto № 567, Ley de Impuestos a la Carne de Ganado Vacuno (Law Governing the Taxation of Beef), La Gaceta, D.O., № 270, Nov. 22, 1980, reprinted in id.

    Decreto № 3-95, Impuesto sobre Bienes Inmeubles (Tax on Immovables), La Gaceta, D.O., № 21, Jan. 31, 1995, reprinted in id.

    Decreto № 36-91, Impuesto sobre Bienes Inmuebles (Tax on Immovables), La Gaceta, D.O., № 158, Aug. 26, 1991, reprinted in id.

    Decreto № 1531, Ley de Impuesto General al Valor Agregado (Value Added Tax), La Gaceta, D.O., № 248, Dec. 26, 1984, reprinted in TSIN and in IBFD-CIAT [in Spanish].

    Decree № 12-92 to amend the general value added tax, Feb. 28, 1992, reprinted in TLW.

    Decree № 14-92 to exempt certain imports from value added, Feb. 28, 1992, reprinted in TLW.

    Decree № 16-92 amending the rates of income tax withholding at the source, Feb. 28, 1992, reprinted in TLW.

    Decree № 17-92 repeal of net wealth tax and substitution by a tax on immovable assets, Feb. 28, 1992, reprinted in TLW.

    Decreto № 23-94, lmpuesto Específico de Consumo (Special Consumption Tax), La Gaceta, D.O., № 113, June 17, 1994, reprinted in TSIN.

    Decreto № 8-92, Impuesto Unico al Consumo Nacional del Azucar (Tax on the Consumption of Sugar), La Gaceta, D.O., №40, Feb. 28, 1992, reprinted in id.

    Decreto № 40-91, Ley de Aranceles del Registro Público (Fees on Public Register), La Gaceta, D.O. № 182, Sept. 30, 1991, reprinted in id.

    Decreto № 276, Ley sobre Aranceles de Tránsito (Law on Transit Fees), La Gaceta, D.O., № 200, Sept. 7, 1987, reprinted in id.

    Decreto № 637, Ley de Comercialización, Impuesto y Excedentes sobre el Oro y la Plata (Tax on Gold and Silver), La Gaceta, D.O., Feb. 17, 1981, reprinted in id.

    Decreto № 956, Ley de Impuesto para el Servicio de la Deuda Pública (Law on Tax for the Service of the Public Debt), La Gaceta, D.O., № 37, Feb. 15, 1982, reprinted in TSIN (tax on foreign exchange transactions).

    Decreto № 1553, Ley de Exclusion de Exenciones (Decree/Law Governing Exclusions from Exemptions), La Gaceta, D.O., № 5, Jan. 7, 1985, reprinted in id.

    Decreto № 703, Ley de Impuesto sobre el Consumo de Cemento (Decree/Law Governing the Tax on Cement Consumption), La Gaceta, D.O., № 151 July 6, 1962, reprinted in id.

    Decreto № 136, Ley de Impuesto de Timbres (Stamp Tax Law), La Gaceta, D.O., № 229, Nov. 28, 1985, reprinted in id.

    Decreto № 559, Ley de Licencias Comerciales (Law Governing Commercial Licenses), La Gaceta, D.O., № 39, Feb. 15, 1961, reprinted in id.

    Decreto № 539, Ley Creadora de Licencias de Comercio (Law Instituting Business Licenses), reprinted in id.

    Decreto № 362, Ley de Patentes de Licores (Law Governing Alcoholic Beverage Licenses), La Gaceta, D.O., № 136, June 30, 1945, reprinted in id.

    Decreto № 277, Ley sobre Aranceles de Migración y Extranjeria (Governing Levies Applied to Migrants and Aliens), La Gaceta, D.O., № 200, Sept. 7, 1987, reprinted in id.

    Decreto № 49-93, Régimen de Circulación de Vehiculos, La Gaceta, D.O., №216, Nov. 15, 1993, reprinted in id.

    Ley № 127 de Inversiones Extranjeras (Foreign Investment Law), June 19, 1991, reprinted in Ministerio de Economia y Desarrollo, Ley de Inversiones Extranjeras [in Spanish, English].

    Law № 257-97, Tax and Commercial Justice Law, May 25, 1997 reprinted in TLW.

    Niger (NER)

    The tax laws of Niger as of 1981 have been published as a single code in Régime fiscal de la République du Niger (Imprimerie Nationale).

    Ordonnance sur le péage routier, reprinted in Recueil de lois et règlements (République du Niger, 2d ed. 1994).

    Nigeria (NGA)

    We cite to the Laws of the Federation of Nigeria, a multivolume consolidation of the laws in force on Jan. 1, 1990.

    Capital Gains Tax Act, Laws of the Federation of Nigeria, Cap. 42.

    Casino Taxation Act, id., Cap. 45.

    Companies Income Tax Act, id., Cap. 60.

    Customs and Excise Management Act, id., Cap. 84.

    Customs and Excise Management (Disposal of Goods) Act, id., Cap. 85.

    Customs and Excise (Special Penal and Other Provisions) Act, id., Cap. 86.

    Income Tax Management Act, id., Cap. 173.

    Income Tax (Armed Forces and Other Persons) (Special Provisions) Act, id., Cap. 174.

    Income Tax (Authorized Communications) Act, id., Cap. 175.

    Industrial Development (Income Tax Relief) Act, id., Cap. 179.

    Petroleum Profits Tax Act, id., Cap. 354.

    Stamp Duties Act, id., Cap. 411.

    Value-Added Tax Decree 1993, Supplement to Official Gazette № 27, vol. 80, item 102, at A1203, Sept. 1, 1993.

    Norway (NOR)

    The laws of Norway are available [in Norwegian] over the internet or on CD-ROM from The Lovdata Foundation, Oslo, Norway. Its homepage is http://www.lovdata.no. A list of the current tax laws is available at this site.

    Oman (OMN)

    See also Ballantyne, Register of Laws of the Arabian Gulf (loose-leaf). Amendments were published in the Official Gazette on Nov. 2, 1996. See 14 Tax Notes Int’l 19 (Jan. 6, 1997).

    Company Income Tax Law, 1979 [in English].

    Royal Decree 46/87 (June 1987).

    Royal Decree 39/96 (reorganizing Ministry of Finance).

    Pakistan (PAK)

    In addition to the taxes listed below, zakat applies to Muslim citizens and corporations the majority of whose shares are owned by such citizens.

    Income Tax Ordinance, 1979, reprinted in Central Board of Revenue, Income Tax Manual: Part I, Income Tax Ordinance 1979 (Printing Corporation of Pakistan Press 1984) 5th ed. (as amended to July 1993) and in Tax Code (P.L.D. Publishers, Nabha Road, Lahore) (1990-91) and in TLW (as amended through Finance Act 1996).

    Act № XV of 1963, Wealth Tax Act, reprinted in Tax Code, supra (as amended to 1990-91).

    The Sales Tax Act, 1990, reprinted in Tariq Najib Choudhry, Sales Tax Act 1990 (as amended to Aug. 1, 1995) (Tariq Najib Corp., Lahore).

    Act № XII of 1994, The Finance Act, The Gazette of Pakistan, June 30, 1994.

    The Central Excises and Salt Act, 1944, reprinted in The Central Excises and Salt Act, 1944, M. Farani, Lahore Law Times Publications (as amended to 1985), and in Najib Choudhry, Manual of Central Excise Laws (Tariq Najib Corp., Lahore) (as amended through Feb. 1, 1995) (also contains rules and orders).

    The Central Board of Revenue Act № IV of 1924, reprinted in Farani, supra.

    Provisional Collection of Taxes Act № VIII of 1931, id.

    The Oilseeds Cesses Act, № IX of 1946, id.

    The Chemical Fertilizers (Development Surcharge) Act № XLI of 1973, id.

    The Excise Duty on Minerals (Labour Welfare) Act № VIII of 1967, id.

    The Stamp Act, № 2 of 1899, reprinted in M. Farani, Manual of Stamp Laws (Lahore Law Times Publications, undated).

    Finance Act 1996, The Gazette of Pakistan, Extraordinary, July 1, 1996.

    Palau (PLW)

    Unified Tax Act, Title 40, Palau National Code Annotated (Palau National Code Commission) (published by Orakiruu Corp., Koror, Palau) (loose-leaf).

    Panama (PAN)

    Fiscal Code, reprinted in TLW (as amended to July 2, 1997).

    Ley № 8 Impuesto sobre la Renta (Income Tax), Jan. 27, 1956 (as amended to June 1996), reprinted in IBFD-CIAT [in Spanish], reprinted in TLW (as amended to Jan. 17, 1996).

    Ley № 75 of 1976, Impuesto a la Transferencia de Bienes Muebles con Crédito Fiscal (Tax on the Transfer of Movable Goods with Fiscal Credit) (as amended by Law № 17 of July 15, 1992), reprinted in IBFD-CI AT [in Spanish].

    Law № 45, Nov. 14, 1995, creating Selective Tax on Consumption of Carbonated and Alcoholic Beverages and Cigarettes, reprinted in TLW.

    Papua New Guinea (PNG)

    Excise Act, Revised Edition of the Laws of Papua New Guinea, ch. 105 (1983).

    Excise (Beer) Act, id., ch. 106 (1983).

    Excise Tariff Act, id., ch. 107 (1984).

    Income Tax and Dividend (Withholding) Tax Rates Act, id., ch. 111 (1985).

    Income Tax Act 1959, reprinted in Papua New Guinea Income Tax Legislation (CCH Australia Limited) (as amended to 1995).

    Industrial Development (Incentives to Pioneer) Industries Act, Revised Edition of the Laws of Papua New Guinea, ch. 119.

    Licenses Act, id., ch. 112 (1980).

    Personal Tax Act, id., ch. 113.

    Provisional Collection of Taxes Act, id., ch. 115.

    Stamp Duties Act, id., ch. 117.

    Paraguay (PRY)

    The 1992 law simplified the tax system and consolidated the tax legislation.

    Ley № 125/91 que establece el nuevo régimen tributario (Law Establishing a New Tax System), Jan. 9, 1992, as amended to June 1993, reprinted in TLW and in IBFD-CIAT [in Spanish].

    Peru (PER)

    In addition to the taxes listed below, selective consumption tax (excise), real estate, and real estate transfer tax apply. Editorial Economia y Finanzas, Las Orquideas 435, San Isidro, Lima; fax: 442-1356 publishes a loose-leaf service for tax [in Spanish]: Manual del Impuesto a la Renta (two vols.), Manual del Código Tributario (two vols.), Impuesto a las Ventas, and Tributos Municipales.

    Decreto Legislativo № 774, Impuesto a la Renta (Income Tax Law), Dec. 30, 1993, as amended to Nov. 1996, reprinted in IBFD-CIAT [in Spanish], and Unified Consolidated Text of the Income Tax Law, originally Legislative Decree № 200 of June 12, 1981, now Supreme Decree № 185-87-EF of Sept. 28, 1987; also reprinted in 33 TLW (as amended to Mar. 1989).

    Decreto Legislativo № 773, Código Tributario (Tax Code), Dec. 30, 1993 (as amended to Dec. 1996), reprinted in IBFD-CIAT [in Spanish].

    Decreto Legislativo № 775, Impuesto General a las Ventas (General Sales Tax), Dec. 30, 1993 (as amended to May 1996), reprinted in IBFD-CIAT [in Spanish].

    Decreto Ley № 19654 del 12 de diciembre de 1972 Impuesto al Patrimonio Empresarial (Corporate Property Tax), reprinted in Impuesto al Patrimonio Empresarial, Ministerio de Economia, Finanzas y Comercio (1984).

    Philippines (PHL)

    We cite to one of the available annual commercial compilations.

    NIRC—National Internal Revenue Code of 1977, reprinted in The National Internal Revenue Code of the Philippines Annotated (Jose N. Nolledo ed., National Bookstore, Inc. 1993) and in TLW (as amended to June 10, 1993).

    Poland (POL)

    There are a number of sources for the consolidated text of Polish tax laws, both in Polish and in English. For English translations, we cite to Polish Taxation and Customs Duties 1993 and Polish Taxation 1993, Part II (with 1994 supp.). This work has now been superseded by a loose-leaf entitled Polish Law Collection (hereinafter Collection), published by TEPIS and edited by Danuta Kierzkowska, and available from International Information Services, Inc., P.O. Box 3490, Silver Spring, Md., tel. 301-565-2975, fax 301-565-2973. There are also a couple of collections in Polish dated 1993, but presumably updates have been or will be published periodically. These are more complete in that they contain not only all the tax laws, but also the regulations. One is called VAT (Tadeusz Fijalkowskied., Evan: Warsaw 1993) and the other is Podatki: Zbior Przepisow (Lex: Gdansk 1994). In addition to the taxes listed below, motor vehicle tax and payroll tax are imposed.

    Tax Obligations Act, Dziennik Ustaw (Dz. U.) 1980, № 27, item 111 (Excerpts), reprinted in Polish Taxation and Customs Duties 1993, TEPIS, Ministry of Privatization (as amended to 1992) [in English] reprinted in Collection, supra (as amended through 1996) [in English] [Note: on Aug. 29, 1997 a new version of this law was passed, to be effective Jan. 1, 1998. Presumably the new version will be included in Collection, supra.]

    Fiscal Penal Act, Dziennik Ustaw (Dz. U.) 1984, № 22, item 103, id.

    Fiscal Control Act, Dz. U. 1991, № 100, item 442, id., reprinted in Collection, supra (as amended through 1992) [in English].

    Ustawa ó podatku dochodowym od osób fizycznych (Natural Persons’ Income Tax Act), Dz. U. 1991, № 80, item 350, reprinted in Polish Taxation 1993 Part II, with amending supplement 1994 (Danuta Kierzkowska, ed., Irena Gratkowska et al. trans., TEPIS 1993) (as amended to Dec. 16, 1993) [in English], reprinted in Collection, supra (as amended through 1996) [in English].

    Ustawa ó podatku dochodowym od osób prawnych (Legal Persons’ Income Tax Act), reprinted in Collection, supra (as amended through 1996) [in English].

    Remuneration Increase Tax Act, Dz. U. 1991, № 1, item 1, reprinted in Polish Taxation and Customs Duties 1993, at 56, TEPIS, Ministry of Privatization (as amended to 1992) [in English].

    Agricultural Tax Act, Dz. U. 1984, № 52, item 268, id.

    Inheritance and Donation Tax Act, Dz. U. 1983, №45, item 207, id. (amended version in Dz. U. 1997, № 16).

    Taxes and Local Charges Act, Dz. U. 1991, № 9, item 31, id.

    Stamp Duty Act, Dz. U. 1989, № 4, item 23, id.

    Ustawa o podatku od towarów i uslug oraz o podatku akcyzowym (Tax on Goods and Services and Excise Duty), Dz. U. 1993, № 11, item 50, reprinted in Collection, supra (as amended through 1996) [in English].

    Turnover Tax Act, Dz. U. 1983, № 43, item 191, reprinted in Polish Taxation and Customs Duties 1993, at 20, TEPIS, Ministry of Privatization (as amended to 1992) [in English].

    Ordinance Governing the Income Tax on Certain Kinds of Income of Foreign Individuals and Legal Entities Domiciled or Headquartered Abroad, of Apr. 3, 1992, Dz. U. № 32 (1992), item 137, reprinted in CEEL [in English].

    Portugal (PRT)

    We cite to a compilation published by the tax authority. In addition to those listed, the following taxes are imposed: consumption duty on tobacco, domestic consumption duty on coffee, motor vehicle tax, tax on petroleum products, road license and road hauling taxes, gaming tax, tax on the use, carrying, and possession of weapons, entertainment tax, special consumption duty on alcoholic beverages, excise duty on alcohol, and tax on insurance premiums. References to the laws imposing these taxes are found in EU Inventory.

    Decreto-Lei № 442-A/88, Código do Imposto sobre o Rendimento das Pessoas Singulares (Individual Income Tax Code), Nov. 30, 1988, reprinted in Código do Imposto sobre o Rendimento das Pessoas Singulares (IRS): Comentado e Anotado (2nd ed., Direcção-Geral das Contribuições e Impostos 1990) (as amended to 1990) [in Portuguese] and in TLW.

    Decreto-Lei № 442-B/88, Código do Imposto sobre o Rendimento das Pessoas Colectivas (Corporation Tax Code), Nov. 11, 1988, reprinted in Código do Imposto sobre o Rendimento das Pessoas Colectivas (IRC): Comentado e Anotado (Direçcão-Geral das Contribuições e Impostos 1990) (as amended to 1990) [in Portuguese] and in TLW (as amended to Mar. 10, 1993).

    Decreto-Lei № 290/92, Código do Imposto sobre o Valor Acrescentado (Value Added Tax Code), as amended to Apr. 1994, reprinted in Código do Imposto sobre o Valor Acrescentado (Rei dos Livros 11th ed. 1994) [in Portuguese].

    Decreto № 45 760, Código do Imposto de Transações (Transaction Tax Code), June 5, 1964, reprinted in Código do Imposto de Transações (as amended to 1985) (Rei dos Livros 1985) [in Portuguese].

    Decreto-Lei № 44 561, Código do Imposto de Capitais (Capital (Wealth) Tax Code) of Sept. 10, 1962, reprinted in Código do Imposto de Capitais, Rei dos Livros, 6a¯ ed. (as amended to 1987) [in Portuguese].

    Decreto-Lei № 45 103, Código da Contribuição Industrial (Industrial Contribution Code) of July 1, 1963, reprinted in Código da Contribuição Industrial, Rei dos Livros 12a¯ ed. (as amended to 1987) [in Portuguese].

    Decreto-Lei № 46 373, Código do Imposto de Mais-Valias (Capital Gains Tax Code), June 9, 1965, reprinted in Código do Imposto de Mais-Valias, Rei dos Livros 5a¯ ed. (as amended to 1987) [in Portuguese].

    Decreto-Lei № 41 969, Código da Sisa e do Imposto sobre as Sucessões e Doações (Transfer, Succession and Gift Tax Code), Nov. 24, 1958, reprinted in Código da Sisa e do Imposto sobre as Sucessões e Doações, Rei dos Livros 5a¯ ed. (as amended to 1987) [in Portuguese].

    Código da Contribuição Predial e do Imposto sobre a Indústria Agrícola (Code Governing the Urban Property Tax and the Agricultural Industrial Tax), Decreto-Lei № 45 104, de 1 de junho de 1963, reprinted in Código da Contribuição Predial e do Imposto sobre a Indústria Agricola, Rei dos Livros 5a¯ ed. (as amended to 1988) [in Portuguese].

    Decreto-Lei № 44 305, Código do Imposto Profissional (Occupational Tax Code), Apr. 27, 1962, reprinted in Código do Imposto Profissional, Rei dos Livros 10a¯ ed. (as amended to 1988) [in Portuguese].

    Decreto-Lei № 45 399, Código do Imposto Complementar (Code of Complementary Tax), Nov. 30, 1963, reprinted in Código do Imposto Complementar, Rei dos Livros 9a¯ ed. (as amended to 1988) [in Portuguese].

    Decreto-Lei № 12 700, Imposto do Selo, Regulamento e Tabela Geral (Stamp Tax: Regulations and General Schedule), Nov. 20, 1926, reprinted in Imposto do Selo, Regulamento e Tabela Geral, Rei dos Livros 7a¯ ed. (as amended to 1988) [in Portuguese].

    Decreto-Lei № 154/91, Código de Processo Tributario (Code of Taxation Procedure), Apr. 23, 1991, reprinted in Código de Processo Tributário, Rei dos Livros 3a¯ ed. (as amended to 1993) [in Portuguese].

    Qatar (QAT)

    See also Ballantyne, Register of Laws of the Arabian Gulf (loose-leaf).

    Decree-Law № 11 of 1993 concerning the Income Tax, Official Gazette № 12 of 1993 [in English].

    Romania (ROM)

    We have been unable to locate a published collection of tax legislation. Therefore, we cite to the official Gazette (Monitorul Oficial al României, hereinafter M. Of.). The tax legislation is summarized in şaguna, Drept Financiar şi Fiscal (Oscar Print: Bucharest 1997). A general citator to the legislation of Romania, consisting of a chronological list of laws and other norms, a citator to amendments, and an index, is loan Vida and Clara Melinte, Repertoriul Legislatiei Romaniei 1989-1996 (Lumina Lex: Bucharest 1997). We abbreviate Lege (Law) as L. and Ordonanţa ale Guvernului (Government Ordinance) as O.G. A few commercial and tax laws are available in English on the RDA website (http://www.rda.ro).

    Lege privind Impozitul pe Salarii Nr. 32/1991 (Tax on Salaries), M. Of., June 29, 1993 [in Romanian] (as amended), reprinted in JPRS-EER-94-006-S, Feb. 18, 1994, at 4 [in English], amended or affected by

    • L. № 46, July 4, 1994, M. Of., July 6, 1994.

    • O.G. № 17, Aug. 17, 1995, M. Of., Aug. 17, 1995.

    • O.G. № 8/1996, M. Of., Jan. 30, 1996.

    • L. № 42/1990, M. Of., Aug. 21, 1992.

    • L. № 9, May 25, 1992, M. Of., May 25, 1992.

    • O.G. № 23, Aug. 21, 1992, M. Of., Aug. 28, 1992.

    • O.G. № 22, Aug. 25, 1993, M. Of., Aug. 30, 1993.

    • L. № 61, Sept. 22, 1993, M. Of., Sept. 28, 1993.

    • L. № 44, July 1, 1994, M. Of., July 7, 1994.

    • L. № 4, Jan. 10, 1995, M. Of., Jan. 19, 1995.

    • O.G. № 13, Jan. 31, 1995, M. Of., Feb. 3, 1995.

    Decret-Lege privind organizarea şi desfaşurarea unor activitaţi economice pe baza liberei iniţiative Nr. 54/1990 (Decree-Law on the organization and carrying out of certain economic activities on the basis of free initiative) [in Romanian].

    O.G. 44, Imbunatatirea impunerii activitatilor producatoare de venit din exerciturea unei profesii libere şi din lucrari literare, de arta şi ştiinaţific (taxation of income-producing activities in the exercise of liberal professions and literary, artistic, and scientific work), M. Of., Sept. 1, 1995, amended and approved by I. 125, M. Of., Dec. 27, 1995 [in Romanian].

    Lege privind Impozitul pe Venitul Agricol Nr. 34/1994 (Law on Tax on Income from Agriculture), M. Of., June 2, 1994 [in Romanian and in English], FBIS-EEU-95-005, Jan. 9, 1995.

    Decretul Nr. 153 privitor la impozitul pe veniturile populapei (Decree on taxing the incomes of the population) Buletinul Oficial al Marii Adunari Nationale a R.P.R. Nr. 22, May 11, 1954 [in Romanian].

    Decree Nr. 394/1973 Privitor la impunerea veniturilor realizate din îmchirieri de imobile (Decree on the taxation of incomes realized from the lease of immovable property), July 10, 1973.

    PT—Ordonanţa Guvernului privind Impozitul pe Profit (Profit Tax), Nr. 70/ 1994, M. Of., Aug. 31, 1994, approved and amended by Law № 73/1996, M. Of., Aug. 2, 1996, republished as amended, M. Of., March 12, 1997 [in Romanian], affected by

    • L. 29/1996 (Bugetrul de stat pe anul 1996), M. Of., May 6, 1996.

    • L. 109/1996, Organizarea şi functionarea cooperatiei de consum şi a cooperatiei de credit, M. Of., Oct. 18, 1996.

    • L. 52/1992, depunerea unor sume in contul “Moldova”, M. Of., June 2, 1992.

    • L. 71/1994 (foreign investment), M. Of., July 22, 1994.

    • O.G. 31/1997 (foreign investment), M. Of., June 16, 1997 (available in English on RDA website).

    • L. 134/1995 (oil production), M. Of., Dec. 29, 1995.

    Ordonanţa Guvernului Nr. 3/1992 privind Taxa pe Valoarea Adaugata (Value Added Tax Law), republished as amended, M. Of., Jan. 11, 1995 [in Romanian], modified or affected by

    • O.G. 9, Jan. 27, 1995, M. Of., Jan. 31, 1995.

    • Ordin al Ministrului de stat, Ministrul finanţelor, № 350, Feb. 27, 1995, M. Of., May 19, 1995.

    • L. 130/1992, M. Of., Dec. 30, 1992.

    • O.G. 2/1996, M. Of., Jan. 26, 1996.

    • O.G. 21, July 24, 1996, M. Of., July 30, 1996.

    O.G. 26, Aug. 18, 1995 privind impozitul pe dividende (tax on dividends), M. Of., Aug. 30, 1995, approved by L. 101, M. Of., Nov. 21, 1995.

    O.G. 47, privind impunerea unor venituri, realizate din Romania, de persoanele fizice şi juridice nerezidente (taxation of incomes realized in Romania by nonresident physical and legal persons), M. Of., Aug. 30, 1997 [in Romanian].

    O.G. 11/1996, executarea creanţelor bugetare, M. Of., Jan. 31, 1996, corrected in M. Of., June 25, 1996, amended and approved by L. 108, M. Of., Oct. 17, 1996.

    Legea № 42/1993, privind accizele la produsele din import şi din ţară precum şi impozitul la ţiţeiul din producţia intern şi gazele naturale, M. Of., July 1, 1993, republished as amended, M. Of., Dec. 11, 1995, amended by O.G. 20, M. Of., July 30, 1996.

    Hortărârea Guv., Nr. 679, Oct. 1, 1991, M. Of., Nov. 12, 1991, impozitul pe spectacole.

    L. 12/1990 (tax equal to value of illegal commercial activities), M. Of., Aug. 8, 1990.

    L. 54, M. Of., June 4, 1992, impozitul pe sumele obţinute din vânzarea activelor societăţilor comerciale cu capital de stat, amended by O.G. 14, Aug. 26, 1992; O.G. 70, M. Of., Aug. 31, 1994.

    O.G. 24, M. Of., Aug. 5, 1996, impozitul pe venitul reprezentaţelor din Romania ale societăţilor comerciale si organizaţiilor economice straine.

    L. 29, May 3, 1996, Law on the State Budget for 1996, M. Of., May 6, 1996 (contains various tax provisions).

    Various tax preferences are provided by the following:

    • L. 84/1992 (free zones), M. Of., July 30, 1992.

    • L. 18/1991 (agricultural lands), M. Of., Feb. 20, 1991.

    • L. 134/1995 (foreign investors in petroleum sector), M. Of., Dec. 29, 1995.

    • H.G. 566/1993 (obligations of TAROM).

    • L. 27/1994 (local taxes), M. Of., May 24, 1994.

    • D.-L. 118/1990 (exemption for persons persecuted for political reasons), M. Of., Apr. 9, 1990.

    • L. 47/1991 (insurance), M. Of., July 19, 1991.

    • L. 34/1991 (National Bank), M. Of., Apr. 3, 1991.

    • L. 54/1991 (real property of trade unions), M. Of., Aug. 7, 1991.

    • L. 42/1990 (veterans, etc.), republished, M. Of., Aug. 23, 1996.

    • L. 57/1992 (handicapped persons), June 12, 1992.

    Russia (RUS)

    Russia suffers from a plethora of tax legislation, which is especially complex because of the number of levels of government and administrative agencies issuing orders, circulars, etc., with varying degrees of legal effect. If one restricts the examination to federal laws, however, the situation is manageable. Amendments are frequent, but they are not so numerous that it is impossible to keep track of them. The federal laws are identified by FZ number (FZ is the Russian abbreviation for federal law) and are published in the Sobranie Zakonodatelstva Rossiskoi Federatsii (Collection of Legislation of the Russian Federation) [hereinafter Sobranie]. This comes out every few weeks and (as of early 1997) has been arriving to subscribers within a few weeks of publication, so that it is not difficult to keep up to date by consulting this publication. The most recent amendment of a federal law contains a list of all the previous amendments. Of course, as with the tax laws of any other country, it becomes tedious to consolidate the amendments once they start piling up. The consolidated text is published by various publishers. We cite a CD-ROM called Kodeks [in Russian], published by Computer Software Development Center, Isakievskaya pl. 6, 190107 St. Petersburg (e-mail: ask@kodd.spb.ru). See its website at http://www.dux.ru/kodex/engkodexhome. English translations are published by Ernst & Young, including periodic consolidated texts. The tax legislation of Russia in English (as amended through 1995) is also reprinted with commentary in the taxation chapter of Business and Commercial Laws of Russia (Mark C. Swords ed., McGraw-Hill 1995). This publication contains decrees, circulars, and other material in addition to the text of the basic laws and is therefore quite useful for the English reader. A website with laws in Russian can be found at http://www.inforis.nnov.su/infobase.

    Law № 2118-1 of the Russian Federation of Dec. 27, 1991, Concerning the Fundamental Principles of the Taxation System in the Russian Federation (as amended through Federal Law № 9-FZ of the Russian Federation of July 1, 1994) [in English by Ernst & Young].

    Zakon № 188-FZ O Vnesenii Izmeneniy i Dopolneniy v Otdel’nye Zakony Rossiyskoy Federatsii o Nalogakh (Law on Making Amendments and Additions to the Various Tax Laws of the Russian Federation), Nov. 30, 1995, Sobranie, Dec. 4, 1995 [in Russian].

    Zakon № 5238-1 O Federal’nykh Organakh Nalogovoy Politsii i Ugolovno-Protsessual’nyy Kodekx RSFSR (S Izmeneniyami na 17 dekabrya 1995 goda) (Law of the RF on the Federal Organs of Tax Police), June 24, 1993 (as amended to Dec. 17, 1995), CD Legal Information System “Kodeks” 1992-96 [in Russian].

    Zakon № 943-1 O Gosudarstvennoy Nalogovoy Sluzhbe RSFSR (s Izmeneniyami i Dopolneniyami na 25 febralya 1993 goda) (Law on The State Tax Service of the RSFSR), Mar. 21, 1991 (as amended to Feb. 25, 1993), CD Legal Information System “Kodeks” 1992–96 [in Russian], amended by Law № 67-FZ of June 13, 1996, Sobranie, June 17, 1996, № 25, art. 2958.

    Zakon № 2025-1 Rossiyskoy Federatsii O Nalogooblozhenii Dokhodov Bankov (Law on the Taxation of Income on Banks), Dec. 12, 1991, Delovoy mir June 3, 1993 [in Russian] [in English by Ernst & Young] (as amended through the Law of the Russian Federation of Dec. 22, 1992, Concerning Amendments and Additions to Certain Tax Laws of the Russian Federation).

    Law № 29-FZ of the Russian Federation, Oct. 27, 1994, Concerning the Introduction of Amendments and Additions to Certain Laws of the Russian Federation, and Concerning Special Considerations Relating to the Procedure for Contributions to Certain State Non-Budgetary Funds [in English by Ernst & Young].

    Law № 37-FZ of the Russian Federation, Nov. 11, 1994, Concerning the Introduction of Amendments and Additions to Certain Tax Laws of the Russian Federation and Concerning the Establishment of Exemptions in Relation to Compulsory Payments to State Non-Budgetary Funds [in English by Ernst & Young].

    PT—Law № 2116-1 of the Russian Federation, Dec. 27, 1991, Concerning Tax on the Profit of Enterprises and Organizations [in English by Ernst & Young] (as amended through Law № 54-FZ of the Russian Federation of Dec. 3, 1994).

    • The amending acts since 1995 are Law № 64-FZ of Apr. 25, 1995, Sobraniye, May 1, Zakon № 25 o Spetsialnom Naloge s Predpriyatiy, Uchrezhdeniy i Organizatsiy dlya Finansovoy Podderzhki Vazhneyshikh Otrasley Narodnogo Khozyaystva, Feb. 23, 1995, Sobranie Zakonodatelstva Feb. 27, 1995 [in Russian], Law № 25-FZ of the Russian Federation of Feb. 23, 1995, Concerning Special Tax on Enterprises, Institutions, and Organizations for the Financial Support of Major Sectors of the National Economy of the Russian Federation and Provision for the Stable Activity of Enterprises of those Sectors [in English by Ernst & Young].

    Zakon № 2030-1 O Naloge na Imushchestvo Predpriyatiy (S Izmeneniyami i Dopolneniyami na 22 Avgusta 1995 goda) (Law on the Taxation of Property of Enterprises) Dec. 13, 1991, as amended to Aug. 22, 1995), CD Legal Information System “Kodeks” 1992-96 [in Russian] and [in English by Ernst & Young] (as amended through Nov. 11, 1994), amended by Law № 1-FZ, Sobranie, № 2, art. 217 (Jan. 12, 1998).

    Law № 2-17 Concerning Rates and Exemptions Relating to Tax on the Assets of Enterprises, Mar. 2, 1994 [in English by Ernst & Young].

    Zakon № 222-FZ Ob Uproshchennoy Sisteme Nalogooblozheniya, Ucheta i Otchetnosti Dlya Sub’ektov Malogo Predprinimatel’stva (Law on Simplifying the System of Taxation, Organization and Accounting for Subjects of Small Enterprises) Dec. 29, 1995, CD Legal Information System “Kodeks” 1992-96 [in Russian and English], available on Microfiche and from the Tax Analysts’ Access Service/TaxBase.

    Law of the Russian Federation of Dec. 6, 1991, Concerning Excise Duty [in English by Ernst & Young] (as amended by Law № 4229-1 of Dec. 25, 1992). The consolidated text of the excise tax law as amended by Law № 23-FZ of Mar. 7, 1996, was published in Sobraniye, Mar. 11, 1996, № 11, art. 1016, reprinted in Rossiyskaya Gazeta March 13, 1996 [in Russian], FBIS-SOV-96-068-S, FBIS-Database, Mar. 13, 1996 [in English]. It was amended by Law № 12-FZ of Jan. 10, 1997, Sobranie, Jan. 20, 1997, № 3, art. 356.

    IT—Zakon № 1998-1 RSFSR O Podokhodnom Naloge s Fizicheskikh Lits (s Izmeneniyami i Dopolneniyami na 5 marta 1996 goda) (Law on Income Tax of Physical Persons of Dec. 7, 1991, as amended to Mar. 5, 1996), CD Legal Information System “Kodeks” 1992—96 [in Russian] and [in English by Ernst & Young] (as amended through July 16, 1992). The amending acts since 1995 are Law № 10-FZ of Jan. 27, 1995, Sobranie, Jan. 30, 1995, № 5, art. 346; Law № 95-FZ of June 26, 1995, Sobranie, June 26, 1995, № 26, art. 2403; Law № 211-FZ of Dec. 27, 1995, Sobranie, Jan. 1, 1996, № 1, art. 4; Law № 22-FZ of March 5, 1996, Sobranie, March 11, 1996, № 11, art. 1015, reprinted in Rossiyskaya Gazeta Mar. 7, 1996, also available on Microfiche and from the Tax Analysts’ Access Service/TaxBase; Law № 83-FZ of June 21, 1996, Sobranie, June 24, 1996, № 26, art. 3035; Law № 11-FZ of Jan. 10, 1997, Sobranie, Jan. 20, 1997, № 3, art. 355; Law № 94-FZ of June 28, 1997, Sobranie, № 26, art. 2955; Law № 159-FZ of Dec. 31, 1997, Sobranie, № 1, art. 6.

    Zakon № 2020-1 O Naloge s Imushchestva, Perekhodyashchego v Poryadke Nasledovaniya Ili Dareniya (S Izmeneniyami i Dopolneniyami na 27 Yanvarya 1995 goda) (Law of the RF on Inheritance and Gift Tax), Dec. 12, 1991 (as amended to Jan. 27, 1995) CD Legal Information System “Kodeks” 1992–96 [in Russian] reprinted in 2 Business and Commercial Laws of Russia: Business Enterprises, Privatization, Commercial Trade, McGraw-Hill [in English] (original law without amendments).

    Zakon № 2071-1 Ob Investitsionnom Nalogovom Kredite (V Redaktsii Zakona Rossiyskoy Federatsii og 16 Iulya 1992 goda) (Law on Investment Tax Credit), Dec. 20, 1991 (as amended to July 16, 1992), CD Legal Information System “Kodeks” 1992–96 [in Russian].

    Law № 31-FZ of the Russian Federation of Mar. 13, 1995, Concerning Certain Issues Relating to the Granting of Exemptions to Participants in Foreign Economic Activity [in English by Ernst & Young].

    Zakon № 2003-1 O Nalogakh na Imushchestvo Fizicheskikh Lits (S Izmeneniyami i Dopolneniyami na 27 yanvarya 1995 goda) (Law on the Taxation of Property of Physical Persons) Dec. 9, 1991 (as amended to Jan. 27, 1995), Rossiyskaya Gazeta Feb. 14, 1991 [in Russian] and CD Legal Information System “Kodeks” 1992–96 [in Russian] and [in English] by Ernst & Young] (as amended through Law № 25-FZ of the Russian Federation of Aug. 9, 1994).

    Zakon № 1759-1 O Dorozhnykh Fondakh v Rossiyskoy Federatsii (S Izmeneniyami i Dopolneniyami na 27 Dekabrya 1995 goda) (Law on the Road Fund), Oct. 18, 1991 (as amended to Dec. 27, 1995), CD Legal Information System “Kodeks” 1992–96 [in Russian], amended by Law № 82-FZ of May 26, 1997, Sobranie, № 22, June 2, 1997, item 2545.

    Zakon № 2023-1 O Naloge na Operatsii S Tsennymi Bumagami (V Redaktsii, Vvedennoy v Deystviye s 23 Octyabrya 1995 goda (Law on Taxing Securities Transactions, as amended to Oct. 23, 1995), CD Legal Information System “Kodeks” 1992–96 [in Russian].

    Zakon № 2005-1 O Gosudarstvennoy Poshline (Law on State Duty) (this is like a stamp tax in some respects and like a fee (such as court filing fees and passport fees) in other respects), Dec. 9, 1991, reprinted in Ekonomicheskaya Gazeta № 16 Apr. 1992 [in Russian], amended by Law № 4499-1, On Changes and Additions to the Law of the RF on the State Stamp Tax, Feb. 17, 1993 [in English] and Law № 118-FZ o Vnesenii Dopolneniya v Zakon Rossiyskoy Federatsii o gosudarstvennoy Poshline, Aug. 20, 1996, reprinted in Ekonomika i Zhizn № 36 [in Russian], and Law № 105-FZ, Sobranie, July 21, 1997, № 29, art. 3506.

    Zakon № 1992-1 O Naloge na Dobavlennuyu Stoimost (S Izmeneniyami i Doppolneniyami na 1 Aprelya 1996 goda) (Law Concerning Value Added Tax) Dec. 6, 1991 (as amended to Apr. 1, 1996) in CD Legal Information System “Kodeks” 1992–96 [in Russian, in English] available in TaxBase (translation of text as amended through Apr. 1, 1996). Amendments after Apr. 1, 1996: Law № 45-FZ of May 22, 1996, Sobranie, May 27, 1996, № 22, art. 2582, available in TaxBase [in English]; Law № 54-FZ, Sobranie, Mar. 24, 1997, № 12, art. 1377; Law № 73-FZ, Sobranie, May 5, 1997.

    Act № 2019-1, Dec. 12, 1991, RSFSR Health Resort Charge on Natural Persons Act, reprinted in Business and Commercial Laws of Russia, supra § 4.52 [in English].

    Act № 2000-1, RSFSR Natural Persons Business Registration and Fee Act, reprinted in Business and Commercial Laws of Russia, supra § 4.54 [in English].

    Law № 5238-1, On the Federal Organs of the Tax Police, June 24, 1993, CD Legal Information System “Kodeks” 1992–96 [in Russian].

    Rwanda (RWA)

    Loi du 2 juin 1964 relative aux impôts sur les revenus, J.O. № 12 du 15.6.1964, as amended through 1984, reprinted in Ministère des finances et de l’économie, Code des impots directs, tome 1 (Imprimerie nationale).

    Impôt personnel, Decree-Law of Dec. 28, 1973, reprinted in Codes et lois de Rwanda (Rejntjens and Gorus eds., 1983) (as of Dec. 31, 1978).

    Contribution personnelle minimum, Law of Feb. 28, 1968, reprinted in id.

    Code des investissements, Decree-Law № 30-77 of Sept. 21, 1977, reprinted in id.

    Taxe de consommation à percevoir sur les bières de fabrication locale, Law of Mar. 5, 1968, reprinted in id.

    Taxe de consommation à percevoir sur les limonades, eaux gaseuses et autres boissons non alcooliques de fabrication industrielle locale, Decree-Law of Dec. 31, 1974, reprinted in id.

    Law № 29/91, June 28, 1991, Business Income Tax, Journal officiel, July 1, 1991 [in French].

    St. Kitts and Nevis (KNA)

    Auctioneers Ordinance № 4 of 1947, Government Printery.

    Act № 6 of 1972, The Licenses on Businesses and Occupations Act, 1972, Government Printery.

    Act № 13 of 1973, Licenses on Business and Occupations Act (Reduced License Fees Order), 1973, Government Printery.

    Order № 5A of 1987, The Cable Television (Fee) Order, Government Printery.

    Act № 5 of 1980, Companies (Amendment) Act [providing for Tax Exempt Certificate Fee], Government Printery.

    Act № 5 of 1982, Companies (Amendment) Act (exempting certain offshore companies from income tax), Government Printery.

    Act № 5 of 1974, Consumption Tax Act, 1974, amended by

    • Consumption Tax Order № 19 of 1976.

    • Consumption Tax Amendment Order № 38 of 1980, Government Printery.

    Act № 17 of 1972 to amend the Dog Tax Ordinance, Government Printery.

    Act № 15 of 1968, Public Entertainments and Lotteries Tax Act, Government Printery.

    Act № 9 of 1990, The Finance Act, Government Printery.

    Act № 17 of 1969, The Betting and Gaming Act, amended by

    • Act № 10 of 1977, The Betting and Gaming (Amendment) Act, Government Printery.

    • Act № 17 of 1974, The Fiscal Incentives Act, Government Printery.

    Act № 12 of 1976, Hotel Accommodation Tax Act, amended by

    • Act № 6 of 1979, Hotel Accommodation Tax (Amendment) Act,

    • Act № 11 of 1980, Hotel Accommodation Tax (Amendment) Act,

    • Act № 1 of 1982, Hotel Accommodation Tax (Amendment) Act,

    • Act № 8 of 1983, Hotel Accommodation Tax (Amendment) Act,

    • Act № 2 of 1990, Hotel Accommodation Tax (Amendment) Act,

    • Act № 2 of 1994, Hotel Accommodation Tax (Amendment) Act, Government Printery.

    Income Tax Ordinance № 17 of 1966, amended by

    • Act № 20, Income Tax (Amendment) Ordinance, 1966.

    • Statutory Rules and Orders № 41 of 1966, The Income Tax (Evasion of Tax Payment) (Prevention) Rules.

    • Act № 12 of 1970, Income Tax Ordinance (Amendment) Act.

    • Act № 5 of 1972, Income Tax Ordinance (Amendment) Act.

    • Act № 19 of 1972, Income Tax Ordinance (Amendment № 2) Act.

    • Statutory Rules and Orders № 28 of 1972, The Income Tax (Approved Mortgages) Regulations.

    • Act № 13 of 1974, Income Tax Ordinance (Amendment) Act.

    • Act № 13 of 1976, Income Tax Ordinance (Amendment) Act.

    • Act № 63, The Income Tax (Evasion of Tax Payment) (Prevention) (Amendment) Rules 1976.

    • Act № 17 of 1979, The Income Tax (Approved Institutions) Order, 1979.

    • Act № 14 of 1980, The Income Tax Ordinance (Amendment) Act (Witholding Tax).

    • Act № 3 of 1982, Income Tax (Amendment) Act, 1982.

    • Act № 3 of 1988, Income Tax (Amendment) Act, 1988.

    • Act № 2 of 1989, Income Tax (Amendment) Act, 1989, Government Printery.

    Act № 14 of 1986, Exempt Insurance Companies Act, Government Printery.

    Land and House Tax Ordinance, reprinted in The Revised Laws of St. Christopher, Nevis, and Anguilla, Cap. 251, Waterlow & Sons Ltd. 1964, amended by

    • Ordinance № 4 of 1964, Land and House Tax (Amendment) Ordinance, Government Printery.

    • Act № 4 of 1972, Land and House Tax Ordinance (Amendment) Act, Government Printery.

    • Act № 6 of 1988, Land and House Tax (Amendment) Act of 1988, Government Printery.

    • № 14 of 1996, Land and House Tax (Amendment) Act Cap. 251, available on TaxBase.

    Liquor License Ordinance, reprinted in The Revised Laws of St. Christopher, Nevis, and Anguilla, Cap. 252, Waterlow & Sons Ltd. 1964, amended by

    • Act № 3 of 1972, Liquor Licenses Ordinance (Amendment) Act.

    • Act № 3 of 1975, Liquor Licenses Ordinance (Amendment) Act.

    Act № 15 of 1982, The Mercantile Tax Act, Government Printery.

    Act № 13 of 1985, The Social Services Levy Act, Government Printery.

    Stamp Act, reprinted in The Revised Laws of St. Christopher, Nevis, and Anguilla, Cap. 257, Waterlow & Sons Ltd. 1964, amended by Act № 4 of 1982 Stamp (Amendment) Act.

    The Telecommunications (Licenses and Fees) (Amendment) Order of 1983, Government Printery.

    Act № 12 of 1980 Traders Tax Act, Government Printery, amended by

    • Act № 10 of 1985, Traders Tax (Amendment) Act.

    • Act № 1 of 1988, Traders Tax (Amendment) Act.

    • Act № 3 of 1989, Traders Tax (Amendment) Act.

    Travelling Agents and Pedlars Licenses Ordinance, Cap. 260, reprinted in The Revised Laws of St. Christopher, Nevis, and Anguilla, Cap. 260, Waterlow & Sons Ltd. 1964, amended by

    • Act № 1 of 1970, Travelling Agents and Pedlars Licences Ordinance (Amendment) Act.

    • Act № 27 of 1976, Fees, (Miscellaneous Amendments) Act.

    Act № 2 of 1981, Travel Tax Act, Government Printery.

    Vehicles and Road Traffic (Fees), Order № 10 of 1987, Government Printery.

    Act № 14 of 1980, Income Tax Ordinance (Amendment) Act, Government Printery.

    St. Lucia (LCA)

    Saint Lucia: Consolidated Index of Statutes and Subsidiary Legislation to 1st January 1996 has been published by the Faculty of Law Library, University of the West Indies, Barbados. This lists the amending laws, and so they will not be listed here. The tax laws listed are as follows:

    Consumption Tax Act 1968.

    Excise Ordinance (Cap. 203).

    Fiscal Incentives Act 1974.

    Foreign Currency Export Tax 1982.

    Hotel Accomodation Tax Act 1973.

    Income Tax Act, 1989, reprinted in TLW (as amended through Income Tax (Amendment) (№ 2) Act, 1994), amended by Act № 8 of 1996, Income Tax (Amendment) Act, 1996.

    Income Tax (Federal Endowments) Act 1960 (Cap. 151).

    Insurance Premium Tax Act 1980.

    Land and House Tax Ordinance (Cap. 217).

    Stamp Duty Ordinance (Cap. 219).

    Succession Duty (War Deaths) Ordinance (Cap. 221).

    Travel Tax Act 1982.

    St. Vincent and the Grenadines (VCT)

    We cite to the 1990 Revised Edition of The Laws of St. Vincent and the Grenadines, a consolidation of the laws in force on Jan. 1, 1991. The tax laws are mostly in volume 7, Title XXIV, Revenue and Currency. Amending acts are listed in Saint Vincent and the Grenadines: Consolidated Index of Statutes and Subsidiary Legislation (1997).

    Bay Rum and Perfumed Spirits Act, The Laws of St. Vincent and the Grenadines, ch. 299.

    Consumption Tax Act, id., ch. 301.

    Cotton Tax Act, id., ch. 38.

    Duties and Taxes (Exemption in the Public Interest) Act, id., ch. 305.

    Excise Act, id., ch. 307.

    Excise Equalisation Duty Act, id., ch. 308.

    Export Tax Act, id., ch. 309.

    Finance (Provision for Payment of Taxes) Act, id., ch. 310.

    Fiscal Incentives Act, id., ch. 336.

    Hotel Tax Act, id., ch. 338.

    Income Tax Act, id., ch. 312, as amended by Act № 41 of 1988, Income Tax (Amendment) Act, 1988, available on TaxBase; amended by Act № 10 of 1993, Income Tax (Amendment) Act, 1993; Act № 38 of 1993, Income Tax (Amendment) (№ 2) Act, 1993.

    Insurance Business Tax Act, id., ch. 313.

    Interest Levy Act, id., ch. 314.

    International Communications Service Surcharge Act, id., ch. 315.

    Land Tax Act, id., ch. 316.

    Provisional Collection of Taxes Act, id., ch. 317.

    Stamp Act, id., ch. 318.

    Travel Tax Act, id., ch. 319.

    Currency Export Tax Act, id., ch. 321.

    Samoa (WSM)

    The taxes imposed in Samoa include income tax, VAT (Value-Added Goods and Services Tax Act 1992/93), payroll taxes, business license, airport departure tax, import and export duties, and stamp duty. (Note: Samoa recently changed its name from Western Samoa.) The laws as of Jan. 1, 1978, are set forth in Reprint of the Statutes of Western Samoa (N. Slade, Attorney-General, ed.). Subsequent enactments through June 1, 1989, are listed in Patrick Fepulea’i and Rosemary Gordon, Western Samoa Legislation Lists (3d ed. 1989).

    San Marino (SMR)

    The following laws were obtained from the official gazette:

    Legge sulle imposte de successione (Inheritance Tax), Oct. 29, 1981.

    Legge sulle imposte di registro (Registration Tax), Oct. 29, 1981.

    Legge sulle imposte di bollo (Stamp Tax), Oct. 29, 1981.

    Legge № 91 Istituzione dell’imposta generale sui redditi (income tax), Oct. 13, 1984.

    • Legge № 155 (Dec. 30, 1986) Modifiche alle leggi 13 ottobre 1984 № 91 “Istituzione dell’Imposta Generale sui Redditi” e 22 marzo 1986 № 38 “Provvedimenti in materia Fiscale” (income tax and tax provisions amendments).

    • Legge № 9 (Jan. 22, 1993) Modifiche alla legge 13 ottobre 1984 № 91 “imposta Generale sui Redditi” (income tax amendments).

    Legge № 9 Aggiornamento imposte e diritti catastali (revises land tax rates), Jan. 25, 1984.

    Legge № 27 Tassa di circolazione per i veicoli (car tax), Feb. 20, 1991.

    São Tomé and Principe (STP)

    Decree-Law 42/93, May 18, 1993, amends taxes on inheritance, gifts, and transfer, Diario da república, Aug. 10, 1993 [in Portuguese].

    Decree-Law 11/88, May 14, 1988, Airport Taxes, Diario da república, May 25, 1988 [in Portuguese].

    Decree-Law 40/88, April 9, 1988, approves the general table of stamp tax, Diario da república, Dec. 20, 1988 [in Portuguese].

    Decree-Law 20/88, June 14, 1988, specifies amounts of travel tax for passengers on international flights, Diario da república, June 22, 1988 [in Portuguese].

    Saudi Arabia (SAU)

    The income tax regulations and the zakat regulations are issued by royal decree, but much of the operative rules are contained in resolutions, circulars, etc. An English translation of many of these is contained in Regulations for Income Tax, Road Tax, and Zakat (1978) and in Regulations for Income Tax (1981), both published by the Zakat and Income Tax Department of the Ministry of Finance and National Economy. See also Ballantyne, Register of Laws of the Arabian Gulf (loose-leaf).

    Income Tax Regulations, reprinted in Ministry of Finance and National Economy, Zakat and Income Tax Department, Regulations for Income Tax, Road Tax, and Zakat (Safir Bureau: Riyadh), and in TLW (as amended to Mar. 1993).

    Zakat Regulations, reprinted in Ministry of Finance, supra [in English].

    Senegal (SEN)

    Code général des impôts annoté (Editions juridiques africaines 1990).

    Loi № 92-40 du 9 juillet 1992 portant Code générale des impôts.

    Seychelles (SYC)

    The Business Tax Act, 1987, Supplement to Official Gazette, Jan. 1, 1988.

    Decree № 11 of 1978, The Income Tax Assessment Decree, as amended by Act № 1 of 1979, reprinted in 35 TLW.

    Trades Tax Act № 19 of 1985, Supplement to Official Gazette of Jan. 6, 1986.

    Sierra Leone (SLE)

    Income Tax Act, № 1 of 1943, ch. 273, reprinted in The Income Tax Act (as amended to Dec. 31, 1992) (unofficial consolidation).

    The Sales Tax Decree, 1995, N.P.R.C. Decree № 5, Supplement to the Sierra Leone Gazette, vol. CXXVI, № 16, Apr. 13, 1995.

    Singapore (SGP)

    CCH International publishes a one-volume loose-leaf service (Singapore Revenue Legislation) containing the tax laws of Singapore.

    ITA—Act № 39 Income Tax Act of 1947, as amended through Act № 20 of 1991, Cap. 134, reprinted in The Statutes of the Republic of Singapore, Singapore Ministry of Finance, Revenue Division 1992, Government Printers (rev. ed. 1992), reprinted in Peter Owyoung, Gim Hong, and Laurence Chan, Handbook of Singapore Tax Statutes (Butterworths) (Malayan Law Journal 1989) [hereinafter Handbook] and in TLW (as amended through Act № 32 of 1995).

    Act № 2 of 1992 Income Tax (Amendment) Act 1992, reprinted in Republic of Singapore, Government Gazette Acts Supplement, Mar. 13, 1992.

    Act № 32 of 1995, Income Tax (Amendment) Act 1995, Government Gazette № 34 (Oct. 1995).

    Act № 19 of 1931, Estate Duty Act, as amended through Act № 14 of 1984, Cap. 96, reprinted in The Statutes of the Republic of Singapore, Government Printer, 1985 revised ed., and in Handbook, supra.

    Act № 31 of 1993, The Goods and Services Tax Act 1993, reprinted in Singapore, Government Gazette Acts Supplement, № 28, 1993.

    Act № 16 of 1929, Stamp Duties Act, Cap. 312 of 1985 ed., reprinted in The Statutes of the Republic of Singapore, Government Printer 1986, and in Handbook, supra.

    Act № 36 of 1967, Economic Expansion Incentives (Relief from Income Tax) Act, as amended through Act № 37 of 1984, Cap. 86, reprinted in The Statutes of the Republic of Singapore, (Government Printers), 1985 revised ed., and in Handbook, supra.

    Act № 2 of 1965, Payroll Tax Act, Cap. 223 of 1985 ed., id.

    Ordinance № 40 of 1950, Betting and Sweepstake Duties Act, as amended through Act № 10 of 1981, Cap. 22 of 1986 ed., id.

    Act № 8 of 1966, Cinematograph Film Hire Duty Act, Cap. 40 of 1985 rev. ed., id.

    Ordinance № 39 of 1950, Entertainments Duty Act, Cap. 94 of 1985 rev. ed., id.

    Ordinance № 36 of 1952, Private Lotteries Act, as amended through Act № 31 of 1961, Cap. 250 of 1985 rev. ed., id.

    Act № 39 of 1968, Statutory Boards (Taxable Services) Act, as amended through Act № 1 of 1984, Cap. 318 of 1985 rev. ed., id., reprinted in Handbook, supra.

    Property Tax Act (ch. 254, 1985 rev. ed.), reprinted in Handbook, supra.

    Property Tax (Surcharge) Act (ch. 255, 1985 rev. ed.).

    Slovak Republic (SVK)

    ITA—Zákon o Daniach z Príjmov (Income Tax Law), Zákon Federalneho zhromazdenia CSFR c.286/1992 Zb. of Apr. 28, 1992, as amended by Zákon c.626/1992 Zb., Dec. 15, 1992, reprinted in Sústava Daní a Poplatkov od roku 1993 (Ing. Jozef Troják, CSc. a kolektív 1993) [in Slovak].

    Zákon o Dani z Pridanej Hodnoty (Value Added Tax Law), Zákon Federalneho zhromazdenia CSFR c.222/1992 Zb Apr. 16, 1992, as amended by Zákon c.595/1992 Zb., Nov. 26, 1992, id.

    Zákon o Spotrebných Daniach (Excise Tax Law), Zákon Federalneho zhromazdenia CFSR c.213/1992 Zb. of Apr. 16, 1992, as amended by Zákon c.595/1992 Zb., Nov. 26, 1992, id.

    Zákon O Správe Daní a Poplatkov a O Zmenách v Sústave územnych Finančnych Orgánov (Law on the Administration of Taxes and Fees and on Financial Organs), Zakon SNR c. 511/1992 Zb., Sept. 30, 1992, id.

    Zákon O Dani Nehnutel’ností (Law on Real Estate Tax), Zákon Slovenskej narodnej rady c 317/1992 Zb., Apr. 29, 1992, id.

    Zákon O Dani z Dedičstva, Dani z Darovania a Dani z Prevodu a Prechodu Nehnutel’ností (Law on Inheritance Tax, Gift Tax, and the Tax on the Transfer of Real Property), Zákon Slovenskej narodnej rady c.318/1992 Zb., May 4, 1992, id.

    Zákon o daňovych poradcoch a Slovenskej Komore daňovych poradcov (Law on Tax Advisers and the Slovak Chamber of Tax Advisers), № 78, Jan. 29, 1992, 1992 zb. částka 20, strana 507.

    Slovenia (SVN)

    In addition to income tax, sales tax, payroll taxes, property tax, and inheritance and gift tax are imposed.

    Zakon o Dohodnini (Income Tax Law), Uradni List Republike Slovenije № 71, Dec. 30, 1993 [in Slovenian].

    PT—Zakon o Davku od Dobička Pravnih Oseb (Law on the Profit Tax of Legal Persons), Uradni List Republike Slovenije № 72, Dec. 31, 1993 [in Slovenian, in English].

    Zakon o davkih občanov (Law of Tax on Citizens) Sept. 28, 1988, Official Gazette Uradni List № 36 of Oct. 21, 1988, as amended by Law № 343 Official Gazette № 8, Mar. 3, 1989, and Law № 300 Official Gazette № 7 of Feb. 4, 1993 [in Slovenian].

    Solomon Islands (SLB)

    The Acts of Parliament 1982 of the Solomon Islands, Government Printing Works, Honiara, Solomon Islands, contains an index of legislation in force as of the end of 1982. The following tax laws are included (we do not list the amending acts):

    Customs and Excise (Cap. 58).

    Income Tax (Cap. 61).

    Stamp Duties (Cap. 64).

    Sales Tax Act 1990, amended by Act № 16 of 1995, The Sales Tax (Amendment) Act 1995 (Honiara, Govt. Printer).

    The Goods Tax Act 1992, № 9 of 1992, Government Printer, amended by The Goods Tax (Amendment) Order 1996, Legal Notice № 84, Government Printer.

    Somalia (SOM)

    Trattamento fiscale degli atti da prodursi al Pubblico Registro Automobilistico (tax treatment of the documents required to be presented to the Motor Vehicles Registry), Law of Jan. 1, 1960, n. 1 rep., reprinted in Abdullahi Darman Ali, Raccolta Delle Disposizioni Legislative Vigenti in Somalia in Materia Fiscale at 95 (as amended to July 31, 1985) [in Italian].

    Trattamento fiscale delle concessioni di pubblici servizi (tax treatment applicable to public service contracts), Law of Jan. 1, 1960, n. 2 rep, id.

    Legge relativa all’imposta sugli spettacoli (Law Governing the Entertainment Tax), Dec. 21, 1965, n. 23, id.

    Imposta sulla circolazione degli autoveicoli (Tax on the Use of Motor Vehicles on Public Roads), Decreto Legislativo, Dec. 28, 1965, n. 4, id.

    Imposta di Bollo (Stamp Tax), Decreto Legislativo, Dec. 7, 1966, n. 6, id.

    Testo Unico delle leggi sulle Imposte Dirette, Decreto Legislativo, Nov. 5, 1966, n. 5 (Body of Laws on Direct Taxation 1966), id. at 165, reprinted in TLW (as amended to 1986) [in English].

    Decreto Legge Ordinamento delle tasse sulle Assicurazioni in Libia e nell’Africa Orientale Italiana (Taxation System Applicable to Insurance in Libya and Italian East Africa), Mar. 9, 1939, XVII, n. 1935), id.

    Decreto Legge Determinazione delle Tasse di licenza dei generi di monopolio (Law Concerning Taxes on Monopoly Goods Licenses), Feb. 23, 1959, n. 3, id.

    Decreto Legge, Determinazione delle tasse di concessione governativa per il rilascio di passaporti ordinari e di lasciapassare per l’estero, nonché di carte di frontiare (Decree/Law Concerning Taxes on Government Concessions for the Issuance of Ordinary Passports and International Laissez-Passer Documents and Identity Cards), Oct. 25, 1960, id.

    Legge, Determinazione di una nuova tariffa delle tasse di concessione governativa sulle autorizzazioni per la detenzione e porto di armi in genere, sulle licenze di vendita di armi e relativo munizionamento (Law Concerning the Setting of New Tax Rates for Government Concessions for Authorizations to Possess and Bear Arms in General and for Licenses to Sell Arms and Ammunition), Dec. 10, 1960, id.

    Legge, Determinazione di nuove aliquote delle tasse di concessione governativi per il rilascio di certificati di idoneità alla conduzione di autoveicoli in genere (Law Setting New Tax Rates for Government Concessions for the Issuance of Certificates of Proficiency for Drivers of Vehicles in General), Jan. 27, 1961, id.

    Legge, Norme sull’immigrazione (Immigration Law/Regulations), Jun. 27, 1966, id.

    Diritti e tasse del Decreto Legge, n. 7 [Estensione e modificazione del “Codice Marittimo”] (Fees and Taxes Imposed Under Decree-Law № 7 of Nov. 1, 1966: Extensions and Amendments to the Maritime Code), Nov. 1, 1966, id.

    Legge, Tasse governative sulle concessioni di licenze di caccia delle tabelle 19–24 e 25 annesse alla legge sulla protezione della fauna (caccia) e del patrimonio forestale (Government Taxes on the Granting of Hunting Licenses under Schedules 19—24 and 25, Annexed to the Law Governing the Protection of Animals and Forest Land), Jan. 25, 1969, id.

    Legge, Unificazione delle tasse scolastiche (Unification of School Taxes), Apr. 8, 1971, n. 31, id.

    Legge, Norme sulla documentazione amministrativa, sulla legalizzazione e autentificazione di firme—Ministero Affari Esteri (Regulations Governing Administrative Documentation and the Authentication of Signatures: Ministry of Foreign Affairs), Nov. 14, 1972, id.

    Decreto Legge Facilitazioni fisçali a favore delle società a partecipazione statale (Tax Facilities for Government and Parastatal Enterprises), Mar. 4, 1963, id.

    Decreto Legislativo Limiti massimi delle imposte delle tasse e dei diritti indicati nell’art. 30 della Legge 14 Agosto 1963, n. 19, sulle Amministrazioni Municipali (Upper Limits to the Taxes and Charges Imposed Pursuant to Article 30 of Law № 19 of Aug. 14, 1963 on Municipal Authorities), Jun. 9, 1965, id.

    Legge Norme sull’accertamento e sulla repressione di violazioni delle leggi finanziarie (Regulations Governing the Investigation and Suppression of Violations of Financial Laws), Aug. 1, 1966, id.

    Legge Concessioni di agevolazioni fiscali alla S.P.A. Somali Airlines (Concession of Tax Facilities to SPA (Somali Airlines)), July 24, 1970, id.

    Legge N. 58, Gestione finanziaria di imprese ed enti pubblici (Financial Management of Public Enterprises and Agencies), July 31, 1972, id.

    Legge N. 67, Norme sul trasferimento del diritto di proprietà immobiliarie (Regulations Governing the Transfer of Real Estate Property Rights), July 27, 1972, id.

    Legge sulla definizione dei contesti fiscali delle Imposte e tasse indirette (Law Governing the Settlement of Fiscal Issues Arising from Indirect Taxation), Sep. 21, 1972, id.

    South Africa (ZAF)

    In addition to the taxes listed below, stamp duty and company duties apply.

    ITA—Income Tax Act № 58 of 1962, as amended by Income Tax Act № 21 of July 1995, reprinted in Tax Handbook 1995–96 (E Damziger. EM Stack, Digma 5th ed. 1996) (published by Butterworths), and in TLW (as amended through Act 49 of 1996).

    Act № 89 Value-Added Tax Act, 1991, Government Gazette № 13307 of June 12, 1991, as amended by Taxation Laws Amendment Act № 20 of 1994 reprinted in Tax Handbook 1995–96 (E Damziger. EM Stack, Digma 5th Ed. 1996).

    Estate Duty Act № 45 of 1955, as amended by Taxation Laws Amendment Act № 37 of 1995, id.

    Transfer Duty Act № 40 of 1949, as amended by Taxation Laws Amendment Act № 37 of 1995, id.

    Spain (ESP)

    In addition to the sources cited below, the tax laws and regulations are collected in a thick one-volume paperback, G. Casado Ollero etal., Código Tributario (Aranzadi 1995) with 1996 supp. The publication Leyes Tributarias, cited below, is supplemented periodically.

    Ley General Tributaria (General Tax Law), B.O.E. de 31 de diciembre de 1963, reprinted in 1 Leyes Tributarias, Legislación Básica 27 (5th ed., Spain, Ministerio de Economía y Hacienda 1993) (as amended to Dec. 30, 1992) [in Spanish].

    Ley Orgánica 1/1985, de reforma del Código Penal en materia de delitos contra la Hacienda Pública (Organic Law Reforming those Provisions of the Criminal Code Relating to Offenses Against the Treasury), Apr. 29, 1995, B.O.E. № 103, de 30 de abril de 1985, id. at 425.

    Ley Orgánica 7/1982, de 13 de julio, que modifica la legislación vigente en materia de contrabando y regula los delitos e infracciones administrativas en la materia (Organic Law Amending Current Legislation on Contraband and Regulating Related Administrative and Other Offenses), July 13, 1982, B.O.E., 14 de mayo, 1 de agosto y 2 de octubre de 1982, id. at 429.

    IRPF—Ley 18/1991, del impuesto sobre la renta de las personas físicas (Personal Income Tax Law), June 6, 1991, B.O.E., 7 de junio y 2 de octubre de 1991, id. at 469.

    IS—Ley 61/1978, del impuesto sobre sociedades (Corporation Tax Law), Dec. 27, 1978, B.O.E. de 30 de diciembre de 1978, id. at 655.

    Law 43/1995 on Corporate Income Tax, Dec. 27, 1995 [in Spanish] available on Tax Base.

    Ley 19/1991, del Impuesto sobre el Patrimonio (Law Governing Wealth/Property Tax), June 6, 1991, B.O.E., 7 de junio y 2 de octubre de 1991, id. at 883.

    Ley 29/1987, del impuesto sobre sucesiones y donaciones (Law Governing the Tax on Bequests and Gifts), Dec. 18, 1987, B.O.E., 19 de diciembre de 1987, id. at 911.

    Real Decreto Legislativo 3.050/1980, por el que se aprueba el texto refundido de la ley del Impuesto sobre transmisiones patrimoniales y actos jurídicos documentados (Royal Legislative Decree Approving the Revised Law Governing Transfer Tax for Cases Where No Sales Tax Applies), Dec. 30, 1980, B.O.E., 3 de febrero y 17 de marzo de 1981, reprinted in 2 Leyes Tributarias, Legislación Básica 1025 (5th ed., Spain, Ministerio de Economía y Hacienda 1993) (as amended to Dec. 30, 1992) [in Spanish].

    Ley 37/1992, del Impuesto sobre el Valor Añadido (Value Added Tax), Dec. 28, 1992, B.O.E. de 29 diciembre de 1992, B.O.E., 8 de febrero de 1993, id.

    Ley 38/1992, de Impuestos Especiales (Law Governing Special Taxes), Dec. 28, 1992, B.O.E. de 29 de diciembre de 1992 y 19 de enero de 1993, id.

    Ley 8/1989, de Tasas y Precios Públicos (Law Concerning Government Pricing of Goods and Services), Apr. 13, 1989, B.O.E., de 15 de abril de 1989, id.

    Ley Orgánica 8/1980, de Financiación de las Comunidades Autónomas (Organic Law Governing the Financing of the Autonomous Regions of Spain), Sept. 22, 1980, B.O.E., 1 octubre de 1980, id.

    Ley 30/1983, reguladora de la cesión de Tributos del Estado a las Comunidades Autónomas (Law Regulating the Transfer of Central Government Tax Revenue to the Autonomous Regional Authorities), Dec. 28, 1983, B.O.E., 29 de diciembre de 1983, id.

    Ley 39/1988, reguladora de las Haciendas Locales (extracto) (Law Regulating Local Branches of the Treasury), Dec. 28, 1988, B.O.E., 30 de diciembre de 1988 y 14 de agosto de 1989, id.

    Ley 46/1984, reguladora de las Instituciones de Inversión Colectiva (Law Regulating Undertakings for Collective Investment), Dec. 26, 1984, B.O.E., 27 de diciembre de 1984, id.

    Ley 14/1985, de Régimen Fiscal de Determinados Activos Financieros (Law Governing the Taxation System Applicable to Certain Financial Assets), May 29, 1985, B.O.E. № 129, 30 de mayo de 1985, id.

    Ley 8/1987, de regulación de los Planes y Fondos de Pensiones (Law Regulating Pension Plans and Funds), June 8, 1987, B.O.E. № 137, 9 de junio de 1987, id.

    Real Decreto Legislativo 1.091/1988, por el que se aprueba el Texto Refundido de la Ley General Presupuestaria (Royal Legislative Decree Approving the Revised Text of the General Budget Law), Sept. 23, 1988, B.O.E. № 234, 29 de septiembre de 1988, id.

    Ley 20/1990, sobre Régimen Fiscal de las Cooperativas (Law Governing the Taxation System Applicable to Cooperatives), Dec. 19, 1990, B.O.E. № 304, 20 de diciembre de 1990, id.

    Ley 29/1991, de Adecuación de Determinados Conceptos Impositivos a las Directivas y Reglamentos de las Comunidades Europeas (Law Adapting Certain Categories of Taxation to the Regulations of the European Union), Dec. 16, 1991, B.O.E. Nos. 301, 17 de diciembre de 1991, y 34, 8 de febrero de 1992, id.

    Real Decreto-Ley 5/1994, por el que se regula la obligación de comunicación de determinados datos a requerimiento de las Comisiones Parlamentarias de Investigación (Royal Decree-Law Regulating the Requirement for the Submission of Certain Items of Information to Parliamentary Commissions of Inquiry), Apr. 29, 1994, B.O.E. n. 103, 30 de abril, 1994, reprinted in Leyes Tributarias, Legislación Básica, Boletín Informativo № 2 abril-mayo-junio 1994, at 247, Ministerio de Economía y Hacienda [in Spanish].

    Real Decreto-Ley 7/1996 sobre medidas urgentes de carácter fiscal y de fomento y liberalización de la actividad económica (Law Concerning Urgent Measures for the Promotion and Liberalization of Economic Activities), June 7, 1996 available on TaxBase.

    Real Decreto-Ley 8/1996, de medidas fiscales urgentes sobre corrección de la doble imposición interna intersocietaria y sobre incentivos a la internacionalización de las empresas (Law on Urgent Fiscal Measures Regarding the Adjustment of Intercompany Double Taxation at Domestic Level and Incentives to Enterprises to Enter the Global Economy), June 7, 1996, available on TaxBase.

    Sri Lanka (LKA)

    In addition to the taxes listed, stamp duties apply, as well as a 100 percent tax on the value of land transferred to a nonresident.12

    Act № 28 of 1979 Inland Revenue Act, reprinted in Inland Revenue Act of 1979 (as amended to Dec. 31, 1988), Department of Government Printing, 1990.

    Act № 11 of 1989, Inland Revenue (Amendment) Act, Gazette of the Democratic Socialist Republic of Sri Lanka (Supp. May 19, 1989), Department of Government Printing (1990).

    Act № 22 of 1990, Inland Revenue (Amendment) Act, Gazette of the Democratic Socialist Republic of Sri Lanka (Supp. June 15, 1990), Department of Government Printing (1990).

    Act № 42 of 1990, Inland Revenue (Amendment) Act, Gazette of the Democratic Socialist Republic of Sri Lanka (Supp. Nov. 30, 1990), Department of Government Printing (1990).

    Act № 49 of 1991, Inland Revenue (Amendment) Act, Gazette of the Democratic Socialist Republic of Sri Lanka (Supp. Dec. 27, 1991), Department of Government Printing (1991).

    Act № 27 of 1995 Inland Revenue (Amendment) Act, Nov. 22, 1995, available on TaxBase.

    Act № 13 of 1995, Surcharge on Income Tax (Amendment) Act.

    Act № 45 of 1990, Specified Certificate of Deposits (Tax and Other Concessions) Act, Gazette of the Democratic Socialist Republic of Sri Lanka (Supp. Dec. 7, 1990), Department of Government Printing (1990).

    Act № 52 of 1991, Defence Levy Act, Gazette of the Democratic Socialist Republic of Sri Lanka (Supp. Dec. 27, 1991), Department of Government Printing (1992).

    Act № 36 of 1992, Defence Levy (Amendment) Act, Gazette of the Democratic Socialist Republic of Sri Lanka (Supp. Aug. 7, 1992), Department of Government Printing (1992).

    Act № 40 of 1988, Betting and Gaming Levy Act, Gazette of the Democratic Socialist Republic of Sri Lanka (Supp. Nov. 25, 1988), Department of Government Printing (1988).

    Act № 5 of 1989, Tax Amnesty Act, Gazette of the Democratic Socialist Republic of Sri Lanka (Supp. May 12, 1989), Department of Government Printing (1989).

    Act № 13 of 1989, Excise (Special Provisions) Act, Gazette of the Democratic Socialist Republic of Sri Lanka (Supp. Oct. 12, 1989), Department of Government Printing (1989).

    Act № 5 of 1996, “Save the Nation” Contribution Act, Mar. 20, 1996 [available on TaxBase], amended by Act № 37 of 1996, Save the Nation Contribution (Amendment) Act.

    Act № 34 of 1996, Goods and Services Tax Act.

    Sudan (SDN)

    In addition to income tax, payroll tax (under the Social Security Act of 1974) and a sales tax of limited scope apply.

    Income Tax Law, 1971, reprinted in TLW (as amended to Sept. 1986) [in English].

    Zakat and Taxation Act 1984 (mimeo by Hassabo & Company, Certified Accountant, Khartoum) [in English].

    Suriname (SUR)

    Income tax, profit tax, net wealth tax, inheritance tax, excises, entertainment tax, lottery tax, tax on alumina production, motor vehicle license, wood export tax, and payroll taxes are imposed.

    Income Tax Law 1922, and Wage Tax Law reprinted in Surinaamse Belastingwetgeving: Wetten Dividendbelasting, Huurwaardebelasting, Inkomstenbelasting, Loonbelasting en AOV, 1996 (dividend tax, income tax, wage tax, old-age pensions fund), Ministerie van Financien, Directoraat der Belastingen, Paramaribo, 1996 [in Dutch] and in TLW (as amended to 1960).

    Swaziland (SWZ)

    In addition to those listed below, mineral rights tax, real estate transfer tax, and stamp duty are imposed.

    Income Tax Order № 21 of 1975, as amended by Income Tax Amendment Act № 6 of 1994, reprinted in The Income Tax Order 1975 amended by Act № 6 of 1996, Income Tax (Amendment) Act 1996.

    The Sales Tax Act № 12 of 1983, reprinted in The Kingdom of Swaziland, The Sales Tax Act, 1983, Webster Print (as amended to 1991).

    Sweden (SWE)

    All cites are to the Swedish Statute Book (Svensk Författningssamling (SFS)). The Swedish tax laws are reprinted in several sources, including Skatte-och taxering-för fattningarna, Skatteförvaltningen, Riksskatteverket, 1998 [in Swedish published annually]. The principal laws currently in effect are set forth below, arranged according to subject matter.

    1. Kommunal inkomstskatt—Municipal income tax

    Kommunalskattelag (1928:370)—Municipal income tax act.

    Lag (1979:417) om utdebitering och utbetalning av skatt vid ändring i rikets indelning i kommuner, landstingskommuner och församlingar—Act on charging and payment of tax when the division of municipalities and assemblies is altered.

    2. Kommunal inkomstskatt; kompletterande lagar—Municipal income tax; supplementary laws

    Lag (1993:1539) om avdrag för underskott av näringsverksamhet—Act on deductibility of losses incurred in business activity.

    Lag (1993:1536) om räntefördelning vid beskattning—Act on interest allocation for tax purposes.

    Lag (1982:60) om beräkning av avdrag på grund av avyttring av skog i vissa fall—Act on calculating deductions based on disposal of forests.

    Lag (1992:1643) om särskilda regler för beskattning av inkomst från handelsbolag i vissa fall—Act on certain deductions after sale of forests in certain cases.

    Lag (1993:1538) om periodiseringsfonder—Act on profit periodization reserves.

    Lag (1993:1537) om expansionsmedel—Act on expansion fund.

    Lag (1955:257) om inventering av varulager för inkomsttaxeringen—Act on physical counting of inventory for income tax purposes.

    Lag (1990:663) om ersättningsfonder—Act on replacement reserves.

    Lag (1979:611) om upphovsmannakonto—Act on originator account.

    Skogskontolag (1954:142)—Forest account act.

    Lag (1990:676) om skatt på ränta på skogskontomedel m.m.—Act on tax on interest from funds placed on forest account etc.

    Lag (1963:173) om avdrag för avgifter till stiftelsen svenska filminstitutet—Act on deduction for fees to Swedish Film Institute.

    Lag (1990:696) om avdrag för bidrag till stiftelsen Sveriges tekniska museum—Act on deductions for contributions to the foundation Sveriges tekniska museum.

    Lag (1970:599) om avdrag vid inkomsttaxeringen för avgifter till Värdepapperscentralen VPC Aktiebolag—Act on deductibility of fees to the Securities Register Centre VPC Ltd.

    3. Statlig inkomstskatt—National income tax

    SIL—Lag om statlig inkomstskatt (1947:596)—National income tax act.

    4. Statlig inkomstskatt; kompletterande lagar—National income tax; supplementary laws

    Lag (1994:1852) om beräkning av beskattningsbar inkomst på förvärvsinkomster vid 1996—1999 års taxeringar—Act on 5 percent national income surtax on earned incomes for the assessment years 1996-99.

    Lag (1996:761) om inkomstskatteregler m.m. med anledning av ändrade bestämmelser om aktiekapitalets storlek—Act on income tax rules due to changed rules on paid-in capital.

    Lag (1994:775) om beräkning av kapitalunderlaget vid beskattning av ägare i fåmansaktiebolag—Act on calculation of the capital base for tax purposes of shareholders in closely held limited companies.

    Lag (1951:733) om statlig inkomstskatt på ackumulerad inkomst—Act on national income tax on accumulated income.

    Lag (1993:1469) om uppskovsavdrag vid byte av bostad—Act on tax deferral when changing dwelling or permanent home.

    Lag (1993:1540) om återföring av skatteutjämningsreserv—Act on cancellation of tax deferral reserves.

    Lag (1990:655) om återföring av obeskattade reserver—Act on cancellation of equalization reserves.

    Lag (1992:1352) om återföring av allmän investeringsfond—Act on cancellation of general investment fund.

    Lag (1996:725) om skattereduktion för utgifter för byggnadsarbete på bostadshus—Act on tax reduction for construction expenditures concerning dwellings.

    Lag (1992:702) om inkomstskatteregler med anledning av vissa omstruktureringar inom den finansiella sektorn—Act on income tax rules concerning certain reorganizations within the financial sector.

    Lag (1993:5) om inkomstskatteregler vid statligt stöd till vissa kreditinstitut—Act on income tax rules concerning governmental support to certain financial institutes.

    Lag (1993:541) om inkomstbeskattning vid ombildning av värdepappersfond—Act on income taxation of reorganizations of investment funds.

    Lag (1994:760) om inkomstskatteregler vid ombildning av Landshypoteksinstitutionen—Act on income tax rules concerning reorganization of Landshypoteksinstitutionen.

    Lag (1992:1061) om inkomstskatteregler vid ombildning av föreningsbank till bankaktiebolag—Act on income tax rules concerning reorganization of an agricultural cooperative bank to a stock-corporation bank.

    Lag (1995:1623) om skattereduktion för riskkapitalinvesteringar—Act on tax reduction for risk capital investments.

    Lag (1992:1091) om inkomstskatteregler vid utskiftning av aktier i vissa fall—Act on income tax rules on distribution of stock in certain cases.

    Lag (1990:912) om nedsättning av socialavgifter—Act on reduction of social security fees.

    Lag (1990:659) om särskild löneskatt på vissa förvärvsinkomster—Act on special wage tax on certain earned incomes.

    Lag (1978:188) om avdrag vid inkomsttaxeringen för avgift för kostnadsutjämning enligt allmän pensionsplan m.m.—Act on tax deductions for fees for equalization of expenses according to general pension plans.

    Lag (1990:1427) om särskild premieskatt för grupplivförsäkring, m.m.—Act on special wage tax on group life insurances etc.

    Lag (1990:661) om avkastningsskatt på pensionsmedel—Act on tax on the yield from pension funds.

    5. Intern internationell skatterätt—Internal international tax law

    Lag (1996:161) med vissa bestämmelser om tillämpningen av dubbelbeskattningsavtal—Act containing certain rules on the application of double taxation treaties.

    Kupongskattelag (1970:624)—Dividend Withholding tax act (coupon tax).

    Lag (1994:1854) om beskattning vid gränsöverskridande omstruktureringar inom EG—EC cross-border reorganization tax act.

    Lag (1994:1853) om beskattning av europeiska ekonomiska intressegrupper—Act on taxation of European Economic Interest Groups.

    Lag (1984:974) om beskattning av utländska forskare vid tillfälligt arbete i Sverige—Act on taxation of foreign scientists temporarily working in Sweden.

    Lag (1986:468) om avräkning av utländsk skatt—Foreign tax credit act.

    Lag (1990:314) om ömsesidig handräckning i skatteärenden—Act on mutual assistance in tax cases.

    Lag (1991:586) om särskild inkomstskatt för utomlands bosatta—Act on special income tax for foreign residents.

    Lag (1991:591) om särskild inkomstskatt för utomlands bosatta artister m.fl.—Act on special income tax for nonresident artists and athletes.

    Lag (1976:661) om immunitet och privilegier i vissa fall—Act on privileges and immunities in certain cases.

    Lag (1988:1461) om skattefrihet för vissa ersättningar från Österrike—Act on tax exemption on certain compensations from Austria.

    6. Socialavgifter—Social security fees

    Lag (1962:381) om allmän försäkring—Act on social insurance.

    Lag (1981:691) socialavgifter—Act on social security fees.

    Lag (1994:1920) om allmän löneavgift—Act on general salary fees.

    Lag (1994:1744) om allmänna egenavgifter—Act on general payroll tax.

    Lag (1991:687) om särskild löneskatt på pensionskostnader—Act on special wage tax on pension costs.

    Lag (1993:931) om individuellt pensionssparande—Act on individual pension plans.

    Lag (1967:531) om tryggande av pensionsutfästelse m.m.—Act on safeguarding pension commitments etc.

    Lag (1991:1047) om sjuklön—Act on sick pay.

    7. Mervärdesskatt—Value added tax

    Mervärdesskattelag (1994:200)—Value added tax act.

    Mervärdesskatteförordning (1994:223)—Value added tax decree.

    8. Punktskatter—Excise taxes.

    Lag (1984:151) om punktskatter och prisregleringsavgifter—Act on excise duties and price regulation fees.

    Lag (1984:404) om stämpelskatt vid inskrivningsmyndigheter—Act on stamp duty to land registration administration.

    Lag (1994:1776) om skatt på energi—Energy tax act.

    Lag (1994:1564) om alkoholskatt—Alcohol tax act.

    Lag (1972:266) om skatt på annonser och reklam—Advertisement and advertising tax act.

    Lag (1991:1482) om lotteriskatt—Lottery tax act.

    Lag (1991:1483) om skatt på vinstsparande m.m.—Act on tax on profit savings.

    Lag (1972:280) om skatt på spel—Act on tax on gambling.

    9. Fastigheter—Real Estate

    Lag (1984:1052) om statlig fastighetsskatt—Act on national real estate tax.

    Lag (1997:441) om omräkningstal för 1998 års taxeringsvärden—Act on recalculation figures for the tax assessment value for 1998.

    Lag (1996:1231) om skattereduktion för fastighetsskatt i vissa fall vid 1997—2001 års taxeringar—Act on tax credits concerning national tax on real estate in certain cases on the assessment of tax of 1997-2001.

    Fastighetstaxeringslag (1979:1152)—Tax assessment value act.

    Lag (1994:1850) om direktavdrag för byggnader m.m.—Act on accelerated depreciation for buildings etc.

    10. Förmögenhet, arv och gåva—Wealth, inheritance and gift taxes

    Lag (1997:323) om förmögenhetsskatt—National wealth tax act.

    Lag (1997:324) om begränsning av skatt i vissa fall—Act on limitation of tax in certain cases.

    Lag (1941:416) om arvsskatt och gåvoskatt—Inheritance and gift tax act.

    11. Taxering, process—Assessment and procedure

    Skattebetalningslag (1997:843)—Tax payment act.

    Lag (1997:484) om dröjsmålsavgift—Act on fee for delay.

    Uppbördslag (1953:272)—Tax collection act.

    Lag (1984:668) om uppbörd av socialavgifter från arbetsgivare—Act on collection of social fees from employers.

    Taxeringslag (1990:324)—Tax assessment act.

    Lag (1990:325) om självdeklaration och kontrolluppgifter—Act on income tax returns and statements of earnings and tax deductions.

    Lag (1951:442) om förhandsbesked i taxeringsfrågor—Act on advance rulings in tax matters.

    Lag (1989:479) om ersättning för kostnader i ärenden och mål om skatt m.m.—Act on compensation for costs in tax cases.

    Lag (1995:575) mot skatteflykt—Tax avoidance act.

    Lag (1994:466) om särskilda tvångsåtgärder i beskattningsförfarandet—Act on certain measures in tax assessment procedure.

    Lag (1978:880) om betalningssakring for skatter, tullar och avgifter—Act on distraint order for securing payment for taxes, customs and fees.

    Lag (1982:188) om preskription av skattefordringar m.m.—Act on statute of limitations of tax claims.

    Lag (1957:686) om taxeringsväsendet under krigsförhållanden—Act on assessment authorities during war.

    Lag (1971:289) om allmänna förvaltningsdomstolar—Act on general administrative courts.

    Skatteregisterlag (1980:343)—Tax register act.

    Utsökningsregisterlag (1986:617)—Debt recovery register act.

    12. Ovriga—other

    Lag (1995:1592) om skatteregler för ersättning från insättningsgaranti—Act on tax rules on compensation from deposit guarantee.

    Stiftelselagen (1994:1220); transumt ur—Act on foundations (excerpt from).

    Lag (1971:118) om skattefrihet för ersättning till neurosedynskadade—Act on freedom of taxation for compensation to people suffering from thalidomide injuries.

    Lag (1978:401) om exportkreditstöd—Act on export credit subventions.

    Lag (1958:295) om sjömansskatt—Seamen’s tax act,

    Lag (1970:912) med anledning av riksskatteverkets inrättande—Act concerning the establishment of the National Tax Board,

    Lag (1985:354) om förbud mot yrkesmässig rådgivning i vissa fall, m.m.—Act on prohibition against professional advising in certain cases etc.

    Lag (1930:173) om beräkning av lagstadgad tid—Act on calculation of statutory time.

    Skattebrottslag (1971:69)—Tax penal code.

    Lag (1972:78) om skatt för gemensamt kommunalt ändamål—Act on tax for joint municipal purpose.

    Switzerland (CHE)

    The official citations are parallel citations to the official collection of federal law published in German, French, and Italian: Systematische Sammlung des Bundesrechts (SR) [in German], Recueil systématique du droit fédéral (RS) [in French], Raccolta sistematica del diritto federale (RS) [in Italian]. The index to the official collection with a list of all tax statutes can be found on the internet.

    Loi fédéral sur les droits de timbre (Stamp Taxes), June 27, 1973, RS/SR 641.10.

    Loi fédéral sur l’harmonisation des impôts directs des cantons et des communes (Federal Law Governing the Harmonization of Direct Taxation in Cantons and Communes), Dec. 14, 1990, RS/SR 642.14, amended by Law of Oct. 7, 1994.

    LIFD—Loi fédéral sur l’impôt fédéral direct (Federal Law Governing Direct Taxation), Dec. 14, 1990, RS/SR 642.11, reprinted in Ferdinand Zuppinger, Rebecca Brunner-Peters and Robert Umbricht, The Direct Federal Tax Law 1995 (Schulthess Polygraphischer Verlag, Zürich 1993) [in German, French, English, and Italian].

    Ordonnance sur l’imposition des personnes physiques domiciliées à l’étranger et exerçant une activité pour le compte de la Confédération ou d’autres corporations ou établissements de droit public suisse (Taxation of Foreigners), Oct. 20, 1993, RS/SR 642.110.8, reprinted in TLW at 39.

    Loi fédéral sur l’impôt anticipé (Federal Law Governing Estimated Taxation), Oct. 13, 1965, RS/SR 642.21.

    Ordonnance régissant la taxe sur la valeur ajoutée (Value Added Tax), June 22, 1994, RS/SR 641.201.

    Loi fédéral sur la taxe d’exemption du service militaire (Federal Law Governing the Tax on Exemption from Military Service), June 12, 1959, RS/SR 611.

    Loi fédérale sur l’imposition du tabac (Tax on Tobacco), Mar. 21, 1969, RS/ SR 641.31.

    Arrêté du conseil fédéral concernant un impôt fédéral sur les boissons (Federal Tax on Drinks), Aug. 4, 1934, RS/SR 641.411.

    Syrian Arab Republic (SYR)

    Law № 112, Lump Sum Income Taxation, Aug. 11, 1958 (as amended to June 30, 1989) [in Arabic].

    Legislative Decree № 85, Income Tax Law, May 21, 1949 (as amended to Dec. 31, 1988) [in Arabic].

    Law № 19, Expatriates’ Fees, June 3, 1990, reprinted in Ministry of Finance, 2 Collection of Tax Legislation [in Arabic].

    Law № 18, Consumption Expenditure Fee, Apr. 2, 1987, reprinted in id. [in Arabic].

    Legislative Edict № 117(1), Automobile Fees, Nov. 26, 1961, reprinted in id. [in Arabic].

    Law № 223(1) Fees on Equipment to Receive Television Broadcasts, July 17, 1960, reprinted in id. [in Arabic].

    Legislative Edict № 103(1), Cement Fee Statute, Aug. 18, 1940, reprinted in id. [in Arabic].

    Resolution № 125, Flammable Materials Tax Law, May 8, 1928, reprinted in id. [in Arabic].

    Law № 114, Sugar Restriction Statute, Dec. 19, 1944, reprinted in id. [in Arabic].

    Law № 165(1), Statute on Fees for Substances Containing Alcohol, May 8, 1945, reprinted in id. [in Arabic].

    Law № 203, Imposing a Computation Fee on Imported Goods, July 4, 1960, reprinted in id. [in Arabic].

    Legislative Edict № 151(1), Corporations and Commercial Establishments Outside the Territory of the United Arab Republic Which Have a Branch or an Agent Inside Syria, Mar. 3, 1952, reprinted in id. [in Arabic].

    Entertainment Statute, Jan. 8, 1938, reprinted in id. [in Arabic].

    Law № 80(1), Salt Exploitation Statute, Jan. 4, 1939, reprinted in id. [in Arabic].

    Law № 16/L.R.(1), Tobacco Monopoly Law, Jan. 30, 1935, reprinted in id. [in Arabic].

    Custom Revenues, Mar. 31, 1983, reprinted in id. [in Arabic].

    Law № 449(1), Army Fee on Electrical Power Allotment Bills, Jan. 15, 1949, reprinted in id. [in Arabic].

    Tajikistan (TJK)

    Zakon Respubliki Tadzhikistan ob Osnovakh Nalogovoy Sistemy (Law of the Republic of Tajikistan on the Fundamentals of the Tax System), reprinted in 500 Voprosov i Otvetov po Nalogam i Tsenam (NPMP “Amri Iln” 1994), July 20, 1994 [in Russian].

    Ukaz Prezidenta Respubliki Tadzhikistan ob obrazovanii Glavnogo Nalogovogo upravleniya Respubliki Tadzhikistan (Decree of the President of Tajikistan on the Creation of the Main Tax Bureau of the Republic of Tajikistan), Glavnoe Gosudarstvennoe Nalogovoe Upravlenie Respubliki Tadzhikistan (Main State Tax Authority of the Republic of Tajikistan), reprinted in Zakonodatelnye i Normativnye Akty po Nalogam i Nalogooblozheniyu 1994 [in Russian].

    Zakon № 590, Respubliki Tadzhikistan o gosudarstvennykh nalogovykh organakh Respubliki Tadkzhikistan (Law of the Republic of Tajikistan on State Tax Organizations of the Republic of Tajikistan), Mar. 14, 1992, id.

    Zakon № 977, Respubliki Tadzhikistan ob osnovakh nalogovoy sistemy (Law of the Republic of Tajikistan on the Basis of the Tax System), June 20, 1994, id.

    Zakon № 226, Respubliki Tadzhikistan o gosudarstvennoy registratsii predpriyatiy v Respublike Tadzhikistan i vzimanii platy za nee (Law of the Republic of Tajikistan on Government Registration of Enterprises in the Republic of Tajikistan and the Registration Fee), Feb. 21, 1991, id.

    Zakon № 498, Respubliki Tadzhikistan o naloge na dobavlennuyu stoimost (Law of the Republic of Tajikistan on the Value Added Tax), Jan. 6, 1992, id.

    Zakon № 500, Respubliki Tadzhikistan ob aktsizakh (Law of the Republic of Tajikistan on Excises), Jan. 6, 1992, id.

    Zakon № 502, Respubliki Tadzhikistan o podokhodnom naloge s grazhdan Respubliki Tadzhikistan, inostrannikh grazhdan i lits bez grazhdanstva (Law of the Republic of Tajikistan on Individual Income Tax for Citizens of the Republic of Tajikistan, Foreigners, and Those Without Citizenship), Jan. 6, 1992, id.

    Zakon № 494, Respubliki Tadzhikistan o nalogooblozhenii vladel’tsev transportnykh sredstv i drugikh samokhodrykh mashin i mekhanizmov (Law of the Republic of Tajikistan on Taxes for Owners of Means of Transportation and Other Vehicles), Jan. 6, 1992, id.

    Zakon Respubliki Tadzhikistan o plate za zemlyu (Law of the Republic of Tajikistan on Payments for Land), Mar. 8, 1992, id.

    Zakon № 710, Respubliki Tadzhikistan o tamozhennoy tarife (Law of the Republic of Tajikistan on Customs Tariffs), Nov. 25, 1992, id.

    Zakon № 877, Respubliki Tadzhikistan nalogoblozheniya dokhodov ot strakhovoy deyatel’nosti (Law of the Republic of Tajikistan on the Taxation of Profits from Insurance Activities), Dec. 27, 1993, id.

    Zakon № 889, Respubliki Tadzhikistan o nalogakh na imushestvo fizicheskikh lits (Law of the Republic of Tajikistan Relating to Property Taxes on Physical Persons), Dec. 27, 1993, id.

    Zakon № 895, Respubliki Tadzhikistan o dorozhom fonde (Law of the Republic of Tajikistan on the Road Fund), Dec. 27, 1993, id.

    Ukaz № 278, Prezidiuma Verkhovnogo Soveta Respubliki Tadzhikistan o vvedenim spetsialnogo naloga (Decree of the Supreme Soviet of the Republic of Tajikistan on the Implementation of Special Taxes), June 18, 1994, id.

    Zakon № 1001, Respubliki Tadzhikistan o naloge na pribyl’ predpriyatiy i organtzatsiy (Law of the Republic of Tajikistan on the Taxation of Corporations and Organizations), July 21, 1994, id.

    Tanzania (TZA)

    The annual finance acts have made amendments to the tax laws listed below.

    Income Tax Act № 33 of 1973 (as amended to Jan. 28, 1991), reprinted in TLW.

    The Sales Tax Act, 1976, № 13 of 1976, Nov. 12, 1976.

    The Stamp Duty Act, 1972, № 20 of 1972, Aug. 18, 1972.

    The Hotel Levy Act, 1972, № 23 of 1972, Aug. 18, 1972.

    The Business Licensing Act, 1972, № 25 of 1972.

    The Training Levy (Imposition) Act, 1972.

    The Road Tolls Act, 1985, № 13 of 1985, Oct. 21, 1985.

    The Foreign Commercial Vehicles (licensing) Act, 1970, № 23 of 1970, June 29, 1970.

    The Motor Vehicles (Tax on Registration and Transfer) Act, 1972, № 21 of 1972, Aug. 18, 1972.

    The Port Service Charge Act, 1973, № 11 of 1973, July 23, 1973.

    The Video Business Regulation Act, 1988, № 6 of 1988, Nov. 23, 1988, Gazette of the United Republic of Tanzania, № 13, Vol. 70 (March 31, 1989) (Act Supplement).

    The Payroll Levy Act, 1985, № 12 of 1985, Oct. 21, 1985.

    The Airport Service Charge Act, 1962, № 26 of 1962, July 11, 1962.

    The Car Benefit Tax Act, 1991, № 19 of 1991, Dec. 30, 1992.

    Act № 1 of 1996, Finance Act, 1996, Acts Supplement to the Gazette of the United Republic of Tanzania, Vol. 77, № 21 (May 1996) (Dar es Salaam, Govt. Printer).

    Thailand (THA)

    In Thailand, the tax legislation is contained in one Revenue Code. The taxes included are income tax, VAT, specific business tax, and stamp duty. Excises are governed by separate legislation.

    RC—The Act Promulgating the Revenue Code, B.E. 2481, reprinted in The Revenue Code as amended up to February 1995 (V.T. Associates trans., ACREV, Lawyers, Auditors and Tax Consultants: Bangkok, 1995) [in English].

    Excise Tax Act, B.E. 2527, reprinted in Technical Services Division, Excise Dept., Excise Tax Act (Aug. 1985).

    Emergency Decree Amending the Excise Tariff Tax, B.E. 2527, reprinted in Technical Services Division, Excise Dept., Emergency Decree Amending the Excise Tariff Act (Aug. 1985).

    Togo (TGO)

    Code général des impôts (General Tax Code), reprinted in Code général des impôts 1985, Ministère de l’economie et des finances [in French], as amended by the following laws and ordinances:

    • Loi de Finances № 86-01 portant modifications du Code général des impôts (Appropriation and Finance Law amending the General Tax Code), Jan. 6, 1986, Ministère de l’Economie et des Finances [in French].

    • Loi № 87-01 portant Loi de finances pour la gestion 1987 (Budget Law for FY 1987), Journal Officiel, numéro spécial du 29 janvier 1987 [in French].

    • Loi № 88-01 portant Loi de finances pour la gestion 1988 (Budget Law for FY 1988), Ministère de l’Economie et des Finances [in French].

    • Loi № 89-10 portant modification du Code général des impôts (Law Amending the General Tax Code), May 5, 1989, Ministère de l’Economie et des Finances [in French].

    • Loi № 89-26 portant modification du Code général des impôts du 7 novembre 1989 (Law Amending the General Tax Code), Ministère de l’Economie et des Finances [in French].

    • Loi № 89-32 complétant les articles 186, 252, 539 de la Loi № 83/22 du 30 décembre 1983 portant Code général des impôts (Law Supplementing Articles 186, 252, and 539 of Law № 83/22 of Dec. 30, 1983 Establishing the General Tax Code), Nov. 30, 1989, Ministère de l’Economie et des Finances [in French].

    • Loi № 90/01 portant Loi de finances pour la gestion 1990 (Law № 90/ 01, the Budget Law for FY 1990), Ministère de l’Economie et des Finances [in French].

    • Ordonnance № 90-07 portant modification de la Loi № 89-26 du 7 novembre 1989 ayant modifié le Code général des impôts (Order Amending Law № 89/26 of Nov. 1989 amending the General Tax Code), Ministère de l’Economie et des Finances [in French].

    • Loi № 91/01 portant Loi de finances pour la gestion 1991 (Law № 91/ 01, the Budget Law for FY 1991), Ministère de l’Economie et des Finances [in French].

    • Ordonnance № 93/005 portant Loi de finances pour la gestion 1993 (Budget Law for FY 1993), Ministère de l’Economie et des Finances [in French].

    • Loi № 94/001 portant Loi de finances pour la gestion 1994 (Budget Law for FY 1994), Ministère de l’Economie et des Finances [in French].

    • Loi № 95-011 portant Loi de finances pour la gestion 1995 (Budget Law for FY 1995), Ministère de l’Economie et des Finances [in French].

    • Loi № 96-005 portant Loi de finances pour la gestion 1996 (Budget Law for FY 1996), Ministère de l’Economie et des Finances [in French].

    • Loi № 96-015 portant Loi de finances pour la gestion 1997 (Budget Law for FY 1997), Ministère de l’Economie et des Finances [in French].

    Tonga (TON)

    Income Tax Act № 17 of 1976, Cap. 68 (as amended to 1988), Nov. 8, 1976, V.V. Misi Government Printer, 1976.

    • Income Tax (Amendment) Act № 4 of 1990.

    • Income Tax (Amendment) Act № 7 of 1992.

    Sales Tax Act № 3 of 1986, Cap. 69, Government Publisher (1988 Ed.).

    • Act № 6 of 1990 (to amend the Sales Tax Act 1986).

    Port and Service Tax of 1949 (as amended to 1954), Cap. 95 V.V. Misi Government Printer, 1949.

    Port and Service Tax Act of 1976, Tonga Government Gazette Extraordinary, June 14, 1976.

    Fuel Sales Tax Act № 6 of 1964, Cap. 97 V.V. Misi Government Printer, 1964.

    Act № 3 of 1985 to Amend the Fuel Sales Tax Act, Government Publisher, Sept. 27, 1985.

    Act № 4 of 1985 to impose an Accomodation and Entertainment Sales Tax, V.V. Misi Government Printer, Sept. 27, 1985.

    Trinidad and Tobago (TTP)

    Trinidad and Tobago: Consolidated Index of Statues and Subsidiary Legislation (as of Jan. 1, 1996) has been published by the Faculty of Law Library, University of the West Indies, Barbados. This lists the amending laws, and so they will not be listed here. The tax laws are as follows:

    Corporation Tax Act (ch. 75:02), reprinted in Taxation, Vol. 1: Principal Legislation (Ernst & Young, 1995 and revised periodically) (as amended).

    Excise (General Provisions) Act (ch. 78:50).

    Fiscal Incentives Act 1979 (ch. 85:01), reprinted in Taxation, Vol. II: Supplementary Legislation (Ernst & Young, 1995 and revised periodically) (as amended).

    Hotel Development Act (ch. 85:02), reprinted in id.

    Housing Act (ch. 33:01), reprinted in id.

    Income Tax Act (ch. 75:01), reprinted in TLW (as amended to Mar. 1995), and in Taxation, Vol. I: Principal Legislation (Ernst & Young, 1995 and revised periodically) (as amended).

    Income Tax (Federal Endowments) Act 1960 (ch. 151).

    Income Tax (in Aid of Industry) Act (ch. 85:04), reprinted in Taxation, Vol. II: Supplementary Legislation (Ernst & Young, 1995 and revised periodically) (as amended).

    Lands and Buildings Taxes Act (ch. 76:04).

    Miscellaneous Taxes Act (ch. 77:01).

    Petroleum Production Levy and Subsidy Act (ch. 62:02), reprinted in Taxation, Vol. II: Supplementary Legislation (Ernst & Young, 1995 and revised periodically) (as amended).

    Petroleum Taxes Act (ch. 75:04), reprinted in id.

    Provisional Collection of Taxes Act (ch. 74:01).

    Rates, Taxes, and Licenses (Payments by Cheque) Act (ch. 74:02).

    Stamp Duty Act (ch. 76:01).

    Tax Appeal Board Act (ch. 4:50).

    Tax Information Exchange Agreements Act 1989, № 30/1989.

    Taxes Exemption Act (ch. 76:50).

    Unemployment Levy Act (ch. 75:03), reprinted in Taxation Vol. II: Supplementary Legislation (Ernst & Young, 1995 and revised periodically) (as amended).

    Value Added Tax Act 1989, as amended to Feb. 1994, reprinted in VAT Administration Centre, Inland Revenue, Value Added Tax Act 1989 (Government Printery 1994), and in Value Added Tax (Ernst & Young, 1995 and revised periodically) (as amended).

    Tunisia (TUN)

    Income Tax Code 1990, Official Journal № 88 of Dec. 31, 1989, reprinted in TLW (as amended to March 1995); Loi № 89-114 du 30 décembre 1989 portant promulgation du code de l’impôt sur le revenu des personnes physiques et de l’impôt sur les sociétés, reprinted in Ministère des finances, Direction générale des études et de la legislation fiscales, Recueil des textes relatifs aux impôts directs (as amended to Sept. 1, 1994) [in French].

    Law № 61, June 2, 1988, Code de la taxe sur la valeur ajoutée (Value Added Tax Code), Journal officiel de la République Tunisienne № 39 of June 10, 1988 [in French].

    Law № 62, June 2, 1988, Revising Consumption [Excise] Tax System, Official Journal, June 10, 1988 [in Arabic].

    Code de l’impôt de la patente et de l’impôt sur les bénéfices des professions non commerciales (Code Governing the Tax on Business Profits and the Tax on Earnings from Noncommercial Occupations), reprinted in 1 Textes fiscaux, Ministère des finances, Direction générale des impôts (as amended to Mar. 31, 1984).

    La Contribution personnelle d’Etat et impôt sur les traitements et salaires (Personal Income Tax and the Tax on Earned Income), reprinted in 2 Textes fiscaux, Ministère des finances, Direction générale des impôts (as amended to Mar. 31, 1984).

    Taxes sur les chiffres d’affaires (Turnover Tax), Dec. 29, 1955, reprinted in 3 Textes fiscaux, Ministère des finances, Direction générale des impôts (as amended to Apr. 15, 1984).

    Impôts sur les revenus des valeurs mobilières (Taxes on Income Derived from Transferable Securities), Dec. 23, 1918, reprinted in 4 Textes fiscaux, Ministère des finances, Direction générale des impôts (as amended to Dec. 31, 1985).

    Loi № 62-71, Impôt agricole (Agricultural Tax), Dec. 31, 1962, reprinted in 5 Textes fiscaux, Ministère des finances, Direction générale des impôts (as amended to Dec. 31, 1985).

    Loi № 62-72 La Déclaration unique des revenus (Single Income Tax Return), Dec. 31, 1962, id.

    Loi № 93-53 Code des droits d’enregistrement et de timbre, May 17, 1993, Journal officiel № 39, May 25, 1993, reprinted in Code des droits d’enregistrement et de la timbre (Imprimerie officielle de la République Tunisienne, 1993).

    Loi № 95-109, Dec. 25, 1995, portant loi de finances pour la gestion 1996, 138 Journal Officiel, № 104 (Dec. 1995).

    Loi № 96-113, Dec. 30, 1996, portant loi de finances pour la gestion 1997, 139 Journal Officiel, № 105 (Dec. 1996).

    Turkey (TUR)

    In addition to the taxes listed below, inheritance and gift tax, payroll tax, property tax, and stamp duty are imposed.

    Income Tax Law, reprinted in 42 TLW (as amended to Aug. 1989) [in English].

    Corporation Tax Law, id.

    Value-Added Tax Law, id.

    Turkmenistan (TKM)

    For a list of presidential decrees on taxation in addition to the laws and decrees listed below, see IBFD, Turkmenistan in Taxation and Investment in Central and East European Countries (May 1996 supp.). In addition to those listed below, tax on income of small-scale enterprises, tax on security transactions, excises, tax on vehicle owners, natural resource tax, property tax, excess wage tax, state insurance contributions, state duty, and business licenses are imposed.

    Statute on Income Taxation of the Citizens of Turkmenistan, Foreign Citizens, and Persons Without Citizenship, Confirmed by Decree of the President, Jan. 6, 1992. № VII-252 [in English].

    Decree on Amendments and Additions to the Statute on Personal Income Tax on Citizens of Turkmenistan, Foreign Citizens, and Stateless Persons, Nov. 22, 1993 [in English].

    Law № 895-XII of Turkmenistan on the Profit Tax, Oct. 8, 1993 [in English].

    Law № 894-XII of Turkmenistan on Value-Added Tax, Oct. 8, 1993 [in English].

    Statute № VII-250 on the State Tax Service, Jan. 6, 1992 [in English].

    Decree of the President of Turkmenistan № 1613 on Amendments and Additions to Decree № 513 of the President of Turkmenistan of Jan. 1, 1992 on Excise Taxes, Dec. 1993 [in English].

    Statute on the Procedure for Levying and the Rates of the Tax on Owners of Means of Transportation [in English].

    Statute № VII-250 on the State Tax Service, confirmed by Decree of the President of Turkmenistan, Jan. 6, 1992 [in English].

    Uganda (UGA)

    ITA—The Income Tax Act, 1997, № 11 of 1997, 90 Uganda Gazette № 81, Acts Supplement № 8 (Dec. 31, 1997).

    The Stamps Act of 1915, as amended to 1965, Cap. 172, Stamps, Laws of Uganda, Government Printer, Entebbe.

    The East African Excise Management Act (Cap. 28, rev. 1970).

    The Excise Tariff Act of 1954 (as amended to 1962), Cap. 174, Excise Tariff, Laws of Uganda, Government Printer, Entebbe.

    Value Added Tax Statute, 1996, reprinted in Statutes Supplement № 5 to the Uganda Gazette, № 21, Vol. 89, Apr. 4, 1996.

    The Uganda Revenue Authority Statute, 1991, Statutes Supplement № 5 to the Uganda Gazette № 36, Aug. 16, 1991.

    The Tax Appeals Tribunals Act, 1997, № 12 of 1997, 90 Uganda Gazette № 81, Acts Supplement № 1 (Dec. 31, 1997).

    The Investment Code 1991.

    The Finance Statute, 1988 (June 23, 1988) (Statute № 4: 1988) (amends various tax laws).

    The Finance Statute, 1993 (July 20, 1994) (Statute № 9: 1994) (amends various tax laws).

    The Finance Statute, 1994 (Nov. 15, 1994) (Statute № 17: 1994), Uganda Gazette, Statutes Supplement, Dec. 2, 1994 (amends various tax laws).

    Ukraine (UKR)

    We cite to a newspaper source (Golos Ukrainy) and to the session laws (Vidomosti, or Vedomosti in Russian). The list below is reasonably complete, except that it does not list the amending laws in all cases. At the moment, the tax laws of Ukraine do not seem to have been published in one book in an up-to-date version; they can be found in periodicals (for example, the weekly Vse o Buchgalterskom Uchete, published in Russian by the Association of Professional Accountants of Ukraine).

    Law of Ukraine on the System of Taxation, Journal of the Supreme Council of Ukraine, 1997, № 16, Art. 119, amended by Law № 221/97-VR, Apr. 19, 1997; Law № 303/97-VR, June 4, 1997.

    Decree of the Supreme Soviet of Ukraine on the Fundamental Provisions of Tax Policy and Tax Reform in Ukraine, Dec. 13, 1995, FBIS-SOV-96-023-S.

    Edict of the Cabinet of Ministers of Ukraine on Collection of Overdue Taxes, Non-Tax Payments, reprinted in Pravda Ukrayiny, Feb. [in English], FBIS-Database, FBIS-USR-93-027, Mar. 10, 1993.

    Law № 314/97-BP, June 5, 1997, On cancelling and restructuring taxpayers’ tax liabilities as of March 31, 1997.

    Edict of the Cabinet of Ministers on Local Taxes and Tax Collection, reprinted in Golos Ukrainy, June 11, 1993 [in Ukrainian] and in FBIS-USR-93-083, July 6, 1993.

    Law № 283/97 Pro opodatkuvania pributku pidpriemstv (Law of the Ukraine on Taxation of the Profits of Enterprises) May 22, 1997, reprinted in Vse o Buchgalterskom Uchete (Feb. 4, 1998) (as amended) [in Russian].

    Law № 168/97-BP on Value Added Tax, Apr. 3, 1997, amended by Law № 403/97-BP (June 27, 1997), Law № 460/97-BP (July 16, 1997), Law № 535/ 97-BP (Sept. 19, 1997), Law № 550/97-BP (Sept. 26, 1997), Law № 573/97-BP (Oct. 15, 1997), Law № 644/97-BP (Nov. 19, 1997), Law № 698/97-BP (Dec. 5, 1997), Law № 770/97-BP (Dec. 23, 1997), Law № 794/97-BP (Dec. 30, 1997), Law № 799/97-BP (Dec. 30, 1997) (published in Feb. 4, 1998 issue of Vse o Buchgalterskom Uchete as amended) [in Russian].

    Cabinet of Ministers Edict on Personal Income Tax (Dec. 26, 1992), reprinted in Golos Ukrayiny (Voice of Ukraine), Jan 11, 1993, at 9—12 [in Ukrainian], translated in FBIS-USR-93-020, Feb. 25, 1993 [in English].

    Decree of Cabinet of Ministers № 18-92 On Excise Duty (Dec. 26, 1992).

    Law № 30/96-BP On Rates of Excise and Customs Duty on Imported Cigarette Products (Feb. 6, 1996).

    Law № 178/96-BP, On Rates of Excise and Customs Duty on Ethyl Alcohol and Alcoholic Beverages (May 7, 1996).

    Law № 216/96-BP Rates of Excise and Customs Duty on Automobiles and Tires (May 24, 1996).

    Law № 313/96-BP On Rates of Excise and Customs Duty on Several Goods (Products) (July 11, 1996)

    Law № 527/97-BP On Excise Duty on Alcoholic Beverages and Cigarette Products (Sept. 11, 1997)

    Law № 1963-XII, Zakon o naloge c vladel’tsev transpornykh sredstv i drugikh samokhodnykh mashin i mekhanizmov (Law on Taxation of Automobile Owners), Dec. 11, 1991, Vedomosti Ukrainy, Mar. 17, 1992, № 11, item 150 [in Russian], amended by Law № 75/97-BP, Feb. 18, 1997.

    Edict on Export Tax: Addendum 1993, reprinted in Golos Ukrayiny, Jan. 28, 1993, FBIS-Database, FBIS-USR-93-027, Mar. 10, 1993 [in English].

    Decret Cabinetu Ministriv Ukrainiy Pro Dershavne Meto (Decree of the Ukrainian Cabinet of Ministers on State Duty, Feb. 12, 1993, Golos Ukrainiy, № 27, Feb. 12, 1993 [in Ukrainian], FBIS-USR-93-033 [in English].

    Law № 2535-XII On Payment for Land (July 3, 1992).

    Presidential Decree № 78594 On Establishment of Royalty Payments for Oil and Gas Extracted in Ukraine (Dec. 21, 1994).

    Decree of Cabinet of Ministers № 24-93 On Tax on Trade (Mar. 17, 1993).

    Geological Fee: Resolution of Cabinet of Ministers № 645 of Aug. 11, 1995 on Payment for Geological Works Carried out at the Expense of the State Budget. Minerals Code of Ukraine, Law № 132/94-BP (July 27, 1994).

    Fee on Natural Resource Use: Minerals Code, Law № 132/94-BP, Water Code, Law № 213/95-BP (June 6, 1995), Forest Code, Law № 3852-XII (Jan. 21, 1994).

    Environmental Pollution Fee: Law № 1264-XII (June 25, 1991).

    Chernobyl Fund contributions: Law № 386/97-BP (June 20, 1997).

    Law № 402/97-BP On Fee for Obligatory Social Insurance (June 26, 1997).

    Law № 400/97 On Fee for Obligatory State Pension Insurance (June 26, 1997).

    Resolution of Cabinet of Ministers On Formation of State Innovation Fund (Feb. 18, 1992).

    Law № 98/96-BP On Licensing for Certain Kinds of Entrepreneurial Activity (Mar. 23, 1996).

    Decree of Cabinet of Ministers № 56-93 On Local Taxes and Fees (May 20, 1993).

    United Arab Emirates (ARE)

    According to Taxes and Investment in the Middle East (IBFD, 1990), “the only tax imposed in the United Arab Emirates is the tax on the income of corporate bodies. Each emirate has its own income tax decree. . . .” Coopers Lybrand, 1997 International Tax Summaries adds: “In practice, however, no income or other tax is levied on companies. The main exceptions are taxes on the profits of oil companies and foreign banks. . . .”

    United Kingdom (GBR)

    It has historically been frustrating to deal with the tax legislation of the United Kingdom because of the practice of enacting freestanding provisions in finance acts, rather than consolidating all the relevant provisions into one law and making textual amendments to that law. Parliament has responded to this problem by enacting some massive consolidations over the past decade, including the Income and Corporation Taxes Act 1988, the Taxation of Chargeable Gains Act 1992, and the Value Added Tax Act 1994. The problem has not completely gone away because there are still nontextual amendments, but these consolidations have made it much easier to navigate through the relevant statutes.

    All the tax laws (together with statutory instruments, extrastatutory concessions, and other official pronouncements) are published in a two-volume set by CCH International (1996-97 U.K. Tax Statutes and Statutory Instruments). Butterworths publishes the Orange Tax Handbook and the Yellow Tax Handbook, which between them contain all the tax laws. The Taxes Acts is a multivolume set (six volumes for the 1994 edition) covering income tax, corporation tax, and capital gains tax, published annually by Inland Revenue and available from HMSO. The Taxes Acts includes provisions of various annual Finance Acts that have not been codified into the principal tax acts, as well as miscellaneous enactments that contain provisions relevant to taxation. These are not listed below. The Taxes Acts also includes the text of the regulations relevant to the tax laws it covers.

    Taxes Management Act 1970, reprinted in Great Britain, Board of Inland Revenue, The Taxes Acts: Income Tax, Corporation Tax and Capital Gains Tax (HMSO 1994) (as amended to 1994).

    ICTA—Income and Corporation Taxes Act 1988, reprinted in id.

    CAA—Capital Allowances Act 1990, reprinted in id.

    TCGA—Taxation of Chargeable Gains Act 1992, reprinted in id.

    Value Added Tax Act 1994, reprinted in The Law Reports Statutes 1994, pt. 5, The Incorporated Council of Law Reporting for England and Wales, Cap. 23 at 1393, and Orange Tax Handbook, Butterworths, 1995-96.

    Inheritance Tax Act of 1984, reprinted in 43 Halsbury’s 1068 and Orange Tax Handbook, Butterworths, 1995-96.

    Stamp Duties, reprinted in Orange Tax Handbook, Butterworths, 1995-96.

    National Insurance Contributions, reprinted in Orange Tax Handbook, Butterworths, 1995-96.

    Insurance Premium Tax, reprinted in Orange Tax Handbook, Butterworths, 1995-96.

    Hydrocarbon Oil Duties Act 1979, as amended by Finance (No. 2) Act 1979 and subsequent Finance Acts. See European Commission, Inventory of Taxes Levied in the Member States of the European Communities (16th ed. 1996).

    TA—Tobacco Products Duty Act 1979, as amended by the Finance Acts 1981 and 1988. See id.

    Matches and Mechanical Lighters Duties Act 1979, as amended by the Finance Act 1981. See id.

    Alcoholic Liquor Duties Act 1979, as amended by subsequent Finance Acts and the Alcoholic Liquors (Amendment of Enactments Relating to Strength and to Units of Measurement) Order 1979 and the Isle of Man Act 1979 and the Customs and Excise Management Act 1979. See id.

    Oil Taxation Act 1975, Petroleum Revenue Tax Act 1980 and Oil Taxation Act 1983, as amended by annual Finance Acts. See id.

    Betting and Gaming Duties Act 1981, as amended by the Finance Acts 1982, 1986, 1987, and 1990. See id.

    Bingo and Gaming Duties Act 1981, as amended by the Finance Acts 1982, 1983, and 1986. See id.

    Vehicles (Excise) Act 1971, as amended by subsequent Finance Acts. See id.

    Car Tax Act, 1983. See id.

    United States (USA)

    IRC—Internal Revenue Code, reprinted in The Complete Internal Revenue Code: All the Income, Estate, Gift, Employment, Excise, Procedure and Administrative Provisions (Research Institute of America, Inc., 1995) (as amended to Dec. 31, 1994).

    Uruguay (URY)

    The tax laws of Uruguay have been consolidated into a single tax code, most recently by Decree 338/96 (Sept. 1996). The full text is available at www.parlamento.gub.uy.

    Código Tributario (Tax Code), Texto Ordenado 1996, reprinted in IBFD-CIAT [in Spanish].

    Uzbekistan (UZB)

    Tax laws, regulations, and other materials are published in the Nalogovy Vestnik Uzbekistana (in Russian), which is published by the State Tax Committee of the Republic of Uzbekistan, Tashkent. There is also a private publisher (Fund, Alleya Paradov Street 2, Tashkent, Uzbekistan 700000; fax: 394268 or 442021) of a series called Nalogovoye Zakonodatelstvo Respubliki Uzbekistan (Tax Legislation of the Republic of Uzbekistan), also in Russian. There is also an English translation of various legislation, including tax legislation, published by Uzbekiston, Tashkent (1992), ISBN: 5-640-01410-5. This translation includes the law on taxes from enterprises, associations, and organizations (as amended through 1992).

    In April 1997, the Parliament adopted a tax code that replaced the existing tax laws. The new code is heavily influenced by the codes of Kazakhstan and the Kyrgyz Republic. While the existing laws continue to apply until the new code comes into effect, we have not listed the precode laws here since they are now presumably transitory (those with a particular interest should check the resolution putting the new code into effect to ascertain the effect on existing laws).

    Nalogovii Kodeks Respubliki Uzbekistan (Tax Code of the Republic of Uzbekistan) (presumably will be published by one or more of the sources cited above, as well as in the official gazette and in newspapers) [in Russian].

    Law on Payment of Fees for State Services, Documents and Privileges (State Duty), reprinted in Khalq Sozi, Jan. 15, 1993 [in Uzbek, English], FBIS-USR-93-042, Apr. 5, 1993.

    Vanuatu (VUT)

    The Business Licence Act № 25 of 1983, Official Gazette of Oct. 17, 1983 (as amended to 1985), Ministry of Finance.

    The Hotel and Licensed Premises Tax Act № 2 of 1982, Ministry of Finance.

    Venezuela (VEN)

    In addition to the citations below, the tax legislation and commentary (as well as other economic legislation) are available in a series of publications in loose-leaf, CDROM, or Internet format from Legis Editores, C.A., Zona Industrial La Urbina, Calle 8, Edificio Ródano, Piso 3, Caracas; fax: 242-5547 or 241-6451.

    Código Orgánico Tributario (General Tax Code), Texto Ordenado of Aug. 4, 1992, as amended by Decreto № 189 of May 25, 1994, reprinted in IBFD-CIAT [in Spanish] and in G.O. № 2.992 Extraordinario del 3 de agosto de 1982 [in Spanish].

    Ley de Impuesto sobre la Renta (Income Tax Law), Gaceta Oficial de la República de Venezuela of Sept. 9, 1993 [in Spanish], as amended by Decreto Ley № 188 of May 25, 1994, reprinted in IBFD-CIAT [in Spanish] and reprinted in 45 TLW (as amended to Dec. 1993).

    Decreto № 3113 Ley de Reforma Parcial de la Ley de Impuesto sobre la Renta (Law on the Partial Reform of the Income Tax Law), Aug. 26, 1993, Gaceta Oficial № 4.628 Extraordinario del 9 de septiembre de 1993 [in Spanish].

    Decreto № 3.266 Ley de Impuesto a los Activos Empresariales (Law on the Taxation of Business Assets), Nov. 26, 1993, Gaceta Oficial de la República de Venezuela № 4.654 of Dec. 1, 1993 [in Spanish].

    Decreto que Establece el Impuesto al Consumo Suntuario y a las Ventas al Mayor (Decree Establishing a Tax on Luxury Consumption and Wholesale Sales), Gaceta Oficial de la República de Venezuela of May 27, 1994 [in Spanish] (as amended up to Sept. 9, 1994), reprinted in IBFD-CIAT [in Spanish].

    Value Added Tax Law reprinted in 45 TLW (as amended to Dec. 1993) [in English].

    Vietnam (VNM)

    We cite to two sources, both in English. Selection of Fundamental Laws and Regulations of Vietnam [hereinafter FLRV] is a paperback; Foreign Investment Laws of Vietnam [hereinafter FIL] is a multivolume loose-leaf published by Phillips Fox Solicitors, Melbourne, Australia. Some laws are also available on a website (http://coombs.edu.au) [hereinafter website].

    Law on Corporate Income Tax passed by the National Assembly on June 30, 1990 and amended and added to on June 6, 1993, reprinted in FLRV, 2nd ed., THÊ GIOI Publishers, Hanoi, 1995, p. 344 [in English].

    Law on Export and Import Duties passed by the National Assembly in Dec. 1991, amended and added to on July 5, 1993, reprinted in FIL, FLRV.

    Ordinance on Natural Resources Tax passed on Mar. 30, 1990 (excerpts), reprinted in FIL, FLRV.

    Law on Turnover Tax, passed by the National Assembly on June 30, 1990, amended and added to on July 5, 1993, reprinted in FIL, FLRV.

    Law on Special Sales Tax, passed by the National Assembly on June 30, 1990, amended and added to on July 5, 1993, reprinted in FIL, FLRV.

    Ordinance on Income Tax on High Income Earners passed on May 19, 1994, reprinted in FIL, FLRV.

    State Council Ordinance on Residential Housing Land Tax (June 29, 1991), reprinted in FIL.

    Law on Governing Taxes on Land-Use Right Assignment, promulgated July 5, 1994 [available on website in English].

    Law on Value Added Tax, № 02/1997/QH9, proclaimed by Presidential Order № 57/L/CTN, May 22, 1997 (goes into effect Jan. 1, 1999), reprinted in Ministry of Finance, Law on Value Added Tax, Law on Business Income Tax (National Political Publishing House, Hanoi 1997) [in Vietnamese, English].

    Law on Business Income Tax, № 03/1997/QH9, proclaimed by Presidential Order № 57/L/CTN, May 22, 1997 (goes into effect Jan. 1, 1999), reprinted in id.

    Law on Foreign Investment, Nov. 12, 1996, proclaimed by Presidential Order № 52/L/CTN (effective Nov. 23, 1996).

    Yemen, Republic of (YEM)

    Law № 70 of 1991, The Production, Consumption, and Services Tax Law, amended by Presidential Decree № 4 of 1995, Feb. 19, 1995.

    Law № 31 of 1991, Income Tax Law.

    Zambia (ZMB)

    The laws of Zambia are listed, and some are available in full text on the website of the Zambia Legal Information Institute (ZamLII) (http://lii.zamnet.zm:8000).

    ITA—Income Tax Act 1966, reprinted in Unofficial Consolidation of the Income Tax Act, Republic of Zambia, Department of Taxes, Ministry of Finance (as amended to Mar. 31, 1988) and in 46 TLW (as amended to Apr. 1, 1996), amended by the following:

    • Act № 17 of 1988 to amend the Income Tax Act.

    • Act № 28 of 1988 to amend the Income Tax Act, Income Tax (Amendment) Act of 1989.

    • Act № 15 of 1990 to amend the Income Tax Act.

    • Act № 29 of 1990 to amend the Income Tax Act.

    • Act № 12 of 1991 to amend the Income Tax Act.

    • Act № 11 of 1992 to amend the Income Tax Act.

    • Act № 4 of 1993 to amend the Income Tax Act.

    • Act № 14 of 1994.

    • Act № 2 of 1995.

    • Act № 18 of 1995.

    • Act № 27 of 1995.

    • Act № 7 of 1996, Income Tax (Amendment) Act, 1996.

    Act № 4 of 1995, Apr. 28, 1995, Value Added Tax Act, 1995 [available on website].

    Value Added Tax (Commencement) Order, 1995, Supplement to the Republic of Zambia Government Gazette of Apr. 28, 1995, Government Printer.

    Value Added Tax (Applications for Registration) (№ 2) Order, 1995, Supplement to the Republic of Zambia Government Gazette of May 19, 1995, Government Printer.

    Value Added Tax (Zero Ratings) Order, 1995, June 30, 1995, Government Printer.

    Value Added Tax (Exemptions and Zero Ratings) Order, 1995, June 2, 1995, Government Printer.

    Value Added Tax (Exemptions) Order, 1995, June 9, 1995, Government Printer.

    Value Added Tax (Exemptions) (№ 3) Order, 1995, July 14, 1995, Government Printer.

    Value Added Tax (Exemptions) (№ 4) Order, 1995, Supplement to the Republic of Zambia Government Gazette of Aug. 18, 1995, Government Printer.

    Act № 12 of 1984, Property Transfer Tax Act, 1984, amended by Act № 4 of 1994.

    Personal Levy Act (Cap. 432), amended by Act № 15 of 1993, Act № 8 of 1994.

    Act № 17 of 1994, Stamp Duty (Repeal) Act.

    Customs and Excise Act (Cap. 662).

    Act № 28 of 1993, Apr. 30, 1993, Zambia Revenue Authority Act, 1993 [available on website].

    Act № 39 of 1993, Sept. 8, 1993, The Investment Act, 1993 [available on website].

    Act № 34 of 1994, Mineral Royalty Tax Act, 1994.

    Zimbabwe (ZWE)

    In addition to income and sales tax, estate duty, payroll taxes, property tax, real estate transfer tax, stamp duty, and company fees (registration and increase in authorized share capital) are imposed.

    Income Tax Act (ch. 181), reprinted in The Income Tax Act, as amended on Dec. 31, 1994 (Government Printer, Harare), reprinted in TLW (as amended to Feb. 1989).

    Sales Tax Act, Cap. 184 (as amended to Nov. 1984), reprinted in Sales Tax Act, Government Printer, and in Sales Tax Act [ch. 184] (publisher unknown) (as amended through 1994).

    Act № 4 of 1996, Finance Act, 1996, 74 Government Gazette № 27 (May 1996).

    Index

    Abatement

    • see Deductions

    Ability to pay

    • income tax, 497; principle of, 22–23; property tax, 265–67; wealth tax, 294–98

    Absorption, 644

    Abuse of law, 36, 49, 52–53

    Accelerated depreciation

    • see Depreciation

    Accounting

    • accrual, 620; cash, 600,620; method of, 535–37; regulation of, 149; relation to legal profession, 142–43; relation between financial and tax accounting, 599–602, 920; small business, 525

    Accrual accounting

    • see Accounting

    Ad valorem rates of excise, 249–51, 263

    Advance corporate tax, 771; 864–69

    Advance payments

    • income taxation of, 632–34; of tax, 667–69; VAT treatment of, 193

    Advance rulings

    • see Rulings

    Affiliated companies, 743–44, 759, 760–61, 772–74, 776–79, 781–98, 992–93, 998–99, 1002–03, 1008–18

    Agent

    • supply by, 190; withholding, 573–75, 582–83

    Agriculture, 664–65

    • presumptive taxation, 425–26; source rule, 737; treatment under wealth transfer tax, 329

    Alimony, 542

    Allowances

    • apportionment, 731; claim forms in the United Kingdom, 585; denial to nonresidents, 750; personal, 571–72; see also Deductions

    Amalgamation, 898

    Amortization, 683, 687 n.24, 696, 701

    • see also Depreciation

    Annuality

    • principle of, 18

    Annuities, 613–14; 748–49

    Antiabuse legislation

    • general, 44–53; specific, 53–54, 179 n.54; see also Antiavoidance

    Antiavoidance

    • Australian contract rules, 47; Australian income tax law, 42; Belgium, 37; dual-resident companies, 733; earning periods for contribution payments, 377; House of Lords on, 41; specific domestic rules on, 53, 54; tax planning, 37; trusts, 956–59; United Kingdom provisions, 39; United Kingdom VAT provision, 179

    Appeals

    • see Disputes

    Arm’s-length principle

    • see Transfer pricing

    Assessable income, 502 n.28

    Assets tax, 412–21, II:xxx n.34

    Attorney-client privilege, 146–48

    Audits

    • administration of direct taxes and VAT taxes, 223; and VAT refund claims, 229; investigations, 104; professional privilege in cases of, 147; representation of taxpayer in cases of, 150; statutory provisions, 97; taxpayer’s rights to a reasonable, 111

    Australia

    • antiavoidance rules, 47–49; fringe benefits tax, 744; interpretation of tax laws, 41–42; regulation of tax advisors, 153, 161; tax policy process, 5

    Automobiles

    • excise tax on, 263

    Averaging, 548–50

    Avoidance

    • see Tax avoidance

    Avoir fiscal, 863, 875

    Bad debts

    • deduction for, 629–32; VAT treatment of, 221–22

    Balance sheet, 447–55, 466–75, 599–600, 676–78

    Bankruptcy, 900, 912

    Basis, 648 n.167

    Belgium

    • interpretation of tax laws, 36–37; principle of equality, 20–21; tax advisors, 161; taxpayer rights, 30

    Benefits in kind

    • see Fringe benefits

    Best judgment assessments, 406–08

    Brackets

    • see Rate brackets

    Branch profits tax, 774–76

    Bunching

    • see Averaging

    Burden of proof, 107–08

    Business

    • definition of, for VAT, 197–98; income from, 524–26, 598–99, 737–40, 763–64

    Cadastre, 268–69

    Canada

    • accounting, 678–79; goods and services tax, 165 n.6; taxpayer rights, 29–30; tax policy process, 5; VAT treatment of immovable property, 237

    Capital

    • income from, 612–17

    Capital flight, 725, 756, 759–61, 800–01, 809

    Capital gains, 646–56, 662–64

    • of nonresidents, 766–67; partnerships, 941–46; source rule, 743–44; trusts, 960–61

    Capital losses, 662

    Carryover

    • disallowed interest, 786–88; see also Losses

    Cash basis accounting

    • see Accounting

    Chargeable income

    • see Taxable income

    Charitable contributions, 327, 330, 533–34

    Chile

    • PAYE, 591–92

    China, People’s Republic of

    • power to legislate, 16 n.3; VAT, 165 n.5

    Churches, 28, 208 n.127

    Civil law

    • definition of employment, 509; interpretation style in civil law countries, 34; relation with tax law, 90–91

    Claim of right, 623–24

    Classical system, 822–29, 842–43, 845–48

    Codes, 80–82

    Collection of tax, forced, 108–09, 288

    Commentaries

    • administrative, 87

    Common law

    • concepts and terminology, 91–93, 168, 185, 199, 282 n.35; delegation of tax law making in the United States, United Kingdom, and Canada, 58–59; drafting style, 85; estate tax, 292; legal status of partnerships, 175, 927–28; marital property, 303; private law, 90 n.54; probate, 321; responsibility for drafting legislation, 10; statutory interpretation, 34; trusts, 304–05; U.S. judicial doctrines and legal analysis, 44; U.S. tax code, 81

    Commonwealth countries, 85

    • judicial decisions, 12 n.9

    Company taxation, 768–79, 811–94

    Comparative law, xxiii, xxvii–xxviii, 4, 13, II:xxiii–xxxv

    • bibliography for, xxx; borrowing legal concepts, 12–13

    Completed contract method, 636

    Compliance with tax laws, 112–17, 406

    Composite tax, 496

    Conflict of interest, 9, 141

    Constitutional limitations, 20, 27–29, 403

    Consumer price index, 439 n.20

    Conversion

    • from exempt to taxable use, 243–44, II:xxxiii, 652–53

    Courts, 15,34–44

    • constitutional control, 19–29; review of rulings, 62

    Credit

    • income tax for lower-income filers, 570

    Crimes

    • tax, 133–34

    Criminal and civil investigations, 104

    Customs

    • and excise, 247, 254; and VAT, 194, 212–13

    Damages, 528–29

    Debt-equity ratio

    • see Thin capitalization

    Declaration of Taxpayer Rights, 29

    Declining-balance method

    • see Depreciation

    Deductions

    • business expenses, 84; charitable contributions, 330; conditioning on identification of payee, 103; denial for purposes of minimum taxable income, 431; denial for purposes of surrogate taxation, 74; excise on commercial or public vehicles, 263; expenses of illegal activities, 51; for input tax, 170, 172, 180, 196, 200, 209, 215, 217, 218, 220, 226; for local taxes, 68, 287; for tax advice, 153; limitations, 53–54, 436 n.6, 457–58; maintenance payments, 23; merchant marine capital construction fund, 80 n.29; pension contributions, 396–97; presumptive, 424; significant special, 564; social security tax, 371, 373–74, 382, 392–94; special withholding adjustments, 574–75; standard, 568; tax shelter losses, 25, 47; wealth transfer tax, 294, 307, 314, 317 n.113, 325–27, 330, 331

    Delegation of law-making authority, 17

    Dependents, 542–46, 559

    Depletion, 711–12

    Depreciation, 682–717

    • methods, 702–11; pooled, 714–17

    Destination principle

    • for excise, 248–49, 255; for VAT, 171–72

    Developing and transition countries

    • definition of, xxvii n.l; international tax priorities, 808–10; persons responsible for drafting in, 72; tax law revision, xxvii; tax legislative process in, 1–2; VAT exemption for imports of equipment, 207; PAYE, 565

    Diplomats, 504, 520, 731

    • excise exemption for, 258; VAT exemption for, 206–07

    Direct costs

    • see Absorption

    Directives, European Union

    • excise, 246 n.l; merger, 897 n.6, 898 n.13; parent-subsidiary withholding, 773–74; VAT, 165 n.3

    Disputes

    • representation of taxpayer in, 150–51; resolution of, 105–08, 372–73; under treaties, 728, 807–08

    Dissolution

    • see Liquidation

    Dividends

    • source rule, 740–41; withholding tax, 670, 765, 811–94

    Domicile, 729

    Double-dipping, 793–95

    Double-entry bookkeeping

    • see Accounting

    Double taxation, avoidance of

    • net wealth tax, 314–15; social security, 384–91; wealth transfer tax, 324–25; 725, 732–33, 736–37, 756–59

    Drafting

    • domestic tax rules, 729; expertise in, 13; persons involved in, 10, 11–14

    Employee

    • definition of, 91, 92, 355, 356–60; provision of tax services by, 146; VAT treatment of, 189–90

    Employer

    • benefit of lag time between withholding and transfer of taxes, 574; identification of, 364–65

    Employment income, 509–24, 745–48, 767–68

    • PAYE withholding on secondary, 570–71; taxed by schedular PAYE, 565; withholding: see PAYE

    Equality

    • principle of, 17, 19–21,35

    Estate and gift tax

    • see Wealth transfer taxes

    Estimated tax

    • see Advance payments of tax

    Exchange restrictions, 31 n.74; see also Capital flight

    Excises

    • economic scope, 246–47, 248; history, 247–48; on alcohol, 260–61; on miscellaneous products, 263; on petroleum products, 259–60; on tobacco, 261–62; specific rates of excise, 249–51; taxable event, 253–57

    Exemptions

    • assets tax, 414–15, 417–18, 420–21; dependency, 28; diplomatic, 431; excise, 258–63; income tax, 504–05; inflation adjustment, 436; local power to introduce, 65; pensions, 397; property tax, 280–82, 289–90; to simplify administration, 115; VAT, 187 n.69, 202–09, 212, 216, 237, 239, 242–44, 343 n.13; wealth tax, 293, 294, 301, 302, 307–09, 311–13, 315, 317–20, 328–32, 338–39; welfare benefits, 399

    Expatriates, 745, 750–56

    Expenses

    • business, 605–12; employee, 512–15, 558; personal, 532–34

    Explanatory memorandum, 14, 86–88

    External signs of wealth, 426–29, 430–33

    Fair play

    • principle of, 21–22

    Family quotient system, 540, 543, II:xxix

    Federalism, 62–70, 265, 287

    FIFO, 644

    Finance lease, 659–62

    Financial services

    • VAT exemption of, 205–06

    Fixed base, 768

    Foreign currency, 622–23, 625–29

    • translation of accounts kept in, 460–62

    Foreign legal advisers, 11–14

    Foreign tax credit, 315, 325, 419–20, 757

    Forfait, 404, 422–24

    France

    • accounting, 677–78; antiavoidance rules, 49–50; effect of tax treaties, 728; forfaity 404, 422–24; framework for regulations, 57 n.194; history of VAT in, 164 n.l; income tax, II:xxviii-ix; interpretation of tax laws, 35–36; précis de fiscalité, 87, 88–89; preliminary agreements, 62; presumptive taxation based on lifestyle, 426–28; tax advisors, 161–62; taxpayer rights, 30–31

    Fraudulent conveyance, 109

    Fraus legis doctrine, 39

    Fringe benefits, 515–24, 561–62, 744–45

    • expatriates, 753–55; valuation, 508–09

    Gender discrimination, 89–90, 368

    Generation skipping, 319

    Germany

    • accounting, 676–77; antiavoidance rules, 50–52; constitutional limitations on taxation, 28–29; framework for regulations, 57 n.l95; hybrid simplecumulative PAYE calculation, 568; income tax, II:xxxiii; interpretation of tax laws, 37–38; organization of tax laws, 81; principle of ability to pay, 23; principle of equality, 20; regulation of tax advisors, 151–52, 162; retroactive legislation, 25–26; semifinal PAYE system, 571

    Gift tax, 333–39

    Gifts and bequests, income taxation of, 296, 527–28

    Global income tax, 495–99; withholding, 564 n.l

    Goods and services tax, 165 n.6

    Goodwill, 700–01

    Grantor trusts, 925 n.l, 956–59, 964–65

    Gross income, 502–04

    Gross receipts tax, 410–12

    Harmonized system, 253, 259, 260–63

    Horizontal equity, 497, II:xxii–iii

    Human rights

    • European convention on, 33

    Hungary

    • PAYE, 592–93

    Hybrid entities, 928 n.13, 932 n.39

    Illegal income, 532

    IMF

    • Articles of Agreement, 31; member countries, II:xxv; technical assistance by, xxiii, xxvii

    Immovable property

    • concept of, xxxi, 93, 270; depreciation, 699–700; income from, 737, 762–63; imputed income from, 531–32; taxation of, 264–91; VAT treatment, 186–88

    Imports

    • excise on, 249, 251, 253–55; VAT on, 171–72, 173, 196, 207–08

    Imputation systems, 843, 854–75

    Income

    • concept of, 495–99

    Income averaging

    • see Averaging

    Income shifting, 550–54

    Independent contractors, 522

    Indirect costs

    • see Absorption

    Indonesia

    • PAYE, 593; reorganizations, 908 n.45

    Inflation adjustment, 434–76

    • ad hoc adjustment of income tax, 443–44; global adjustment of income tax, 446–58, 466–76; of amounts expressed in national currency, 435–37; of nonbusiness income of individuals, 458–59; of personal consumption tax, 440–41; of wealth transfer tax, 331; partial adjustment of income tax, 444–46

    Information returns, 103

    Input credit (VAT), 172, 217–21

    In rem taxation of immovable property, 231–32, 278–80

    Installment sales, 634–35

    Integration, 769–71, 875–81

    Intercorporate dividends, 772–74, 852

    Interenterprise arrears, 192 n.84

    Interest, 614–15, 656–59

    • definition, 788–91; source rule, 740–41; withholding, 765–66; see also Thin capitalization

    Interest on late payment of tax, 110

    Internal audit of tax administration, 109–10

    International services, 745–48

    • VAT treatment of, 195–96

    Interpretation of tax laws, 33–44, 12 n.9, 169 n.26

    • administrative interpretation, 55–56, 83–86; by legislature, 33 n.83; drafting to anticipate, 83–86; interpretation acts, 87–88

    Inventory, 641–45, 701

    Investment funds, 969–85

    Investment incentives, 986–1020

    Investment tax credit, 702 n.120, 992–93

    Invoices, 169, 191–92, 224–25

    Israel

    • certification of returns by auditor, 158; presumptive taxation, 425–26

    Italy

    • ability to pay principle, 22–23; tax advisors, 162–63

    Itemized deductions, 512–15, 532–34, 558, 583

    Japan

    • certified tax accountants, 140–41; consumption tax, 165 n.4, 167 n.17

    Joint venture, 929, 931, 966

    Kenya

    • PAYE, 593–94

    Land

    • definition of, 270; VAT treatment, 186–88; see also Immovable property

    Language, 11–12, 168–69

    Lawyers

    • foreign, use of, 11–14; legal profession, 142–43; local, 13; representation by, 150–51; role in drafting, xxix, 5

    Legal basis for taxation, 16–17, 35

    • and prohibition on agreements with taxpayers, 18

    Legal person, 927–29

    • definition of, xxx; forms of, 91–92; partnerships as, 175–76; transition countries, 776–79

    Lesotho

    • presumptive tax based on lifestyle, 430–33

    Liberal professions, 525–26, 739

    Liens

    • see Tax liens

    Life insurance, 665, 739–40

    • wealth transfer tax treatment of, 328

    LIFO, 644–45

    Lock-in effect, 652, 656

    Long-term contracts, 635–37

    Loopholes, 38, 44–47

    Losses

    • carryover, 505 n.43, 618–19, 921–23

    Merger, 898, 910–11

    Minimum taxes, 402, 404–05

    Model laws, 93–94, 164, 166 nn.ll, 13, xxvi n.13

    Movable property

    • definition of, xxx; taxation of, 269

    Net operating loss

    • see Losses

    Net wealth tax

    • definition of taxpayer, 302–07; exemptions, 307–08; rates, 293–94, 309; taxation of entities, 303–07, 309–10; valuation, 312–14

    Net worth method of reconstructing income, 408–09

    Netherlands

    • antiavoidance rules, 52; interpretation of tax laws, 38–39; rulings authority, 61; tax advisors, 138, 163; PAYE, 586–88

    Nondiscrimination, 19–21, 31–32, 89–90, 173–74, 251; 801–04; see also

    • Gender discrimination

    Nonprofit organizations, 892

    • deduction for transfers to, under wealth transfer tax, 327; net wealth tax exemption, 307–08; property tax exemption, 281–82; VAT exemption of supplies by, 204–05

    Notice of assessment, 111

    OECD countries, 10, 105, 129, 240–42, 340–41

    Ombudsperson, 110

    Origin principle

    • for excise, 248; for VAT, 171–72

    Other income, 503–04, 526–32

    • source rule, 749

    Paragraphing, 78–79

    Parliament

    • consultation with, 7–8; power over taxation, 16–18; power to interpret law, 33 n.83

    Partnerships

    • VAT treatment of, 176; income taxation, 925–49

    PAYE, 556–63, 564–96

    Penalties, 96, 112–13, 117–34

    • for tax practitioners, 142, 154, 156–58; immunity from, when tax advisor is used, 158–60; immunity from, when tax agency wrongly advised taxpayer, 22; for tax fraud, 44

    Permanent establishment, 177 n.48, 762–64

    Personal service corporation, 552–53, 746–47

    Philippines, 496 n.2

    • PAYE, 594–95

    Physical person

    • defined, xxx

    Place of management, 733

    Pooled depreciation

    • see Depreciation

    Poverty trap, 397–99

    Précompte, 854 n.140, 863–64

    Private ruling

    • see Advance rulings

    Private sector, 3–5, 8–11, 141, 363

    Privatization, 265–66, 896–97

    Privileged communications, 146–48

    Progressivity, II:xxii, 530, 533, 547–48, 573

    Property

    • concept of, 93, 268, 282–285; taxation of, 269–70

    Property tax

    • definition of taxpayer, 289; exemptions, 281–82; rates, 285–87; taxable unit, 280–81, 285; valuation, 270–78, 288–89

    Proportionality

    • principle of, 22–24

    Public order

    • and administrative rulings, 61; principle of, 18–22

    Purpose

    • statement of, 74–75; tax treaties, 725–27

    Rate brackets, 440, 547–54

    • derivation of monthly withholding, 567

    Realization, 647–48

    Record keeping, 104, 379–80

    Refunds

    • VAT, 228–29

    Regulations, 17, 34, 56–60, 86–88, 223–24

    • hearings on, 102; publication, 100–01

    Religion, 28

    Rent, 617

    Reorganizations, 895–924

    • VAT treatment of, 183, 216–17

    Repairs, 640–41, 688–93

    Research and development, 645–46

    Reserves, 639–40

    Residence

    • change of, 761–62; definition, 729–34; dual, 732–33

    Retroactivity, 24–27, 33–34

    • of regulations, 27

    Returns, 103

    • certification by professional, 158; filing of in developing and transition countries, 584; filing thresholds in developing and transition countries, 577; penalty for preparer of, 157; preparation of, 150, 158; retroactivity of, 27; VAT, 226

    Revenue estimates, 3–4

    Reverse charge, 196

    Rollover relief, 652–55, 908–23

    Royalties, 615–17

    • source rule, 740–42; withholding, 766

    Rule of law, 15

    Rulings, 22, 61–62, 101–02

    Russia

    • PAYE, 565, 568, 573, 595–96; VAT, 165 n.9, 168 n.24, 172 n.32, 220 n.l48

    Sanctions

    • see Penalties

    Schedular income tax, 495–99

    • tax return filing system, 570; PAYE in the context of, 585

    Schedules, 80

    Scholarships, 528

    Sections

    • headings, 77; numbering of, 76

    Self-employment, 123, 355–56, 359, 381–82

    Services income, 745–48

    Settlor, 949

    Slovenia

    • principle of equality, 20

    Soak-uptax, 804 n.152

    Social Security tax, 340–400, 575–76

    Source, 734–49

    Spain

    • antiavoidance rules, 52–53; tax advisors, 163

    Stock dividend, 888

    Straight-line depreciation

    • see Depreciation

    Subject to tax, 757

    Supply (VAT)

    • by agents, 190; for consideration, 168–69; mixed, 191; of goods, 184–86; of services, 188–89; place of, 194–96; taxable, 168, 173, 184, 197–202; time of, 191–94; valuation of, 209–13

    Sweden

    • advance rulings, 62; filing requirement, 566

    Tachshiv, 424–25

    Tax

    • definition of, 345–48

    Taxable income, 501–02

    Tax adjudication

    • see Disputes

    Tax administration law, organization of, 96–100, 222

    Tax advisors

    • admission of legal persons, 143–44; conflicts of interest, 139–41; considerations in regulating, 136–48; international, regulation of, 144–46; model of full regulation of, 151–52, 154–56; partial regulation of, 156; role of, 135–36

    Tax avoidance

    • definition of, 44–45; international, 779–80, 796–98

    Tax base

    • assets tax, 412–17, 419, 421–22; excise, 247, 252; inflation adjustment, 435, 437–42, 444, 446, 459, 463; power to legislate, 17, 57, 65–69; presumptive, 401–03, 405–06, 409, 410, 426–29; social security, 366; statement in law, 75, 79; used for calculating penalty, 128; VAT, 198, 201, 222, 247; wealth tax, 293, 298

    Tax basis, 648 n.167

    Tax codes, 80–82

    Tax credits, 501 n.26, 554–58

    Tax evasion

    • definition of, 44

    Tax havens, 792–93

    Tax holidays, 990–91, 996–1000, 1002–03, 1019–20

    Tax liability

    • based on ability to pay, 22; calculation of, 567; collection of, 108–09, 288; determination of, 223, 278; inflation adjustment, 435, 440, 446, 452, 459; legal basis for, 18, 83; multiple owners, 289; retroactive, 24, 26; right to minimize, 39, 44–45, 52, 91; schedular system, 566; secondary, 322

    Tax liens, 108, 288

    Tax offsets

    • see Tax credits

    Taxpayer

    • definition of, 101, 175–77, 537–38, 888–92

    Taxpayer identification numbers, 180, 380

    Taxpayer rights, 29–31, 110–12

    Tax period, 356, 376, 534–35

    • for the PAYE, 573; in CIS countries, 578

    Tax planning, 37, 41, 55, 149, 412, 417, 418, 421, 733

    Tax policy

    • institutional responsibility for, 2 n.4, 6–7, 9–10, 14; private sector’s role in, 8–9; relation to drafting, 83; review process, 2–3

    Tax reform

    • Disciplines involved in, xxix, 4–6

    Tax reform process

    • in developing and transition countries, 1–2; need for collaboration in, 6–9

    Tax sparing, 721, 1013–16

    Tax unit, 538–41

    Territorial system, 729 n.21, 757

    Thin capitalization, 658, 784–88

    Threshold, for VAT registration, 177–79

    Transfer pricing, 781–84; see also Affiliated companies

    Transition countries

    • income tax, II:xxx–xxxii

    Treaties, 722–29

    • international, 31–33, 174, 315, 324, 391; relation to domestic law, 727–29; treaty-shopping, 795–96; OECD model, 723; UN Model, 723

    Trusts, 949–65

    Understandability of tax laws, 73–79

    United Kingdom

    • administrative interpretations, 60, 87; constitution, 18; costs of tax collection, 586; depreciation, 687–89; drafting process, 10 n.7; framework for regulations, 59–60; income tax, II:xxvi-xxvii; interpretation of tax laws, 39–41; tax advisors, 163; recomputation of the PAYE, 568; semifinal PAYE, 571–72

    United States

    • accounting, 678; constitutional provisions, 17–18; costs of tax collection, 586; depreciation, 690–91; discussion of VAT for, 166 n.11; drafting process, 6 n.6; framework for regulations, 58–59, 102 n.18; income tax, II: viii; interpretation of tax laws, 42–44; principle of equality, 21; principle of fair play, 22; regulation of tax advisors, 152–53, 163; retroactivity of tax legislation, 21 n.25, 25; section numbering in, 76; wage withholding tax, 565, 589–91

    VAT

    • economic scope, 169–70, 231–36; exemptions, 202–09; exporters, treatment of, 181; history of adoption, 164–67; land, treatment of, 186–88, 204, 234–45; national bank, supplies to, 216; rates, 213–14; registration for, 177–83; taxable persons, 175–77; transfer of ongoing business, 189 n.77, 216–17; wage withholding tax as a percentage of, 564–65; zero rate, 214–17

    Warehouses

    • definition, 253 n.23; for excise, 253–57

    Wealth transfer taxes

    • deductions, 325–27; disclaimers, 320–21; exclusions, 328–30; exemption for transfers to minor children, 318; generation skipping, 319; rates 293–94, 331–32; relief for tax on prior transfers, 318–19; spousal exemption, 316–18; valuation, 330–31

    Wear and tear

    • see Depreciation

    Welfare benefits, 529–31

    Windfalls, 526–27

    Withholding taxes, 403

    • reduction in return filing, 566

    The term “income tax” is used here to refer to both the income tax on individuals and the income tax on corporations, which in many countries has a different name, for example, profit tax. In some countries, these taxes are governed by separate laws, and in others by the same law. See infra ch. 14, sec. II(B).

    In this volume we also include in footnotes a few comments by Prof. Leif Mutén, identified as L.M., who kindly reviewed much of the manuscript.

    See Tax Policy Handbook 294 (Parthasarathi Shome ed., 1995).

    See id. at 300-18.

    See id.

    A recent exception is Hugh Ault et al., Comparative Income Taxation (1997), which considers a broad range of structural issues for the income tax of nine industrial countries, representing four of the eight families of countries identified in Table 1.

    Brian Arnold, The Taxation of Controlled Foreign Corporations: An International Comparison (1986); Brian Arnold, The Taxation of Investments in Passive Foreign Investment Funds in Australia, Canada, New Zealand and the United States, in Essays on International Taxation (Herbert Alpert and Kees van Raad eds., 1993).

    Of course, by focusing on solutions adopted within the same paradigm, research confined to a single group can also be helpful.

    Cf. K. Zweigert and H. Kötz, An Introduction to Comparative Law 66 (2d. ed., Tony Weir trans. 1992).

    As far as I have been able to ascertain, only two IMF member countries (The Bahamas and Vanuatu) do not have an income tax. Several have an income tax of only limited application. Thus, Maldives has a tax on bank profits only. St. Kitts and Nevis has an income tax on corporations, but not on individuals. The United Arab Emirates, Oman, and Qatar have corporate taxes, but these apply mostly to oil companies and financial institutions. See 29 Tax Laws of the World 96, 110 (1987). Palau has a schedular and somewhat hybrid system, which includes a tax on wages, a modified turnover tax on businesses, and a tax on the net income of financial institutions.

    By way of disclaimer, I have not studied all these countries in detail, and it is certainly possible that the classification can be improved on the basis of further study and can be enriched by analysis of cross-family influences. Perhaps there is a doctoral dissertation here for someone?

    See Guy Gest, France, in Ault et al, supra note 6, at 39.

    Report of the Inter-Departmental Committee on Income Tax in the Colonies not Possessing Responsible Government, Cmnd. 1788 (Dec. 1922).

    The concept of income in these countries is, however, influenced to varying degrees by the same theories that lie behind English judicial decisions on the meaning of income. See Ault et al., supra note 6, at 8-10, 27-29.

    See Tiley, United Kingdom, in Ault et al., supra note 6, at 109. The tax was imposed by the Income Tax Act, 1799 (39 Geo. 3, c. 13). For a history of the law, see also 12 Halsbury’s Statutes of England (2d ed. 1949).

    See Sylvain Plasschaert, Schedular, Global and Dualistic Patterns of Income Taxation 30 (1988). See infra ch. 14 for a discussion of the distinction between a schedular system and a global system with a schedular definition.

    See infra ch. 14, note 8.

    See vol. 1, at 91.

    In the United States, an additional factor has contributed to this tendency—namely, that under the federal structure while tax concepts are federally defined, corresponding civil law concepts are differently defined in different states, which are not even uniformly common law jurisdictions.—L.M. Similar considerations apply in Australia (also a federal state), Canada (a federal state, with both common and civil law systems), and to some extent even in the United Kingdom (which has two legal systems for private law—one applicable in Scotland and the other in the rest of the country). See also infra ch. 20, note 49.

    See FRA CGI § 1. The professional income category includes miscellaneous income: “sources of profits not included in another category of benefits or incomes.” Id. § 92.

    See Guy Gest, France, in Ault et al., supra note 6, at 39. For a discussion of schedular and composite taxation, see infra ch. 14, sec. II.

    See infra ch. 14, sec. IX(B).

    See vol. l, ch. 12.

    See Ault et al., supra note 6, at 198.

    See id. at 385.

    For a synopsis, see Plasschaert, supra note 16, at 32.

    See id. at 30-31.

    See id. at 17.

    See CHL IR §§ 52, 56(3), 63.

    This discussion of Argentina draws on Enrique Reig, Impuesto a las Ganancias 24-25, 37-40(1991).

    See infra ch. 16, Appendix A.

    See ARG IT § 2.

    See vol. 1, ch. l3.

    See Peter Byrne, The Business Assets Tax in Latin America—The End of the Beginning or the Beginning of the End? 15 Tax Notes Int’l 941 (Sept. 22, 1997); vol. 1, ch. 12, sec. III(C). Colombia has had a presumptive assets-based tax for some time. See McLure et al., The Taxation of Income from Business and Capital in Colombia 46–49, 140–44 (1990). The concept may have been borrowed from Italy. See infra note 47.

    Russian Federation Act N№ 1998-1, Act on Income Tax on Natural Persons, Dec. 7, 1991.

    For example, both Kazakhstan and Georgia did not tax capital gains of individuals before adopting tax codes in 1995 and 1997, respectively.

    See Act on Income Tax, supra note 35, § 13(1)(a).

    The concept of denying a deduction for excessive wages seems to have to do with a concern that managers of state-owned enterprises would pay excessive wages as an alternative to making profit distributions to the state.

    Kazakhstan adopted a comprehensive tax code in 1995, the Kyrgyz Republic in 1996, and Uzbekistan and Georgia in 1997. I worked on the codes for Kazakhstan and Georgia (the other two were modeled on the Kazakh code) and in my (biased) opinion, the Georgian code is the best of the lot at the time of writing. Even these relatively more modern codes respond to the stage of development of the tax systems of the countries concerned and will need to be upgraded in the future.

    DEU EStG § 2.

    For example, Dutch law divides income into business income, employment income, investment income, periodical payments, and profit from the disposal of a substantial interest. See Gerrit te Spenke and A. Peter Lier, Taxation in the Netherlands 22 (1992).

    Belgium is an exception. See infra ch. 20, sec. III(A).

    See Ault et al., supra note 6, at 199.

    See Plasschaert at 28-29. Greece also had a schedular system until 1955. The line between north and south is not a clean one, in the sense that Belgium and France had composite systems, going global in 1962 and 1960, respectively.

    See Harvard Law School, Taxation in Italy (1964).

    See id. at 196-97.

    See id. at 199-200. The assets tax has now been dropped. See ITA ISR § 89.

    See César Albiñana, Sistema Tributario Español y Comparado 260-63 (2d ed. 1992).

    See ESP IRPF § 5.

    See Albiñana, supra note 48, at 203.

    See Reglamento del Impuesto Sobre Sociedades, § 37, reprinted in Código Tributario (Ollero et al. eds.; Aranzadi, 1995); Albiñana, supra note 48, at 208.

    An argument could be made for putting Islamic countries into a separate family, but it is not clear that there is sufficient commonality with respect to the income tax to warrant doing so. A feature that is unique to Islamic countries (since it is based on the Koran) is the zakat (whose form varies from country to country, but could be characterized as a hybrid income and wealth tax). In some Islamic countries, particularly Saudi Arabia, the zakat plays an important role in the income tax system, but the relationship between the zakat and the income tax differs substantially from one country to another.

    See Nakazato and Ramseyer, Japan, in Ault et al., supra note 6, at 79.

    See id. at 71.

    For a detailed discussion of these terms, see vol. 1, at 91-93.

    See infra ch. 16(V)(B).

    Note: Frans Vanistendael provided extensive input into an earlier draft of this chapter.

    This chapter uses the term “individual,” commonly referred to in civil law countries as “physical person” or “natural person,” and refers to the tax as individual income tax or personal income tax.

    According to the latest legislation we could find (see Bibliography of Tax Laws), Burkina Faso, Burundi, the People’s Republic of China, Eritrea, Ethiopia, Lebanon, Palau, Romania, Rwanda, Somalia, Sudan, the Republic of Yemen, and the Democratic Republic of the Congo (formerly Zaïre) have a substantially schedular individual income tax, in which different rate schedules apply to different major categories of income. Although Hungary has a global definition of income and a progressive rate schedule for the consolidated tax base (see HUN PIT §§ 4, 30), there are so many special rules and separate rates for different kinds of income that the tax should be considered substantially schedular. While the Philippines started out with a global system, a schedular system was adopted in 1981, with wages being taxed separately from other income. See Angel Yoingco, The Dynamics of Income Tax Reform (1985); and National Internal Revenue Code §§ 21, 28, and 29 (J. Nolledo, ed. 1985). Since then, there has been some movement back toward a global system, although substantial schedular elements remain. Schedular taxes are imposed on foreign-source income derived by nonresident citizens, and on interest, dividends, and capital gains, while other income is aggregated and subject to tax under a progressive rate schedule. See PHL NIRC § 21. A number of other countries treat certain income from capital on a schedular basis, for example, CZEITA § 36 (special rates of tax applicable to interest and dividends); KAZ TC § 13 (interest, dividends, and liquidation gains subject to final taxes); LSO ITA § 158(2) (final withholding tax on interest). See also infra note 12.

    See Sylvain Plasschaert, Schedular, Global and Dualistic Patterns of Income Taxation 17 (1988). Examples of composite systems are those in Chile and Mozambique. The superimposed global tax is typically called a global complementary tax.

    See COL TC § 26; HUN PIT § 4 (but see supra note 2); RUS IT § 2; USA IRC § 61.

    See AUT EStG § 2; BEL CIR § 6; CAN ITA § 3; DEU EStG § 2; FRA CGI § 13; ESP IR § 23; GBR ICTA §§ 15-20; JPN IT § 22; LSO ITA §17.

    See DEU EStG § 22; LSO ITA § 17(l)(d); SGP ITA § 10(l)(g). See also infra secs. III(A) and VI.

    See, e.g., FRA CGI§ 13(3).

    This approach is common in jurisdictions that have derived their income tax principles from the United Kingdom. For example, AUS ITAA (1997) § 6-1(1) provides that assessable income consists of “ordinary income and statutory income.” Statutory income is any amount that is expressly included in assessable income under a provision of the tax law (ITAA (1997) § 6-10(2)). Ordinary income is income classified according to ordinary concepts (ITAA (1997) § 6-5(1)). The definition of income classified according to ordinary concepts has been elaborated by the courts. An amount derived is ordinary income if it has its source in an earning activity. The earning activities identified by the courts are the employment of one’s labor, the investment of capital, or the application of labor and capital combined (i.e., the carrying on of a business). This has led to what is, in effect, a judicial categorization of income into employment, business, or property income. The courts have recognized that an amount derived that exhibits some of the essential characteristics of employment, business, or property income (such as periodicity and anticipation of receipt) may be ordinary income, although it does not have its source in an earning activity. Examples of such amounts are pensions and annuities.

    Capital gains may be distinguished because they are subject to preferential rates of tax, are partially exempt from tax, or are adjusted for inflation, or because restrictions are imposed on the deduction of capital losses.

    For example, many jurisdictions distinguish interest outgoings from other expenses for the purpose of imposing quarantining rules. See infra ch. 16. These rules may require further categorization of income types because interest expense incurred to earn a particular type of income may be deductible only against that type. Another expense-quarantining rule found in some jurisdictions is a restriction on the deductibility of employment expenses, which requires drawing a distinction between employment and business activity.

    An example is farming income, which is taxed on the basis of estimates in a number of countries. See FRA CGI § 64; DEU EStG § 13(1); AUT EStG § 21. In such countries, it will be important whether a particular activity is considered farming or nonfarming business. Obviously, this is also the case in countries where income from agriculture is exempt. E.g., GEO TC § 43.

    Belgium effectively abolished progressive income tax on dividends and interest in 1985 and replaced it with a final withholding tax system; See BEL CIR §§ 171, 261, 269. Germany, which had a progressive tax on interest, collected very little on it and introduced a withholding tax in 1994 in order to be able to collect at least some revenue on interest income; See DEU EStG §§ 43, 43a. Scandinavian countries, led by Sweden, have recently moved toward schedularization and final withholding taxes on income from capital. See Leif Mutén et al., Towards a Dual Income Tax? (1996). See infra sec. XII, for discussion of final withholding tax on employment income. See infra ch.16 for discussion of final withholding taxes on investment income.

    See Mutén et al., supra note 12. The specific manifestation of this exploitation often is the deduction of interest expense and other losses against positive capital income. As a result of such deductions, the tax base for capital income may be very small without schedularization.

    Schedular systems may even have separate laws for different categories of income. This was more common in the past, but currently applies in Romania, for example, although it is proposed to consolidate these laws.

    In addition to the basic structural alternatives described, a look at the Bibliography of Tax Laws, infra, shows that many countries have, besides the basic individual and corporate income tax laws, other tax laws that contain rules related to income tax. Some of the Scandinavian countries provide examples of this. The resultant structure contributes to the complexity of the system, although it must be said in fairness that other countries (such as the United States) have managed to achieve a comparable if not greater complexity even though they have only one tax law.

    This is, for example, the case in Latvia, Romania, and Russia. Japan also has separate laws for individuals and corporations, with independent rules for determining income. In Hungary, the individual income tax law contains its own rules for measuring business income and expenses; the corporate income tax law refers to the amount determined for financial accounting purposes in the case of taxpayers keeping double-entry books. See HUN CTDT § 6. The tax code of the Kyrgyz Republic contains separate rules for individuals and companies, repeating most of the income-determination rules.

    See AUT KStG § 7(2); DEU KStG § 8(1); NLD Vpb § 8. Technically, the German company tax is not an income tax, but a tax on profits, the concept of income being reserved for the taxation of individuals.—L.M.

    See ESP IRPF § 42.

    See FRA CGI § 209.

    E.g., AUS ITAA; CAN ITA; COL TC; GBR ICTA; SWE SIL; USA IRC.

    The term “taxable income” is used in this chapter to refer to the amount against which the rates of tax are applied. An alternative term used in some countries is “chargeable income.” See LSO ITA § 13; SGP ITA § 38.

    E.g., LSO ITA § 4(l).

    E.g., USA IRC §§ 1, 11. Until recently, the income tax law in Australia followed this pattern; however, as part of the progressive rewriting of that law, the income tax is now imposed on entities (which is defined to include individuals): see AUS ITAA (1997) § 4-1.

    There are exceptions to this general rule, the most important being withholding taxes that are imposed on gross receipts. However, there is often little or no expense involved in deriving some kinds of income commonly subject to withholding tax, such as interest income. Also, with-holding tax rates are commonly lower than ordinary tax rates, the difference being in part attributable to the fact that expenses are not taken into account when withholding taxes are imposed on gross receipts. The application of a lower rate against income that commonly involves few deductions means that the withholding tax is effectively a proxy for tax on a net basis.

    Also sometimes called “assessable income.” See AUS ITAA (1997) § 4-15.

    Tax offsets are known by a variety of technical labels, including tax credits, tax rebates, and deductions of tax. For a discussion of the terminology used in various countries to describe tax offsets, see infra note 205.

    Unless, of course, it is gross income on which the tax is levied as with withholding taxes. It must be clearly stated when tax is imposed on taxable income and when it is imposed on gross income.

    E.g., AUS ITAA (1997) § 4-15(1), (“taxable income = assessable income − deductions”); CAN ITA § 2(2) (taxable income defined as income plus certain additions and minus certain deductions); USA IRC § 63(a) (taxable income defined as gross income minus deductions).

    The word “derived” is used in this chapter to refer to the allocation of an amount to a particular tax period according to the application of tax accounting rules. See infra sec. VIII.

    E.g., AUS ITAA (1997) §6-1(1) (“assessable income consists of ordinary income and statutory income”); CAN ITA § 3 (income defined as “the total of all amounts each of which is the taxpayer’s income”); EST ITL § 9 (“the income of a resident taxpayer is all income derived.…”); USA IRC § 61 (a) (gross income defined as “all income from whatever source derived”).

    See supra note 8.

    For example, special definitional provisions may be needed to define as interest income certain types of gain realized on financial transactions. See infra ch. 16.

    See infra sec. VI for examples of amounts that may fall outside a classification of income into employment, business, and property income.

    E.g., LSO ITA § 17(l)(d); SGP ITA § 10(l)(g).

    E.g., EST ITL § 9(1) ("income of a resident taxpayer is all income derived by him/her from all sources of income during the period of taxation, including" seven specified categories of income. The inclusive nature of the provision means that any other amount derived by a resident taxpayer that is “income” is taxed); IDN IT art. 4(1) (“the Tax Object is income, meaning any increase in economic prosperity received or accrued by a Taxpayer … that may be used for consumption or to increase the wealth of such Taxpayer, in whatever name and form, including” 11 specified categories of income. Again, the inclusive nature of the provision means that any other amount that is “income” is taxed). “Inclusive” is used here to refer to a definition that takes the form of including specified items in a general concept, as opposed to offering an exhaustive definition of that concept.

    E.g., EST ITL § 9(1); IDN IT art. 4(1); SGP ITA § 10(l)(g).

    IDN IT art. 4(1) is an example of a defined concept of income being used as a residual category. In that provision, income is defined to mean “any increase in economic prosperity.” See supra note 35.

    In the Anglo context, as a result of judicial decisions, for an amount to be income, it must have its source in an earning activity or exhibit the essential characteristics of an amount that has its source in an earning activity (see supra note 8). This is also the case in some continental European countries. In the United States, a broader notion of income has been developed by the courts, including any realized accretion to wealth.

    E.g., IDN IT art. 4(1) and (3); LSO ITA § 17(l)(d) and §§ 21-32.

    See infra sec. VI.

    See infra ch. 19. The exemption may not apply to all income of the entity. For example, business income derived by such an entity from carrying on activities that are not related to the entity’s religious, charitable, or educational purpose may be taxable.

    Vienna Convention on Diplomatic Relations (1961) art. 34 (500 UNTS 95).

    For example, it is a feature (albeit unusual) of the Australian income tax that the amount of a loss carried forward for a particular tax period is reduced by the net exempt income of the taxpayer for that period, with the balance applied first against the net exempt income of the following tax period (AUS ITAA (1997) § 36-15). With such a feature, it is important that amounts treated as exempt income to prevent double counting be excluded from the calculation of net exempt income. Australian tax law has not always been consistent in this regard.

    See infra sec. VI.

    E.g., LSO ITA § 46(l).

    E.g., LSO ITA § 46(2).

    See, e.g., Tilley v. Wales [1943] A.C. 386 (U.K. courts).

    See, e.g., McLaurin v. FC of T (1961) 104 CLR 381 (Australian courts have characterized such an amount as wholly capital).

    This is the position in the United States under the judicially developed tax benefit principle. See Hillsboro Nat’l Bank v. C.I.R. 460 U.S. 370 (1983); see generally Bittker & Kanner, The Tax Benefit Rule, 26 U.C.L.A. L. Rev. 265 (1978).

    See, e.g., FC of T v. Rowe (97 ATC 4317) (Australia).

    Countries with a tax code may specify such a rule as part of the general provisions applicable to other taxes as well (such as value-added tax (VAT)). E.g., Germany has a separate tax law known as the Valuation Law (DEU BewG).

    E.g., LSO ITA § 65(l).

    The in-kind payment may also involve the disposal of an asset (such as inventory) of the payer. Consequently, the valuation rule will need to apply also for the purpose of calculating any gain or loss on disposal of the asset by the payer. Similarly, the receipt of the in-kind item may also amount to the acquisition of an asset by the payee and the valuation rule will need to apply for the purpose of determining the tax cost of the asset. For example, suppose that A owes B $100 for rent of business premises. Instead of paying cash, A transfers to B inventory with a market value of $100 and that cost A $80. Under a fair market value rule, A will be required to recognize a gain of $20 on disposal of the inventory and will be allowed to claim a deduction of $100 for rental expense. This means that A is in the same position as if he or she had disposed of the inventory for cash that was then used to pay the rent. Under the fair market value rule, B would be required to recognize $100 as rental income and as the cost of the inventory acquired.

    This is a consequence of the doctrine from the decision of the House of Lords in Tennant v. Smith [1892] A.C. 150, where the taxpayer received free use of premises that he could not assign or let.

    See FC of T v. Cooke & Sherden 80 ATC 4140 (nonconvertible benefit provided in the business context); and Dawson v. Comm’r of IR (NZ) 78 ATC 6012 (nonconvertible benefit provided as the return for an investment).

    E.g., ERI ITP arts. 7 and 20.

    LSO ITA § 17(l)(a); SGP ITA § 10(1)(b).

    DEU BGB (Civil Code) § 611 et seq. ESP Código Civil § 1544; ITA Codice civile § 2096 et seq.

    See infra sec. XII.

    E.g., FRA CGI §§ 80-80 ter; HUN PIT § 24 (nonindependent activities include those of employment, legislative service, participation in association, and office holding, and activities of contributing family members); USA IRC § 3121 (d). There have been substantial difficulties in the United States in the classification of workers as employees or independent contractors. Rev. Rul. 87-41, 1987-1 C.B. 296, sets forth 20 factors in applying the common law test for an employment relationship. See also Revenue Act of 1978, § 530, Pub. L. No. 95-600, which imposed a moratorium on the issuance of regulations on this issue. See Staff of the Joint Committee on Taxation, General Explanation of the Revenue Act of 1978, at 300-05 (1979).

    See, e.g., FRA Code du travail § 140-2 (definition of salary).

    The withholding system applied to employment income is commonly called a pay-as-youearn or PAYE system. See infra sec. XII; ch. 15. However, where employer withholding is a final tax on employment income, there should be complete identity between the definition of employment income for the purposes of the charge to tax and for the purposes of collection of tax.

    Many income tax laws contain a nonexhaustive enumeration of various elements of income derived from employment. See AUT EStG § 25; BEL CIR §§ 31-32; DEU EStG § 19; ESP IRPF §§ 24-26.

    See infra sec. IV(C).

    See infra sec. IV(C)(3).

    For example, in Canada, ITA § 8(1)(a) formerly allowed a standard deduction for employee expenses of 20 percent of employment income, to a maximum of Can$500. This provision was repealed in 1988, so that now there is no deduction for expenses incurred to derive employment income, except for very special categories of employment such as artists, clergy, and truck drivers. A similar position applies in New Zealand where no deductions are allowed for any expenditure or loss incurred in gaining or producing employment income (ITA § 105).

    See ESP IRPF § 28(2) (standard deduction of 5 percent with a cap of Ptas. 250,000 (approximately US$2,250) and a special standard deduction for handicapped employees; there is no provision for an itemized deduction).

    The incentive to convert an employment relationship into an independent contractor relationship will depend on the scope of the definition of employment that applies for this purpose. As stated above, a broad definition of employment will include independent contractor relationships where the remuneration paid is essentially for the labor of the service provider.

    Jurisdictions that allow employees to choose between a standard deduction and an option to claim a deduction for itemized and substantiated expenses include Austria: AUT EStG § 16(3), which provides a flat deduction of S 1,800 (approx. US$180); Belgium: CIR § 51, which establishes a declining standard deduction of employment expenses ranging from 20 percent of employment income below BF 150,000 (approx. US$5,000) to 3 percent of employment income exceeding BF 500,000 (approx. US$16,500), subject to a maximum deduction of BF 100,000 (approx. US$3,300); France: CGI § 83 /3°, which provides an ordinary deduction of 10 percent of employment income, to a maximum indexed deduction (F 72,250 in 1993) and an additional standard deduction for specific forms of employment (artists, journalists, miners, construction workers, and traveling salesmen), which varies from 10 percent to 30 percent of employment income, also subject to a maximum limit; Germany: EStG § 9a (flat amount of DM 2,000 (approx. US$1,400)); the Netherlands: NLD WIB § 37, which provides a standard deduction of 8 percent of employment income, subject to a fixed minimum and maximum deduction and a special standard deduction for sailors; and the United States: USA IRC § 63, which provides a combination of standard deductions. A special feature of the U.S. employment income deductions is the adoption of a floor on deductions for certain itemized expenses, set at 2 percent of “adjusted gross income.” See USA IRC § 67. A U.S. employee opting for the standard deduction in lieu of itemized deductions also gives up the right to itemized deductions that are not connected with employment.

    Two exceptions to this general rule are Australia and Canada. Australia permits deductions only for substantiated expenses and, as noted earlier, Canada does not allow any deduction for employment expenses.

    Examples of jurisdictions with relatively low standard deduction thresholds include Austria and the Netherlands.

    E.g., AUS ITAA (1997) § 8-1; AUT EStG § 16(1); BEL CIR § 49; DEU EStG § 9(1); ESP IRPF§41.

    Commuting expenses may be regarded either as travel to and from work (deductible) or as travel to and from home (nondeductible living expenses).—L.M. For a theoretical discussion, see William Klein, Income Taxation and Commuting Expenses, 54 Cornell L. Rev. 871 (1969).

    E.g., AUS ITAA (1997) § 8-l(2)(b) prohibits deductions for expenses of a “private or domestic nature”; FRA CGI § 83/3° limits deductions to expenses “inherent to the office or employment”; GBR ICTA § 198 allows “the holder of an office or employment” a deduction for expenses incurred “exclusively and necessarily in the performance of those duties” [of the office or employment]; IDN IT art. 9(1)(h) denies a deduction for “costs incurred for the personal needs of the Taxpayer and his dependents”; USA IRC § 262 denies deductions for “personal, living, or family expenses.”

    See infra sec. VII.

    See USA IRC § 21.

    See CAN ITA § 67.1; LSO ITA § 35; USA IRC § 274(n).

    AUS ITAA (1997) § 32-5; GBR ICTA § 577(l)(a); for a review of deductibility of entertainment expenses in several jurisdictions, see Ault et al., Comparative Income Taxation: A Structural Analysis 216-19 (1997).

    E.g., GEO TC § 49(2) (representation); ROM PT § 6(2)(protocol).

    This is particularly the case with nontransferable benefits of a kind or quantity that the taxpayer would not have been interested in buying with his or her own money. An individual estimate of when this is the case is, however, too much for a mass procedure such as income tax assessment.—L.M.

    E.g., AUT EStG § 25(1)la; BEL CIR § 31(2); DEU EStG § 19(1)1; FRA CGI art. 82; ESP IRPF §§ 24(2), 26; USA IRC § 61(a)(l).

    See International Fiscal Association, The Taxation of Employee Fringe Benefits 18-19 (1995).

    See supra note 54.

    Wilkins v. Rogerson [1961] 1 ch. 133 (an employee was provided with a suit worth £30, but was taxed only on its secondhand value of £7).

    It is used, for example, in Canada (ITA § 18(1)(b)) and the United States (IRC § 274) to tax some entertainment and recreational benefits provided to employees. In Belgium, art. 53/14° CIR denies a deduction for certain fringe benefits that are exempt in the hands of the employees on the basis of art. 38/11°, because (1) the beneficiaries of such benefits cannot be easily identified; (2) they cannot be considered as effective remuneration; or (3) they are small gifts and benefits at the occasion of weddings, birthdays, and other personal occasions.

    This is the case in Australia, for example. The deduction denial will cause the company to incur higher taxes, which in turn generates tax offsets (commonly referred to as “imputation credits”) under an imputation system that shareholders may use to shelter tax-exempt income derived by the company. For a general explanation of “washout,” see Charles McLure, Must Corporate Income Be Taxed Twice? 94-95 (1979).

    The concept of a fringe benefits tax has its genesis in the Report of the Task Force on Tax Reform 154-56 (1992) prepared by the McCaw Committee in New Zealand.

    See, e.g., EST ITL § 33; LSO ITA §§ 115-127; MWI ITA §§ 94A-94D.

    See Richard J. Vann, Some Lessons from Hussey and Lubick, 7 Tax Notes Int’l 268, 268-70 (1993); Richard K. Gordon, Some Comments on the Basic World Tax Code and Commentary, 7 Tax Notes Int’l 279, 280-81 (1993).

    This is only a problem where, as is usually the case, a progressive marginal rate structure applies to individuals. Estonia is the only country that imposes a fringe benefits tax to also apply a flat rate of tax to individuals. In Estonia, the fringe benefits tax rate is aligned to the individual rate of tax, which is currently 26 percent (EST ITL § 7).

    For this reason, if a fringe benefits tax is used, it may be desirable to exempt benefits of this sort. See LSO ITA § 124(3). Safeguards could be provided to prevent abuse (e.g., the Lesotho exemption applies only when the benefit is available to “all non-casual employees on equal terms”).

    This is the method that applies in Estonia and Malawi. It is also the method that originally applied in Australia and New Zealand.

    This is the method that applies in Australia, Lesotho, and New Zealand.

    This is the method that applies in Australia (FBTAA § 136AA) and Lesotho (LSO ITA §117).

    This is the method used in New Zealand.

    Generally referred to as a “foreign tax credit”; see infra ch. 18.

    The same problem can arise where the employee’s country of residence provides relief from international double taxation by exempting foreign income from tax. This is because it is usually a condition of such relief that the employee has paid foreign tax on the foreign income.

    A leading example is in the area of pensions paid from pension or retirement funds, as the pensions may be double taxed if derived by a beneficiary in a country that taxes pension recipients from a country that taxes pension or retirement funds.

    One exception to this is the renegotiated Australia-New Zealand double tax agreement (signed Jan. 27, 1995), which was adopted in part to better coordinate the application of those countries’ employer-based fringe benefits tax systems.

    Such taxation should, of course, apply only to those employees (typically, local staff) who are taxed on their employment income as a general matter. Another example of an employer who is generally excluded from a fringe benefits tax is a private individual who employs domestic staff (e.g., housekeeper, gardener, or chauffeur). However, in most developing and transition countries, the remuneration paid to such staff will generally be below the threshold for income taxation.

    See Report of the Task Force on Tax Reform, supra note 87.

    See generally sec. IV(A).

    Where PAYE withholding is not a final tax, the value of fringe benefits provided may be excluded from the PAYE tax base, with the result that tax is deferred until assessment.

    For example, the value of automobile benefits may be determined by a formula that takes into account the cost of the vehicle, its age, and the distance traveled in the year.

    Some jurisdictions offer a range of exemptions for particular benefits for political reasons or to subsidize certain activities, particularly in remote areas. These exemptions take the form of indirect spending programs and, accordingly, are not considered in the context of devising a fringe benefits tax system.

    E.g., AUS FBTAA §§ 37A-37CE

    For examples of exemptions on this basis, see LSO ITA § 118 and USA IRC § 132.

    See USA IRC § 132(d). For purposes of applying such a rule, any special rules denying all or a portion of employee expenses (see, e.g., USA IRC § 67) should be ignored.

    See USA IRC § 62(a)(2)(A).

    E.g., DEU EStG §§ 15 (Gewerbebetrieb), 18 (Selbständige Arbeit); FRA CGI §§ 34 (Bénéfices industriels et commerciaux), 92 (Bénéfices des professions non commerciales).

    See Klaus Tipke & Joachim Lang, Steuerrecht 334 (13th ed. 1991). The former were supposed to trade for a profit, while the latter performed their services without profit motive, for only an “honorary fee.”

    AUS ITAA (1997) § 995-1: “Business includes any profession, trade, employment, vocation or calling, but does not include occupation as an employee”; CAN ITA § 248(1); GBR ICTA § 18, sched. D, cases I and II.

    See, e.g., ESP IRPF § 40 (both including professional income together with business income); NLD WIB § 6/2.

    See Cesarini v. United States, 296 F. Supp. 3 (N.D. Ohio 1969) (cash found in used piano is taxable).

    See vol. l, ch. 12.

    A taxpayer may, for example, produce evidence of substantial winnings while omitting evidence of amounts lost. The latter may be difficult or impossible for the tax authorities to reconstruct.

    In 1986, the United States, which had previously made distinctions such as those outlined above, adopted a rule under which prizes and awards would be generally taxable. See USA IRC § 74.

    See, e.g., Joseph M. Dodge, Beyond Estate and Gift Tax Reform: Including Gifts and Bequests in Income, 91 Harv. L. Rev. 1177 (1978).

    See vol. l, ch. 10.

    See LSO ITA § 31. Where the statute has excluded gifts without any statutory limitation, the courts have had difficulty determining whether certain transfers, particularly those occurring in a business context, qualified as excludable gifts. See Commissioner v. Duberstein, 363 U.S. 278 (1960).

    This is the case, for example, in AUS ITAA (1936) § 102B and CAM ITA § 74(1), where attributed income is excluded from the recipient’s attributable income.

    See CAN ITA § 56(1)(n).

    See AUS ITAA (1936) § 23(ya), (z), and ITAA (1997) § 51-10; USA IRC § 117.

    A specific rule to this effect can be included in the law. E.g., LSO ITA § 70 (“compensation received takes the character of the thing that is compensated”).

    See, e.g., CAN ITA § 56(1)(a) (unemployment insurance benefits are included in computing the income of the taxpayer).

    The basis for their nontaxation in some global systems is sometimes obscure. The United States is an example of a jurisdiction where the rationale for exclusion is not articulated. See I.T. 3447, 1941-1 C.B. 191 (USA) (holding that social security benefits are not taxed, but no reason given).

    For example, cancellation of private debts (incurred in a nonbusiness or nonemployment context) does not result in the derivation of income in Australia, Canada, France, Germany, Japan, the Netherlands, Sweden, the United Kingdom, and the United States. See Ault et al., supra note 78, at 182-85. It may, however, be subject to gift taxation.

    See infra ch. 16.

    See Ault et al., supra note 78, at 172-75.

    See Ault et al., supra note 78, at 186-87.

    If an outlay is incurred to derive gross income, then it may be a deductible expense (see sec. IV(B), above).

    See generally, Richard Krever, Tax Deductions for Charitable Donations: A Tax Expenditure Analysis, in Richard Krever & Gretchen Kewley eds., Charities and Philanthropic Organisations: Reforming the Tax Subsidy and Regulatory Regimes (1991).

    The experience in Australia is that about one-third of deductible gifts are made to private schools with a consequent benefit to the donor (Krever, supra note 132, at 20-21).

    E.g., CAN ITA § 118.1 (amount of the tax offset is 17 percent of the first $250 of the gift and 29 percent of the excess above $250, subject to a maximum deduction of 20 percent of the taxpayer’s total income for the tax period); NZL ITA § 56A (amount of the tax offset is 33⅓ percent of the gift subject to a maximum deduction of $500).

    See supra note 134.

    It is important that an organization qualify as a charitable organization only if it applies all or substantially all income and donations derived for charitable purposes so as to prevent individuals from using the exemption to build up a tax-free fund. In the United States, such a requirement is applied to private foundations, but not to all charities.

    Various tax systems refer to the tax year in terms such as the “fiscal year,” “year of assessment,” “taxable year,” and so forth. In composite systems, there may be more than one taxable period. For example, in Chile the tax on wages is collected monthly, while the taxable period for the global complementary tax is the calendar year. See CHL IR §§ 43, 52.

    E.g., AUS ITRA 1986 §§ 16-20 (proration of tax-free threshold); CAN ITA § 118.91 (proration of certain deductions); CZE ITA § 15(7) (proration of tax allowances); FRA CGI §§ 166, 167 (treatment of income before establishment of residency and after departure); JPN ITL § 102 (computation of tax where a nonresident becomes a resident in the course of the taxable year).

    The rules of tax accounting are discussed in greater detail in ch. 16, infra.

    In the United States, the term used for deductions is “paid” or “accrued.” E.g., USA IRC § 162(a).

    There may be a derivation of an amount by some person other than the taxpayer, but the circumstances may be such that the amount derived does not have the character of income in the hands of that other person. For example, if part of an employee’s salary is paid to his or her spouse, the amount derived by the spouse will not be employment income of the spouse because the spouse provided no services to the payer. This amount would constitute a gift.

    See, e.g., 1 William McKee et al, Federal Taxation of Partnerships and Partners ¶ 9.01[10] (3rd ed. 1997) (discussing whether reference to person or taxpayer includes a partnership).

    See also vol. 1, at 101.

    This can occur, for example, under a system where a wife’s income and deductions are included in the calculation of the taxable income of her husband, but the tax owed by the husband on the wife’s income can be collected from both the husband and the wife (see ZMB ITA §§ 19(1), 85).

    A different meaning of tax unit refers to the person or persons against whom tax is assessed, that is, the legal taxpayer. The two need not necessarily be the same. For example, in some systems the taxpayer is the individual, but the tax is calculated on the basis of the joint incomes. This was previously the system in Sweden. See Martin Norr et al., Taxation in Sweden 83 (Harvard Law School, International Tax Program 1959).

    See generally Brian Arnold et al., Materials on Canadian Income Tax 39-44 (1993); John Head & Richard Krever eds., Tax Units and the Tax Rate Scale (1996).

    39 Geo. 3, c. 13 (repealed).

    For a historical review of family unit taxation and a comprehensive survey of the literature, see Neil Brooks, The Irrelevance of Conjugal Relationships in Assessing Tax Liability, in Head & Krever, supra note 146, at 35. While the United Kingdom finally adopted the individual as the tax unit in 1990, some of its former colonies still provide for the aggregation of a wife’s income with that of her husband. See KEN ITA § 45 and ZMB ITA § 19(1).

    Each state of the United States has its own system of private law, including property and family law. In community property states, the income of a married couple is treated for property law purposes as if it accrued to each spouse, whatever the actual derivation pattern.

    See USA IRC § l(a).

    This is because the rate bands for an unmarried individual are broader than one-half as wide as the rate bands of a married couple filing jointly. See USA IRC § 1 (c).

    This is because the brackets of the rate schedule for married persons filing separately (as opposed to unmarried individuals) are one-half as wide as the brackets for joint returns (see USA IRC § l(d)), so that the tax would normally be higher in all cases except when the incomes are evenly split, in which case the tax would be the same. However, this rate scale can be advantageous in certain cases where limitations on certain deductions based on a percentage of income would otherwise apply (e.g., when one spouse has a low income but high medical expenses, the latter being subject to a floor of 7.5 percent of adjusted gross income).

    For example, in Belgium and the Netherlands. See Sommerhalder, The Taxation of Families and Individuals in Europe, in Head & Krever, supra note 146, at 163, 166-79. Both Belgium and the Netherlands have hybrid systems that tax married couples separately for earned income, but also provide tax relief for couples. See also COG CGI §§ 89-95; CMR CGI §§ 117-123.

    See DEU EStG § 26a.

    See DEU EStG § 26b.

    GBR ICTA § 257A. The relief is referred to as the married couple’s allowance and is provided to the husband, although under § 257BA the wife can elect to claim one-half of the relief. See Sommerhalder, supra note 153, at 186-92.

    See FRA CGI § 156.

    See FRA CGI § 194.

    See FRA CGI § 197(2).

    See generally Toni Robinson & Mary Moers Wenig, Marry in Haste, Repent at Tax Time, 8 Va. Tax. Rev. 773 (1989).

    For some purposes, some income tax laws also treat persons living in a partnership without being married in the same way that they treat a married couple. See AUT EStG § 33(4)(1); NLD WIB § 56. Rules based on whether two people live together can, however, be criticized on grounds of invasion of privacy.

    There is an exception to this for a married individual who has primary responsibility for the maintenance of a child (USA IRC §§ 2(c) and 7703(b)). This exception applies only where the individual elects to file separately and ensures that the rates of tax for unmarried individuals apply rather than those for married individuals electing to file separately.

    KEN ITA § 45(2) and (3); ZMB ITA § 3(1)(b).

    See USA IRC § 7703 (applies only to certain sections of the Code).

    See vol. 1, at 28.

    Ordinarily, support payments are not a deductible expense of the payer because they are not incurred in deriving income subject to tax. Consequently, it is usually not necessary to expressly provide for the denial of a deduction for such payments. In some jurisdictions, though, the receipt of support payments may constitute the derivation of income because of the periodic nature of the payments. It may be necessary, therefore, to expressly exempt such amounts from tax. E.g., AUS ITAA (1997) § 51-50.

    E.g., USA IRC §§ 71, 215; ZMB ITA §§ 17(h), 40. Full or partial deductions for alimony are allowed in Belgium, Canada, France, Germany, the Netherlands, and Sweden, and a limited tax offset is provided in the United Kingdom on the same basis as that for married couples. See Ault et al., supra note 78, at 276-80; Sommerhalder, supra note 153.

    A contrary argument is that relief for dependents is a way of implementing a policy whereby income is split among family members: “each family member should be taxed on items he actually consumes or accumulates, regardless of source.” Michael McIntyre & Oliver Oldman, Taxation of the Family in a Comprehensive and Simplified Income Tax, 90 Harv. L. Rev. 1573, 1576 (1977). Under this argument, deductions for dependents should not be considered subsidies, and therefore do not suffer from the upside-down relief problem described in this section.

    Sweden now provides all support for families through direct expenditure programs. Austria has an extensive system of family subsidies and very little tax relief for dependent children. See Familienlastenausgleichsgesetz 1967; AUT EStG § 33(4), (8).

    Examples include Australia, Belgium, Canada, France, Germany, Ireland, Italy, the Netherlands, Spain, the United Kingdom, and the United States.

    Tax offsets can be provided directly or indirectly by providing an extension of the lowest or tax-free threshold to taxpayers supporting dependents.

    As was the case under the earlier U.K. income tax regimes. See Brooks, supra note 148. This system has been largely abandoned, at least for earned income (i.e., income from employment, business, or the provision of services).

    See supra note 157.

    E.g., USA IRC § 151 (d)(3) (deduction phased out by 2 percentage points for each US$2,500 by which the taxpayer’s adjusted gross income exceeds the threshold amount (US$150,000 for a married couple)).

    See CAN ITA § 118.

    It is possible to design tax offsets that increase in value with income. For example, taxpayers in the Democratic Republic of the Congo are given a 5 percent reduction in tax otherwise payable (which is effectively a credit equal to 5 percent of the tax otherwise due) for each eligible dependent. The reduction is subject to two limitations—it is available for up to only nine dependents and a total monetary cap is imposed on the reduction: ZAR CDC § 89. Because the reduction is a percentage of total tax, which rises with total income, the benefits provided by the system increase with income.

    Exceptions include Canada and the United States. The Canadian goods and services tax credit, designed to provide relief particularly to lower-income persons for indirect taxes, is refundable; see CAN ITA § 122.5. In the United States, the Earned Income Tax Credit, which is partially designed to provide relief for the support of dependents, is also refundable; see USA IRC § 32.

    See infra sec. XII; ch. 15.

    For example, the Australian home child-care allowance is paid to the parent actually caring for the child. The Swedish child subsidy is paid to the mother, if she is in charge.

    E.g., DEU EStG § 32; NLD WIB art. 46. These provisions include relief for foster children.

    The support networks might also he based on a clan, village, or tribe, or on other groups. In some cases support responsibilities may be allocated by law or custom to persons other than the parents. Application of a relationship test might be inconsistent with such support networks.

    For example, in Belgium and the Netherlands the deductions for dependents are automatically allocated to the higher-income spouse. See Sommerhalder, supra note 153.

    See infra sec. X(C).

    A rate schedule with a larger number of brackets may appear to be more progressive, but in fact a schedule with three or four rates can be designed to offer a similar progression in the effective rate of tax.

    For example, a young professional whose average income is depressed because he or she earned little or no income while in school.

    See CAN ITA § 118 (repealed 1980); USA IRC §§ 1301-1305 (repealed 1986).

    See AUS ITAA (1936) §§ 149-158L (farmers, artists, and authors) and §§ 159GA-159GDA (special “income equalization deposit” rules to provide further averaging for farmers); CAN ITA § 119 (farmers and fishermen).

    The design issues are similar to those for antibunching rules discussed in sec. XI (B), below, except that they involve taking into account the income of prior years.

    E.g., AUS ITRA sched. 7.

    E.g., Belgium, Germany, and the Netherlands.

    Whether there is such an incentive to divert income depends on a number of features of the corporate and individual income tax systems. See infra ch. 19.

    See Lucas v. Earl, 281 U.S. 111 (1930); Helvering v. Clifford, 309 U.S. 331 (1940); and Commissioner v. Harmon, 323 U.S. 44 (1944).

    CAN ITA §§ 74.1, 74.2 contain comprehensive attribution rules applicable to transfers to spouses and children whereby the income from property so transferred is taxed to the transferor. AUS ITAA (1936) §§ 102, 102A-102CA contain less comprehensive attribution rules when income is alienated through a trust or for less than seven years. In some cases, income is attributed directly to the transferor; in other cases it is taxed in the hands of a trustee at the transferor’s marginal rate. In addition, AUS ITAA (1936), pt. IIIA imposes a tax liability on the transferor in respect of income-producing property that has appreciated in value as well as in respect of most transfers of income streams. GBR ICTA § 660 contains a rule disregarding dispositions over short periods, § 663 provides that any income from settlements for the benefit of minor children will be taxed as income of the settlor, and § 683 provides for a tax liability of the settlor when income is payable to any person but the settlor.

    This approach was followed in the United Kingdom, where before 1990-91 spouses were taxed on aggregate income, but could elect to be taxed separately on earned income. See GBR ICTA §§ 279(1), 283 (repealed by Finance Act, 1988); see also John Tiley, Butterworths U.K. Tax Guide 1990-91 ¶ 3.01 (1991). It still is the case in Belgium and the Netherlands. See BEL CIR § 126; NLD WIB§ 5(1).

    E.g., AUS ITAA (1936) §§ 102AA-102AJ (unearned income of minor child taxed to the child at the maximum marginal rate); BEL CIR § 126 (income of children taxed together with parents’ income); Gerrit te Spenke & A. Peter Lier, Taxation in the Netherlands 21 (1992) (unearned income of child, other than certain capital gains, taxed to parent with highest earned income); USA IRC § l(g)(certain unearned income of minor child taxed at parents’ rate).

    See, e.g., ESP IRPF § 89(3)(when parents opt for joint taxation, all income (earned and unearned) is aggregated); FRA CGI § 6 (same).

    For example, in Germany, owing to the constitutional clause in defense of the family (GG art. 6(1)), unearned income of the children is taxed separately rather than aggregated with their parents’ income. See Tipke & Lang, supra note 111, at 54.

    See, e.g., AUS ITAA (1997) § 26-35.

    See, e.g., AUS ITAA (1936) § 94. This provision has proved of limited efficacy because attribution follows only if it can be shown that the person to whom income would be attributed “controlled” the partnership. Tax authorities have had more success in arguing that there was no actual partnership in these cases.

    The Australian and U.S. experiences illustrate this point. Australian authorities first tried to combat shifting of this sort by imposing an undistributed earnings tax on private companies. (The tax was also adopted to protect the “classical” company and shareholder tax system—see infra ch. 19.) The undistributed profits tax was abandoned on introduction of the imputation systern in 1986. At that time, company and highest individual rates were aligned. When a significant rate differential was reintroduced in 1988, authorities tried to use a general antiavoidance provision to combat shifting by means of interposed companies. That approach proved of limited efficacy, and in 1995 the government announced that new, comprehensive antishifting rules would be enacted. However, following a change in government, reform legislation was deferred indefinitely. U.S. authorities found it virtually impossible to combat income shifting by means of interposed companies. The problem was solved in that country when the company tax rate was roughly aligned with the highest personal income tax rate.

    See CAN ITA §§ 123(1), 125.

    This approach is used in Australia for “unfranked” dividends (dividends paid out of profits that have not been fully taxed in the hands of the distributing company) derived by private companies. See AUS ITAA (1936) § 46F.

    See USA IRC § 541.

    See AUS ITAA (1936) § 108.

    Cf. vol. 1, at 218, note 146 (tax credit versus deduction for VAT input tax). In France, the term avoir fiscal is used synonymously with crédit d’impôt. See FRA CGI § 158 bis. The draft tax code of Russia (art. 135) uses the term nalogovi credit (literally tax credit) to describe a postponement of the time for payment of tax, that is, in the sense of extension of a loan rather than in the sense of tax credit as it is used here. In referring to the crediting of foreign taxes, the draft tax code uses the verb zaschitivat’ (counting toward, crediting), and uses the term “creditable amount” rather than “tax credit” (art. 560). The term used in Germany (anrechnen or Anrechnung, see EStG § 36) similarly has the sense of counting toward or charging. When a translation problem exists, the solution may lie in using a verb rather than using “tax credit” as a noun. However, when the verb used is equivalent to “deduct,” then the problem discussed in the text—namely, the need to distinguish between deductions from income and deductions from tax—must be addressed.

    Such a tax offset is commonly referred to as a “foreign tax credit.” See infra ch. 18.

    Such a tax offset is commonly referred to as an “imputation credit.” See infra ch. 19.

    See AUS ITAA (1936) § 159P.

    See USA IRC § 21.

    See, e.g., CAN ITA § 118.1(3) (charitable gifts); USA IRC § 24 (political contributions—repealed).

    See AUS ITAA (1936) § 159J. See supra sec. IX(D).

    See AUS ITAA (1936) § 159SM.

    See USA IRC § 32 (earned income credit).

    See supra sec. VII.

    E.g., USA IRC § 21(1)(2) (child-care credit).

    See text at note 177 supra.

    Further restrictions with respect to foreign income may divide that income into different income “baskets” on the basis of income type, the jurisdiction in which it was derived, or both these criteria, and may limit recognition of offsets for taxes paid on foreign-source income in a particular basket to local tax payable on that particular basket, with no carryover to other baskets of foreign-source income. See infra ch. 18.

    See infra ch. 19.

    See, e.g., USA IRC § 38(d).

    This section elaborates on a few issues in PAYE taxation; for a full discussion, see infra ch. 15.

    E.g., USA IRC § 31(a) (credit allowed for the “amount withheld”).

    The New Zealand position is not atypical: revenue authorities are given priority for PAYE and withholding taxes not remitted by an employer, but stand with other creditors for the employer’s basic income tax liability (see NZL ITA § 365). A contrasting position was taken recently in Australia, where the priority for PAYE and withholding taxes was abolished. On the same theory, the failure to pay over the tax withheld can be made a crime, as was done in Sweden, on the basis that it is analogous to embezzlement. See Leif Mutén, Sweden Enacts Tax Account System, 15 Tax Notes Int’l 905 (Sept. 22, 1997).

    See supra sec. IV(A).

    There is, however, a compensating factor, namely, that the total number of transactions to be processed is smaller if small employers are required to pay less frequently. In developing countries, it is not uncommon for 75-90 percent of employers to fall into the “small employer” category, and a system that requires less frequent remittances from these employers may on balance require a smaller staff.

    See supra sec. IX(D).

    USA IRC § 151(c)(3)(D)(I).

    For example, Australia prorates the tax-free threshold for persons becoming or ceasing to be a resident and for persons ceasing full-time education. See AUS ITRA §§ 16-20.

    See infra ch. 15, sec. III(C).

    This problem could be taken care of if withholding were computerized instead of being based on charts, or if withholding were in any event done on a cumulative basis (see infra ch. 15), but this will be beyond administrative capacity in most developing and transition countries.

    See supra sec. IV(C)(3).

    See text at note 91 supra.

    Note: The author would like to thank colleagues from the Tax Administration Division of the IMF’s Fiscal Affairs Department, and Milka Casanegra de Jantscher, Emil Sunley, and Alan Tait for their comments on an earlier draft. This chapter appeared originally in the IMF’s Working Paper series as No. 94/105.

    The basic mechanics of PAYE withholding are outlined in ch. 14, sec. XII, supra.

    Notable exceptions are France, Singapore, and Switzerland (for resident employees).

    See USA IRC § 6012; CAN ITA § 150; AUS ITAA § 161; Graeme Cooper et al., Income Taxation 23-24 (1993); Harvard Law School, International Program in Taxation, Taxation in Sweden 579 (1959); Peter Melz, Taxation of Individuals in Sweden, in Taxation of Individuals in Europe (IBFD 1997).

    See infra sec. III(B).

    See supra ch. 14, sec. II(A).

    See id. sec. VIII(D).

    See appendix for a discussion of Russia and the United Kingdom. In the United States, an employee can request, and the employer can agree to apply, the cumulative system. See USA IRC § 3402(h)(3).

    See DEU EStG §§ 38-42b; National Tax Administration, An Outline of Japanese Tax Administration 26-28 (1993).

    For a monthly wage that increases from $1,000 to $1,500 in July, the total tax withheld is 6 times $210 plus 6 times $385, or $3,570. The income tax liability is $3,420. Therefore, the PAYE in December is reduced by $150, from $385 to $235.

    A similar problem may occur in the year-end-adjusted PAYE when such wage income is paid before year-end.

    In Sweden, return filing has been facilitated by the rule that tax returns are prepared by the tax office, based on information returns received. The taxpayer has to supplement the return as needed, but if the return is correct, he or she just signs it. In Denmark, the taxpayer need not even sign if there is no change to make.—L.M.

    U.S. General Accounting Office, Opportunities to Reduce Taxpayer Burden Through Return-Free Filing (1992). Until 1992, the U.S. withholding system was designed to withhold more than was indicated on the annual income tax tables and, therefore, led to a large volume of refunds.

    E.g., USA IRC § 32 (earned income tax credit).

    See supra note 11.

    Many countries, even those that require all taxpayers to file returns, allow special deductions to be claimed through the withholding system. Examples are deductions for (extraordinary) medical costs, mortgage interest, and certain life insurance contributions. See supra ch. 14, sec. XII(A).

    See generally supra ch. 14, sec. IX(B).

    See appendix infra for the Netherlands and the United Kingdom; sec. II supra for Germany.

    See CHL IR § 65(3).

    CHL IR § 65(3) is applied to this effect.

    The Chilean PAYE system is categorized as a semifinal system because of its “one-way” finality. PAYE withheld cannot be reduced (refunded), but it can be increased by additional income tax because of other income.

    The tax period is basically an accounting convention. Although a calendar year is generally used, many countries allow averaging of annual income over an extended period and most countries provide for a carryover (and also often a carryback) of losses into other years. See Richard B. Goode, Long-Term Averaging of Income for Tax Purposes, in The Economics of Taxation (Henry J. Aaron & Michael J. Boskin eds., 1980).

    In Chile, the comprehensive income tax requires that a return be filed when substantial other income is involved; however, a return for a refund of PAYE—because of short-term employment, for instance—cannot be filed.

    In Switzerland, which applies the PAYE to nonresident employees only, the cantons allow employers to retain a small percentage of the tax withheld from employees as compensation for their collection service. See Cedric Sandford, General Report: Administrative and Compliance Costs of Taxation, 54b Cahiers de droit fiscal international 36 (1989).

    For large employers, a shorter transfer period may be applicable.

    See Vito Tanzi, Inflation, Lags in Collection, and the Real Value of Tax Revenue, in Public Finance in Developing Countries (1991).

    The appropriate bookings in the accounts are (wage $1,000, tax $210):

    WithholdingPayment to Treasury
    (In units of domestic currency)
    Debit account “Wages”1,000Debit account “Wage tax”210
    Credit account “Cash”790Credit account “Bank”210
    Credit account “Wage tax”210

    RUS IT arts. 8-11.

    See vol. 1, at 392-94.

    In Canada, Sweden, and the United States, for example, the tax administration is also responsible for collecting social security contributions from employers.

    In most countries, employers must file a PAYE return together with the payment. The return should contain information on the total wage bill and the tax withheld. Annually, the employer should supply wage and tax information for each employee. That information, however, is not sufficient for audit purposes.

    These adjustments prevent real increases in tax revenue solely because of inflation. Real decreases in revenue resulting from collection lags may occur because of late transfer of the withheld tax by the employer. See Tanzi, supra note 25; See also supra vol. 1, ch. 13.

    See supra ch. 14, sec. XII(D).

    This aspect of the final PAYE of the CIS countries is used in Chile. Such a rule can be criticized as unfair. In deciding whether to adopt it, policymakers need to estimate the degree of unfairness that is likely to be involved given the rate schedule and weigh the unfairness against the administrative costs of allowing return filing in the context of the system as a whole.

    In the United Kingdom, however, other income is, at least to some extent, included in the year-end-adjusted and the cumulative PAYE.

    An individual whose wage income varied during the tax year may not file a return for a refund of PAYE in Chile.

    E.g., LSO ITA § 129(b)(i).

    For a general discussion of some of these design features, see supra ch. 14, sec. XII.

    See John A. Kay & Mervyn A. King, The British Tax System (5th ed., 1990).

    The cost of complying with the obligations to complete and file a tax return is not included in the comparison.

    See NLD WIB§62.

    See id. § 64.

    See id.

    For a general discussion of the United Kingdom’s cumulative PAYE, see John Tiley, Butterworths U.K. Tax Guide 1990-91 ¶ 6: 115 (1990).

    Other general deductions are limited in the United Kingdom and, if allowed, take the form of a reduction at source. For example, mortgage interest is reduced by the percentage that is the basic income tax rate when receivable by a qualified lender, who can, in turn, claim a refund from the administration. GBR ICTA § 369.

    See Income Tax (Employments) Regulations 1993, Regulation 7.

    See id. Regulation 18.

    Currently, the U.K. tax administration is contemplating using “negative tax-free allowances” when other income exceeds personal allowances.

    See Income Tax (Employments) Regulations 1993, Regulation 40.

    Id. Regulation 43.

    See USA IRC § 3402(f)(2)(A).

    Id. § 3402(a).

    Id. § 3402(f)(2)(B).

    See id. § 3402(f)(7).

    See id. § 3402(h)(3).

    See 54 Tax Notes 486 (Feb. 3, 1992).

    If the employer’s employment taxes for the preceding year are over $50,000, the employer must make semiweekly deposits of employment tax; if less than $50,000, the employer makes monthly deposits. Under the semiweekly rule, if the payroll date is Wednesday, Thursday, or Friday, the tax must be deposited by the following Wednesday, in other cases by the following Friday. If the employer accumulates $100,000 in employment tax, the tax must be deposited by the end of the next banking day. See Treas. Reg. § 31.6302-1.

    Although the income tax of the Philippines has substantial schedular elements (see supra ch. 14, note 2), for this purpose it can be considered comprehensive in the sense that wage income is consolidated with other income, such as business income.

    This is a simplification of the actual situation, which has changed over time and which now has moved away from a final tax for employees. While art. 13 of the individual income tax law calls for globalization of income, the precise extent of globalization has varied over time. See, e.g., Presidential Decree No. 2129 of Dec. 11, 1993, which provides that employees with income from several sources whose total income falls within the standard rate bracket do not need to file a return. Article 18 of the law used to be somewhat ambiguous about the filing requirements of employees. It used to state that employees did not have to file returns. However, a sentence was subsequently added stating that this provision did not apply to employees who also had business income.

    See CHL IR § 43.

    See id.

    See CHL IR § 47.

    See CHL IR §§ 43, 44, 65.

    See IDN IT § 21(III).

    See IDN IT § 21(IV).

    The PAYE from employees paid daily and weekly, however, is fixed at the basic income tax rate of 15 percent.

    See IDN IT § 21(VIII).

    For an example of such a form, see Republic of Kenya Income Tax Department, Employer’s Guide to Pay as You Earn in Kenya 14–15 (1991).

    Id. at 10-11.

    Id. at 7.

    See, e.g., id. at 16-19.

    Id. at 9.

    PHL NIRC § 72(d)(2)(A).

    Id. § 72(d)(2)(B).

    Id. § 72(d)(2)(D).

    See id. § 72(h).

    See id. § 76(a).

    Id. § 76(b).

    As discussed in note 58, supra, this is no longer the case for employees with business income.

    RUS IT § 8.

    See id.

    See RUS IT § 8.

    Note: Contributions to this chapter were made by Frans Vanistendael. The appendix is by Victor Thuronyi, with contributions by David Williams. Thanks also to Emil Sunley.

    Global, schedular, or composite; and single or separate tax laws for individuals and legal persons. See supra ch.14, sec. II.

    See also supra ch. 14, sec. V.

    While the word business is commonly used in income tax laws, some countries use other expressions, such as “entrepreneurship,” to identify independent economic activity. See, e.g., EST IT § 9(1) (income derived from entrepreneurship).

    Some systems have distinguished a trade from a profession or a vocation. See, e.g., GBR ICTA § 18 (sched. D, case I (trade) and case II (profession or vocation)). See also supra ch. 14, sec. V. As discussed in ch. 14, it is preferable not to draw such a distinction. Therefore, business should be defined to include both trade and professional activities. E.g., AUS ITAA (1997) § 995-1; CAN ITA § 248; IND ITA § 2(13); KEN ITA § 2; ZMB ITA § 2.

    In the United States, employment is considered to be a business, but other systems generally do not follow this approach. This is in any case largely a semantic point in the United States, which distinguishes the business of employment from other businesses.

    See supra ch. 14, sec. IV(A).

    E.g., AUS ITAA (1997) § 995-1; CAN ITA § 248; KEN ITA § 2.

    In this discussion, the reference to “taxpayer” is intended to include a partnership, although, generally, a partnership is not a separate taxpaying entity. However, it is usual to calculate the taxable income (or the gross income and deductions) arising from the partnership’s activities as if the partnership were a separate taxpayer in respect of that income for the purpose of determining the tax liability of the partners. See generally infra ch. 21.

    See infra appendix.

    See infra sec. IV(B)(1) for a discussion of cash-basis accounting.

    See, e.g., DEU EStG § 4(3) (taxpayers who are not required under commercial law to keep double-entry books and do not keep such books).

    For example, financial accounting may distinguish between ordinary gains and extraordinary gains (which often equate to “capital gains” in income tax concepts) to ensure that readers of the accounts are not misled into thinking that extraordinary gains will be regularly received by the business. Often, extraordinary gains realized upon disposal of an asset have accrued over many years. See Financial Accounting Standards Board (USA), General Standards 117.106 and 117.107 for an example of the criteria used in financial accounting to identify extraordinary gains. The key criteria in U.S. financial accounting standards are the “unusual nature” of the transaction yielding the gain (117.108) and the “infrequency of occurrence” of the transaction (117.109).

    However, several countries draw a distinction between capital gains and other business income. See infra ch. 20, sec. III(A).

    For example, in common law countries, gains that are characterized as extraordinary gains for accounting purposes are commonly treated as capital gains for tax purposes, where the tax system provides different treatment for capital gains and ordinary income gains.

    In some cases, this is done by recognizing receipts as income but then appropriating part of the amount received to a “reserve” to indicate that it is not actually available for use or distribution, but is being held for eventual application to satisfy a contingent or potential liability. Alternatively, an amount received may be treated as unfettered profits but be subject to a notation to the accounts indicating that it is subject to a contingent or potential liability and may not, therefore, reflect actual gain. This might be done, for example, where goods are sold subject to the purchaser’s right to rescind the contract within a fixed period. A receipt related to the provision of future goods or services is likely not to be treated as income at all for financial accounting purposes. Instead, it will probably be credited to a “prepaid revenue account,” which is a liability of the company (offset by an increase in cash). As the goods or services are provided, the liability will be diminished and amounts will move from the prepaid revenue account to the income account. Income tax treatment of advance payments may accord with the accounting treatment or may require inclusion of the payment in income. See infra sec. IV(C)(1).

    See infra sec. IV.

    The U.S. courts have taken a broadly similar approach to the issues discussed in this paragraph, although there are some differences in the approach of the case law—hardly surprising given the extensive amount of litigation on these issues.

    Also sometimes called “assessable income.” See supra ch. 14, note 25.

    See Rutledge v. Commissioner, 14 T.C. 490 (1929); Martin v. Lowry [1927] A.C. 312.

    Some income tax systems derivative of U.K. principles include an “adventure or concern in the nature of trade” in the definition of business. E.g., KEN ITA § 2; CAN ITA § 248; IND ITA § 2(13); ZMB ITA § 2. This has its source in U.K. tax law in which trade is defined to include “every trade, manufacture, adventure or concern in the nature of trade” (GBR ICTA § 832).

    For example, the inclusion of capital gains in AUS ITAA (1936) §§ 160AX-160ZZU and CAN ITA §§ 38-55.

    E.g., GBR TCGA.

    The following definitions of business income for commercial and industrial enterprises are based on a net-increment-of-assets theory (théorie du bilan) and include all gains on assets used for business purposes: AUT EStG § 4; BEL CIR § 24; FRA CGI §§ 34, 36, and 38/1 and 2; DEU EStG §§ 4 and 5; CHE LIFD § 16; ESP IRPF § 41. NLD WIB § 7 taxes any advantage, whatever the name or the form, derived from an undertaking.

    See infra sec. V for a discussion of the timing and calculation rules relating to gains on the disposal of assets.

    See infra sec. VI(C).

    These amounts may also be referred to as balancing charges or as claw-back. See infra ch. 17, notes 170-71.

    See generally supra ch. 14 sec. VI(F).

    Where the debt is a fixed-interest security, this may come about because a general rise in interest rates has resulted in a reduction in the value of the debt, so that the debtor is able to repurchase the debt for less than its face value. It may also come about under a debt-defeasance arrangement whereby a borrower liable to repay a loan at some future date pays a third party an amount approximating the present value of the loan in consideration of the third party’s agreeing to pay the amount owed by the borrower when it becomes due. Finally, it may come about because the value of the debt has decreased because the debtor is in financial difficulties.

    E.g., LSO ITA § 19(2); UGA ITA § 19(1)(a); USA IRC § 61(a)(12).

    E.g., UGA ITA §§ 19(3), 39(3) (insolvency); USA IRC § 108 (insolvency or in formal bankruptcy proceedings). Some countries apply this rule in all cases and not just to debtors in financial difficulties. See, e.g., AUS ITAA (1936) sched. 2C; CAN ITA § 80 et seq.

    It may be preferable to deal with the last two of these specific inclusions with general inclusion rules applying to all types of income (and not just business income). If general rules are used, it will be necessary to provide rules concerning the category of income into which these items fall.

    For example, it may be provided that expenses incurred in deriving investment income may be deductible only against investment income. See infra sec. VI(A)(3).

    In some countries, the limit must be calculated separately for different types of income. E.g., USA IRC § 904.

    See infra sec. IV(D). The issues raised here are similar to those that arise under the valueadded tax (VAT) for input credit, and the reader might usefully compare the discussion in vol. 1, at 219-20.

    USA IRC § 162, for example, has retained the phrase “ordinary and necessary expenses.”

    This was the rule in early Australian and Canadian income tax laws. GBR ICTA § 74(a) has retained this phrase. It is still also found in many income tax laws derivative of U.K. principles. E.g., KEN ITA § 15; SGP ITA § 14; ZMB ITA § 29.

    This has been the experience in the United States. See Welch v. Helvering, 290 U.S. 111 (1933) and Commissioner v. Tellier, 383 U.S. 687 (1966).

    In the case of GBR ICTA § 74(a), see Ransom v. Higgs [1974] 1 WLR 1594.

    E.g., LSO ITA § 33.

    See Commissioner v. Idaho Power Co., 418 U.S. 1 (1974) discussed in ch. 17 infra at note 57.

    The exhaustive-list approach seems to be favored by jurisdictions with a history of central planning. See, e.g., MNG BEIT § 5(1); CHN EIT § 6.

    There is, however, a line of U.K. judicial authority that suggests that some business expenses, such as damages or fines, may be incurred by traders (including legal persons) in a personal capacity. See Strong & Co. Ltd. v. Woodifield [1906] AC 448 (brewery company held to incur damages in its capacity as householder rather than innkeeper). This authority now has little impact, particularly outside the United Kingdom, as later courts have distinguished the decision and largely confined it to the particular facts of the early cases.

    See supra ch.14, sec. IV(B).

    See BEL CIR § 53/10; DEU EStG § 4 V 7; Klaus Tipke & Joachim Lang, Steurrecht 261-63 (13th ed. 1991).

    This approach is used in Australia. The limited efficacy of this approach prompted the government to adopt specific hobby expense restrictions in 1985, but political and technical difficulties led to their withdrawal, and tax authorities continue to rely on the business definition as the sole means of restricting deductions for hobby expenses.

    E.g., USA IRC § 183. The regulations under § 183 list nine factors to consider in characterizing a taxpayer’s activities. It is made clear in the regulations that the list is not exhaustive and that no one factor or even a majority of factors is decisive.

    See infra sec. IV(A)(2).

    See USA IRC § 183(d).

    For example, a farmer may be forced to take a job in town during a period of adverse seasonal conditions or a period of depressed commodity prices. During this period, the farming activity may not be the farmer’s principal source of livelihood nor may the farming activity be profitable, but this should not prevent the farming activity from being treated as a business.

    A benefit is a business advantage that does not involve the acquisition of any asset, such as, for example, the reduction of competition. See Graeme Cooper et al., Cooper, Krever & Vann’s Income Taxation 10-34 to 10-54 (1993).

    For example, Canada uses a residual amortization rule that allows a taxpayer to recognize expenditures for wasting benefits not covered by other depreciation provisions on a 7 percent declining-balance basis. Not all the cost is recognized; see CAN ITA § 14.

    Australia, for example, has adopted this approach.

    Such expenditures never recognized for tax purposes are sometimes known colloquially as “nothings” (as in Canada prior to the adoption of the residual amortization rule in that jurisdiction), or “black holes,” the term gaining currency in Australia.

    See infra sec. IV(D)(4).

    See, e.g., AUS ITAA (1997) § 26-5; EST IT § 16(4); LSO ITA § 33(3)(e); UGA ITA § 23(2)(h).

    See, e.g., GBR ICTA § 577A (expenditure incurred in making a payment where the making of the payment constitutes the commission of a criminal offense); USA IRC § 162(c); OECD, Implementation of the Recommendation on Bribery in International Business Transactions, 4 OECD Working Papers, No. 34 (1996).

    E.g., EST IT § 16(3); LSO ITA § 33(3)(b); SGP ITA § 15(l)(g); UGA ITA § 23(2)(d).

    See infra ch. 18.

    See vol. 1, at 68. It may be concluded that no explicit deduction prohibition is needed where deductions are not to be given for income taxes paid to another level of government as the payment may not satisfy the positive nexus tests in the deduction provisions (because the tax is not considered an expense of earning income). This means that if recognition is to be provided for another domestic income tax by way of deduction (e.g., USA § IRC 164), a specific allowable deduction or tax offset provision will be needed.

    E.g., AUS ITAA (1936) § 221YRA(1A) (no deduction for royalties paid to a person outside Australia until withholding tax paid to the Commissioner).

    E.g., AUS ITAA (1997) § 900-70 (car expenses) and § 900-80 (business travel). These rules apply only to individuals and partnerships in which an individual is a partner.

    See infra sec. IV(B).

    E.g., AUS ITAA (1997) § 32-5 (entertainment expenses deductible only if the value of the benefit is included in the recipient’s income, is subject to fringe benefits taxation, or in other limited cases); UGA ITA § 24 (entertainment expenses deductible only if the value of the benefit is included in the recipient’s income or the entertainment is supplied to the public as part of the taxpayer’s business).

    E.g., CAN ITA § 67.1 (deductible amount is 80 percent of the expenses incurred); IND ITA § 37(2) (first 10,000 rupees is deductible plus 50 percent of the excess); LSO ITA § 33 (deductible amount limited to 50 percent of the expenses incurred); NZL ITA § 106G (deductible amount is 50 percent of the expenses incurred); USA IRC § 274(n) (only 50 percent of expense is deductible).

    E.g., AUS ITAA (1997) §§ 26-45 (recreational club facilities) and 26-50 (leisure facility or boat); CAN ITA § 18(l)(l); NZL ITA § 106G.

    E.g., UGA ITA § 23(2)(f).

    See infra sec VI(A).

    E.g., LSO ITA §§ 95, 96.

    E.g., CAN ITA § 18(l)(n) (political contributions).

    In some jurisdictions, the term “property income” or “capital income” may be used.

    See also supra ch. 14, sec. IV.

    E.g., LSO ITA §§ 17(l)(c), 20; UGA ITA §§ 18(l)(c), 21.

    E.g., LSO ITA § 20.

    E.g., EST IT § 9; IDN LCIT § 4; SGP ITA § 10.

    See supra text at notes 24 and 25.

    If the nonresident withholding tax rules do not apply, then it is often fairly easy to structure the transaction so that the income derived by the nonresident has a foreign source.

    See infra ch. 18, note 9.

    E.g., AUS ITAA (1936) § 27H; ZAF ITA § 10A.

    E.g., UGA ITA § 3 (definitions of interest and debt obligations).

    E.g., UGA ITA § 3 (definition of interest).

    See generally Murray v. ICI Imperial Chemical Industries Ltd. [1967] 2 All E.R. 980, at 982-83.

    AUT EStG § 28 (1)3; DEU EStG § 21(1).

    NLD WIB § 22/1 (b).

    BEL CIR § 17 par. 1/4.

    See generally infra ch. 18, sec. IV(E).

    Prior to 1992, the definition of royalty in the OECD Model Treaty also included amounts received for the use of, or right to use, any industrial, commercial, or scientific equipment (i.e., amounts received under a lease of movable property). The OECD Model Treaty was amended in 1992 to exclude such amounts from the definition of royalties with the intention of bringing them within the business profits article. Notwithstanding this, the definition of royalties in the domestic tax law of some countries still includes such amounts. See, e.g., AUS ITAA (1936) § 6; KEN ITA § 2; LSO ITA § 3; UGA ITA § 3; ZMB ITA § 2.

    JPN Corp TL 138(7); KEN ITA § 2; VGA ITA § 3. See further infra ch. 18, sec. IV(E).

    E.g., UGA ITA § 2 (definition of rent).

    E.g., AUS ITAA (1936) § 18; EST IT § 6; IDN LCIT § 12; LSO ITA § 49; UGA ITA § 40.

    An example is the use by a partnership of a substitute tax year to defer tax. See infra ch. 21, sec. II(B)(4). Another example involves taxpayer A paying at the end of its tax year a deductible expense to taxpayer B. If B is on a different tax year, B may not be taxed on the payment until later.

    For example, a case for using a substitute tax year may be established by a corporate taxpayer where the taxpayer belongs to a group of taxpayers (including foreign entities) with a group balance date for business accounting purposes that differs from the normal tax year.

    See generally Dale Chua, Loss Carryforward and Loss Carryback, in Tax Policy Handbook 141 (P. Shome ed. 1995). Examples of unlimited loss-carryforward rules are AUS ITAA (1997) § 36-15; GBR ICTA § 393 (there is also a three-year loss-carryback rule in ICTA § 393A); NZL ITA § 188; ZAF ITA § 20; SGP ITA § 37; ZMB ITA § 30. Other countries with unlimited carryovers include Belgium, Germany, Ireland, Luxembourg, and Sweden. See Commission of the European Communities, Report of the Committee of Independent Experts on Company Taxation 242 (1992).

    For example, a large backlog of loss carryovers, which resulted from a combination of factors, such as inadequate definition of inflation adjustment and abuse of tax holiday provisions, threatened to undermine the corporate income tax in Argentina in the late 1980s and early 1990s. See vol. 1, at 464-65.

    See, e.g., EST IT § 21; FRA CGI §§ 156(I) and 209(I); HUN CTDT § 17(I); IDN LCIT § 6 (the Minister of Finance may decree that an eight-year period applies to specific types of businesses). Five-year periods are also allowed in Denmark, Greece, Italy, Japan, Portugal, and Spain. See Commission of the European Communities, supra note 92, at 242.

    See CAN ITA § 111 (a three-year carryback rule also applies); CHE LIFD § 67(I); Commission of the European Communities, supra note 92, at 242.

    See IND ITA § 72.

    See USA IRC § 172.

    See infra sec. IV(B)(5) (foreign currency losses); VI(B) (capital losses); USA IRC § 469 (passive activity losses).

    See infra ch. 20.

    See infra appendix (France, Germany).

    In Australia, the courts have made it clear that a taxpayer’s method of accounting is to be determined according to legal principles and not according to generally accepted accounting principles. Nonetheless, the courts have developed legal principles that, in most cases, bear a close relationship to accounting principles.

    E.g., EST IT § 37 (an individual may use either the cash or the accrual basis of accounting for business income, but other taxpayers must use the accrual method); LSO ITA § 50 (a taxpayer may account on a cash or an accrual basis except when gross income for a tax year exceeds a monetary threshold, in which case the taxpayer must account for business income on an accrual basis in all subsequent years); UGA ITA § 41 (a taxpayer may account on a cash or an accrual basis, provided that the tax method chosen conforms to generally accepted accounting principles and subject to the tax commissioner’s power to prescribe otherwise in particular cases).

    E.g., LSO ITA § 50. See supra note 102.

    For example, suppose the law is changed to require capitalization of certain costs of producing inventory that could be deducted under prior law as current expenses. An effect of this rule would be to increase the value of opening inventory for the tax year in which the changed method is first applied. This would lead to a gap because the opening inventory would exceed the prior year’s closing inventory (valued under the old method).

    But see USA IRC § 481 (three-year spread).

    For example, Hungary requires taxpayers who are above the threshold for two consecutive years to change from cash-basis accounting to accrual-basis accounting and allows, at the taxpayer’s option, unincorporated taxpayers to switch from accrual-basis accounting to cash-basis accounting if their taxable incomes fall below the threshold for two years. See Act XVIII of 1991, Accounting Act § 13.

    For an explanation of tax offsets see ch. 14, sec. XL

    E.g., UGA ITA § 58.

    See vol. 1 at 460-62.

    This is the case in the United States. See North American Oil Consolidated v. Burnet, 286 U.S. 417 (1932).

    E.g., UGA ITA § 45(l).

    See supra sec. IV(B)(1).

    This approach was adopted by the courts in the United States. See U.S. v. Lewis, 340 U.S. 590 (1951). In certain circumstances, under IRC § 1341, an adjustment is made to the current year based on the tax reduction that would have resulted by excluding an amount from income in the prior year.

    See ch. 14, sec. III(D)(2).

    See supra sec. IV(B)(3), and infra sec. IV(C)(1) and (D)(l) for the treatment of amounts due or payable that are subject to uncertainty as to legal rights or obligations.

    While the foreign currency translation rules discussed in section IV(B)(2), above, apply in determining the amount in national currency of the income derived or the expenditure incurred in these cases, the taxpayer may actually hold the foreign currency for longer than the exchange day.

    For example, Canada, New Zealand, and the United States have adopted accrual-basis taxation for some financial instruments, and Australia proposes to do so.

    See vol. l, ch. 13.

    See supra sec. IV(B)(2).

    See infra sec. VI(C).

    A cash-basis taxpayer who has provided a customer with goods or services may find it impossible to collect payment. Usually, tax systems provide no special rules for debts in this situation, although the taxpayer may be able to recognize the loss under general provisions or, in some cases, under capital gain and loss rules.

    E.g., AUS ITAA (1997) § 25-35; CAN ITA § 20(1)(p) (moneylenders and insurers); IND ITA § 36(l)(a),(2).

    See generally Julio Escolano, Loan Loss Provisioning, in Tax Policy Handbook 145 (P. Shome ed. 1995).

    In countries that use the reserve method, the law may stipulate that the bad debt reserve is such amount as the administration considers reasonable given the taxpayer’s circumstances. With such a rule, though, the practice often develops that the administration allows all taxpayers to claim an arbitrary amount as the bad debt reserve. Taxpayers who want to claim a reserve in excess of that amount then have to make a case to the tax commissioner.

    For example, the rule is established by judicial doctrine in Australia.

    E.g., CAN ITA § 20(l)(m), which requires that payment be for goods or services that it is “reasonably anticipated” will have to be delivered or rendered after the end of the year. See also USA IRC § 455 (deferral of prepaid subscription income).

    For example, in the United States, tax authorities have interpreted tax accounting rules to deny deferral of income related to goods and services to be provided in future years, but have adopted some exceptions, such as a ruling that allows taxpayers to recognize income for services over two years in some cases (Rev. Proc. 71-21, 1971-2 CB 349) and to defer recognition of payment for the sale of some types of inventory and other specified assets (Treas. Reg. § 1.451-5).

    See supra sec. IV(B)(3).

    See, e.g., CAN ITA § 20(7).

    E.g., USA IRC § 453.

    It has been observed that the U.S. rule results in a reduction of tax liability compared with a vendor who receives the whole price at the time of disposal. This is because no account is taken of the effect of time on the value of money in determining the amount of each taxable installment. See Marvin A. Chirelstein, Federal Income Taxation 284-85 (1994).

    E.g., AUS ITAA (1936) § 256; CAN ITA § 16(1); USA IRC § 63(b).

    E.g., AUS ITAA (1936) § 160ZD(l)(a); USA IRC § 453(b)(2), (e), (g), (k) (providing circumstances under which installment method does not apply).

    This will not always be the case. For example, a contract may be of the cost-plus type or may involve an incentive fee.

    E.g., UGA ITA § 46.

    A variant is the cost-plus-incentive-fee contract, where the contractor’s profit margin may vary depending on the extent of cost overruns, timeliness of completion, or other factors. The various kinds of contracts are described here for information; they should not be defined as separate categories for tax purposes.

    E.g., USA IRC § 460.

    E.g., UGA ITA § 46 (loss carryback allowed only with the permission of the tax commissioner).

    An exception is Indonesia, where it is provided that costs of earning income that have a useful life of more than one year may not be deducted at once, but rather are to be deducted under the amortization rules. The position under the Indonesian income tax conforms closely to the theoretical model outlined in the text. See IDN IT §§ 6(1)b, 9(2), and 11(10).

    E.g., AUS ITAA (1936) § 82KZL-82KZO. This applies to all types of prepayments, but does not apply where the benefit is provided within 13 months of the date the expenditure was incurred, where the prepayment is required by legislation or court order, or where the prepayment is less than A$1,000.

    Such as for bad debts of financial institutions. See secs. IV(B)(6) and VI(D).

    See infra ch. 17, sec. II(B).

    See infra ch. 17, note 50.

    Where a pooling depreciation system is used (see infra ch. 17, sec. III(G)), the 5 percent threshold can he applied by considering expenditures on all assets in a pool relative to the value of the pool.

    See generally Dale Chua, Inventory Valuation, in Tax Policy Handbook 139 (P. Shome ed. 1995).

    See supra sec. II(C)(2).

    In jurisdictions that rely on British legal concepts, inventory is commonly referred to as “trading stock.”

    Singapore is an example of such a jurisdiction.

    E.g., AUS ITAA (1997) § 70-10.

    It is possible that an asset may change status. For example, a motor vehicle dealer may take his or her private motor vehicle into inventory, or vice versa. The tax consequences of a change in status of an asset are discussed in sec. V(E)(1), below.

    E.g., UGA ITA § 47.

    E.g., AUS ITAA (1997) § 70-35.

    A variation on this approach applies in New Zealand where taxpayers are allowed a deduction for the cost of inventory and a deduction for the value of opening inventory, while the value of closing inventory is included in gross income. See NZL ITA §§ 85, 104.

    This may arise, for example, because of damage, deterioration, or obsolescence.

    E.g., AUS ITAA (1997) § 70-45; NZL ITA § 85(4).

    Ordinarily, general, administrative, and selling expenses are not included in the cost of inventory. See, e.g., USA IRC 263A and the regulations thereunder (in 1986, the types of expenses required to be included in the cost of producing inventory were substantially broadened). As an economic matter, however, all costs incurred by a firm should ultimately be recovered as part of the cost of production, so that arguably all expenses of a firm should be allocated to costs of production. Such a rule would also be simpler to administer, because it would minimize the requirement to draw distinctions among different types of costs. See Victor Thuronyi, Tax Reform for 1989 and Beyond, 42 Tax Notes 981-96 (Feb. 20, 1989).

    E.g., UGA ITA § 47(5).

    Special rules for valuing closing inventory apply under comprehensive inflation-adjustment systems. See vol. 1, ch. 13.

    See McLure et al., The Taxation of Income from Business and Capital in Colombia 239-40 (1990).

    E.g., AUS ITAA (1936) § 73B (immediate deductions range from 100 percent to 125 percent of the relevant expenditure incurred); LSO ITA § 40 (immediate deduction); UGA ITA § 33 (immediate deduction); USA IRC § 174 (at the taxpayer’s election, research and experimental expenditures may be immediately deductible or amortized over five years).

    See generally Stanley S. Surrey & Paul R. McDaniel, Tax Expenditures 211-12 (1985).

    The concept of an asset is used in this discussion in preference to the concept of property that is used in some tax laws (e.g., IDN IT § 4(1)d (“gains arising from the sale or transfer of property”)). In its ordinary meaning, an asset is any thing that may be turned to account. Depending on general law meanings, the notion of property may not be interpreted this broadly. For example, legally enforceable rights that are purely personal in nature may not be regarded as property.

    For example, specific rules may apply to inventory, depreciated or amortized assets, and assets subject to capital gains taxation.

    Rather than artificially “deem” that a disposal has occurred when one has not, an alternative approach is to define the situations in which gains and losses are brought to account as taxation “events”—see, e.g., AUS ITAA (1997), proposed Div. 104.

    It is suggested that this is the case for residence change situations. See ch. 18, sec. VI(E).

    Market value consideration will be recognized when an asset moves in or out of the tax system (see supra sec. V(A)), while consideration equal to cost will be recognized in most cases when an asset changes tax status (see infra sec. V(E)(1)).

    While much tax terminology is similar in different countries, this is not the case for “cost base” and its equivalents. It is in fact more than a difference in terminology and has to do with differences in the structure of income tax laws. The United States has an underlying concept of “basis” (and adjusted basis), which is used throughout the income tax law for such purposes as computing capital gains or depreciation deductions (e.g., the term adjusted basis is used more than 300 times in the Internal Revenue Code). The concept is defined in USA IRC §§ 1011-1016. Similarly, Australia has the concept of cost base of assets, which is defined in AUS ITAA (1936) § 160ZH, but this concept is not as pervasive in the tax law as is the American concept; it does not govern depreciation deductions, for example, which are determined according to the cost of plant. See ITAA (1997) § 42-60 to 42-90. The Canadian approach is similar. See CAN ITA § 54 (adjusted cost base). Most countries do not have a formal underlying concept of basis. They might refer to the cost or acquisition cost of assets in rules for determining capital gains. For example, the Spanish law refers to the acquisition value in its capital gains rules. See ESP IRPF § 46. France similarly refers to the acquisition price. See FRA CGI § 150 H. The United Kingdom uses the concept of cost both for capital gains purposes and for purposes of determining qualifying expenditure for depreciation purposes. In contrast, Germany, like the United States, has an underlying concept for the valuation of assets, namely, Buchwert (book value). The concept of Buchwert is used both for purposes of computing capital gains and for purposes of the balance-sheet method of determining taxable income (for which, see appendix infra). See DEU EStG §§, 6b(2). In most cases, the Buchwert of an asset for purposes of German tax law will correspond to the concept of adjusted basis as used in U.S. tax law.

    See infra sec. IV(D)(3).

    E.g., UGA ITA § 53(5).

    E.g., AUS ITAA (1936) § 160ZI. Another approach, not recommended, is to allocate cost on a pro rata basis using features of the property sold, such as the size of a part of immovable property sold compared with the size of the part retained. Given that it is only by chance that there would have been a consistent movement in the market value of the respective parts of the asset since the original asset was acquired, this approach is likely to lead to inappropriate allocations of original cost.

    See supra sec. IV(D)(4).

    This possibility can be confined to individuals carrying on a business, because all assets of a company or partnership should be deemed to be business assets. See supra sec. II(B)(2).

    E.g., AUS ITAA (1997) § 70-110.

    This approach corresponds to the deemed disposal on conversion of assets to business assets—see supra sec. IV(A).

    AUS ITAA (1936) § 160L.

    AUS ITAA (1936) §§ 159GP-159GZ; CAN ITA § 12(3), (4), and (9); ESP § 37 Uno 2(A) (rendimientos implicitos); but see, to the contrary, FRA CGI § 125-0 A (capitalized interest taxed only at the time of the expiration (déenouement) of the contract, so that the taxpayer has a timing advantage in capitalizing the interest).

    Some countries do attempt to apply accrual tax rules although the payment of interest is subject to withholding tax. When payment of interest is deferred by capitalizing it into discounts, premiums, or other forms of capital gains, the rules on withholding tax should provide that the tax becomes due by the payor on any portion of the gain, premium, or discount that has accrued during the taxable period. In such cases, withholding tax is to be paid on an annual basis before effective payment of the income. See further BEL CIR §§ 19(3), 267.

    See supra sec. III(A).

    See vol. l, ch. 13, sec. IV(A).

    See vol. l, ch. 13, sec. IV(D).

    For example, lower rates of tax on interest, including zero rates, may be prescribed by treaty.

    See infra ch. 18, sec. V(G)(2).

    BEL CIR art. 14; CAN ITA § 20(1)(c); FRA CGI art. 31/1 (d); USA IRC § 25. The U.S. provision is considered by some commentators to be excessively complicated.

    See NLD W1B § 45/1 f, with some limitations in arts. 45/3 and 5; CHE LIFD § 33(1)(a).

    The term “finance lease” is commonly used in tax literature. Commercial accounting rules use the term “capital lease.”

    See Gustav Lindencrona & Stephan Tolstoy, International Fiscal Association General Report, Taxation of Cross Border Leasing 21, 30 (75a Cahiers de droit fiscal international) (1990).

    E.g., CAN Income Tax Regulation 1100(1.1); LSO ITA § 68; UGA ITA § 60.

    See supra sec. III(A).

    The term “minimum lease payments” is intended to include regular “rental” payments plus any supplemental mandatory payments (e.g., the amount of a lessee guarantee of residual value).

    See generally John King, Taxation of Capital Gains, in Tax Policy Handbook 155 (P. Shome ed. 1995).

    Australia provides an excellent example of the problems that can be encountered if capital gains provisions are used to catch gains that fall outside the judicial income tax base, such as payments for entering into negative covenant (noncompetition) agreements and payments for agreeing not to pursue contractual rights. In Australia, this was first attempted by resort to complex and highly artificial deeming provisions. The courts rejected them as virtually meaningless. A second, and more complex, redraft was needed. Rather than simply adding these gains to the ordinary income tax base, the government now proposes to replace the artificial deeming provisions with legislation defining capital gains “events.”

    Examples include many European jurisdictions.

    Examples of jurisdictions with exemptions for these assets include Australia and Canada.

    See vol. 1, ch. 12.

    Short-term insurance as used here includes property and casualty insurance and term life insurance, provided the term of insurance is not beyond one year or so. Life insurance with longer terms raises other issues that are beyond the scope of this book.

    Premiums paid in respect of unexpired risks may be treated as unearned income.

    E.g., UGA ITA § 17 and fourth sched.; ZAF ITA § 28(2); ZMB 1TA § 25 and third sched.

    In other words, the taxpayer determines (assesses) the amount of tax due and files (lodges) the tax return.

    The uplift system is used, for example, in Australia for individuals deriving business and investment income.

    See, e.g., KAZ TC § 51.

    Provisions for uplift estimates need not be explicit. The United States imposes an implicit requirement by levying additional tax on large corporate taxpayers whose estimated tax payments are less than actual tax. See USA IRC § 6655(d)(2).

    E.g., AUS ITAA (1936) §§ 221YHA-221YHZ.

    See, e.g., Regulations for the Implementation of the Individual Income Tax Law § 21 (State Council, People’s Republic of China, Jan. 28, 1994) (consolidation of payments).

    See, e.g., CAN ITA §§ 212(1)(d), 215(1).

    See, e.g., CAN ITA § 212(1)(c).

    See, e.g., Charles McLure & Santiago Pardo, Improving the Administration of the Colombian Income Tax, 1986-88, in Improving Tax Administration in Developing Countries 124, 126-27 (Richard Bird & Milka Casanegra eds. 1992).

    See footnote 28 and accompanying text in that chapter.

    See supra sec. III(C).

    See generally Commission of the European Communities, Report of the Committee of Independent Experts on Company Taxation 50-51, 195 (1992); Guido de Bont et al., Fiscal Versus Commercial Profit Accounting in the Netherlands, France, and Germany (1996).

    IAS 1.

    IAS 5.

    See particularly the Fourth Company Directive—78/660/EEC, and the Seventh—83/319/EEC.

    The discussion in this section is based on Brigitte Knobbe-Keuk, Bilanz- und Unternehmenssteuerrecht (9th ed. 1993).

    Handelsrechtliche Grundsätze ordnungsmäßiger Buchfuhrung (GoB).

    See vol. 1, ch. 13, for further discussion of the net worth method. The net worth method is set forth clearly in the income tax laws of France and Germany. See FRA CGI § 38; DEU EStG § 4. Under certain circumstances, certain types of income are determined as the difference between income and expenses, instead of being determined by the net worth method. Those familiar with the Haig-Simons concept of income, which also uses a net worth concept, may misunderstand what the net worth method involves. Unlike the Haig-Simons concept, the net worth method generally does not involve mark-to-market taxation, because it uses the book value, rather than the fair market value, of assets on the balance sheet in determining net worth (except in cases where book value is determined according to fair market value).

    The discussion in this section is based on Memento Pratique Francis Lefebvre Comptable 1991, at 28-30 (1990).

    This is approximately equivalent to the “all events” test for accrual accounting in the United States. See Treas. Reg. § 1.446-1 (c)(1)(ii) (“Generally, under an accrual method, income is to be included for the taxable year when all the events have occurred that fix the right to receive the income and the amount of the income can be determined with reasonable accuracy. Under such a method, a liability is incurred, and generally is taken into account for Federal income tax purposes, in the taxable year in which all the events have occurred that establish the fact of the liability, the amount of the liability can be determined with reasonable accuracy, and economic performance has occurred with respect to the liability”).

    See USA IRC § 472(c).

    See Tax Reform Act of 1986, P.L. 99-514, 100 Stat. 2085, 2326, sec. 701 (1986). The relevant provisions, codified at IRC § 56(f), were subsequently repealed.

    See Brian Arnold et al., Canadian Income Tax 290 (19th ed. 1993).

    See Brian Arnold, Canada, 10 Tax Notes lnt’1 1533 (May 1, 1995); Brian Arnold, Supreme Court of Canada Discusses Financial, Tax Accounting, 16 Tax Notes Int’l 730 (Mar. 9, 1998).

    See CZE ITA § 23(2); SVK ITA § 23(2); LVA EIT § 14; SVN PT § 9.

    See EST IT § 37(1).

    Instructions on the Payment to the Budget of Income Tax on Enterprises, § 5.1.

    This is why the tax codes of Georgia and Kazakhstan, and the enterprise profit tax law of Ukraine, do not refer to accounting norms (unlike the Latvian law, accounting reform in that country having proceeded at a much more rapid pace).

    See ROM PT § 4(3); LVA EIT § 6(3); GEO TC § 52(2); KAZ TC § 18(2).

    Note: Victor Thuronyi, Leif Muten, Alvin Warren, Victoria Summers, Philip Dawicki, and Melinda Milenkovich made numerous helpful comments on earlier drafts. I would like to give special thanks to Emil Sunley, who took considerable time to disabuse me of many a theoretical error and who provided particularly close commentary on earlier drafts.

    There are other problems. The most important of these is that accounting for accrued gains only when the property is transferred (or scrapped) turns into, in part, a tax on the act of engaging in transactions. This can result in inefficiencies owing to the so-called lock-in effect, where taxpayers avoid selling or exchanging their property. On the other hand, if there were no current accounting for decreases in value, there could be a corresponding “anti-lock-in effect,” resulting in an incentive to sell or transfer the property. See Daniel N. Shaviro, An Efficiency Analysis of Realization and Recognition Rules Under the Federal Income Tax, 48 Tax L. Rev. 1, 4–5 (1992).

    There are other techniques for taking account of the time value of money when gains or losses are not accrued currently. See the discussion infra at text accompanying note 12 regarding the application of estimated interest charges on deferral values, and at text accompanying note 13 regarding first year capital recovery.

    See generally Dale Chua, Depreciation Schedules, in Tax Policy Handbook 136 (P. Shome ed. 1995).

    The term “useful life” here means the period during which the property would be held for the production of income. At least by the end of the property’s useful life, the taxpayer would dispose of it. However, this does not necessarily mean that the property would at that point be completely worthless. It may have a residual value, often referred to as “scrap” value.

    If the property has a life greater than the current tax year, a full deduction would result, interest and tax rates remaining equal, in an exemption from tax of any net income, except for economic rents. See Institute for Fiscal Studies, The Structure and Reform of Direct Taxation (Report of Committee chaired by J.E. Meade) 231–32 (1978). However, it would be possible to take only a partial deduction. See infra note 13 and accompanying text.

    See generally the discussion of the role of compensating distortions in a comprehensive income tax in Boris I. Bittker, A “Comprehensive Tax Base” as a Goal of Income Tax Reform, 80 Harv. L. Rev. 925, 983–84 (1967).

    See Jeff Strnad, Taxation of Income from Capital: A Theoretical Reappraisal, 37 Stan. L. Rev. 1023, 1027–28 (1985). See also Example 1 infra sec. III(A).

    The value of the property may decrease for various reasons. One common way is for it to lose efficiency and therefore its productivity. As output drops, so does income; as a result, its value necessarily declines.

    Nominal errors in useful lives can be corrected by “recapturing” excess depreciation deductions or by allowing additional deductions when the property is transferred or becomes worthless. See infra sec. III(E). However, even with such corrections, if each yearly allowed depreciation amount varies from the actual, there can be a considerable tax effect owing to the time value of money. See Paul Samuelson, Tax Deductibility of Economic Depreciation to Insure Invariant Valuations, 72 J. Pol. Econ. 604 (1964); Jeff Strnad, Periodicity and Accretion Taxation: Norms and Implications, 99 Yale L. J. 1817, 1822, 1865–79 (1990).

    An estimate for depreciation is not necessary if the actual decline in fair market value of the property is known. There may be other instances where actual declines in value can be ascertained without a property transfer. In the majority of instances, jurisdictions do not allow such evaluations outside of the system of depreciation. There are two important exceptions. The first is property held as inventory or trading goods. The other involves the use by certain jurisdictions of “extraordinary provisions.” See infra notes 140, 142.

    In fact, such a system could be used to compensate for all accrued but unrealized changes in the value of property. See Mary L. Fellows, A Comprehensive Attack on Tax Deferral, 88 Mich. L. Rev. 722, 728–31 (1990).

    The tax administration could construct tables for taxpayers to use in estimating the value of the lost depreciation deductions. See David J. Shakow, Taxation without Realization: A Proposal for Accrual Taxation, 134 U. Pa. L. Rev. 1111, 1118–23 (1986). Of course, this does not solve the problem of unpredictable annual variations in the value of the property.

    Alan Auerbach and Dale Jorgenson, The First Year Capital Recovery System, 10 Tax Notes 515 (Apr. 14, 1980).

    See infra note 140 and accompanying text.

    Although frequently used, the distinction between physical and nonphysical (also referred to as tangible and intangible, or material and nonmaterial) is not always obvious. For example, is computer software physical or nonphysical?

    See supra ch. 16.

    Except for de minimis rules, which would allow an immediate deduction for relatively small costs. See the discussion at the text accompanying notes 44–48 infra.

    See generally Fellows, supra note 11, at 768–70 (1990).

    However, it may be difficult to make distinctions among such different costs. When the costs are distinguished, the effect is to divide the property into different pieces, each of which is viewed separately. In theory, this could also be done for the different costs involved in the creation of an asset. Considerations of administrative ease may play the most important role in determining how such costs are treated. See the discussion infra at note 54. See also the discussion concerning de minimis rules below.

    See supra ch. 16, appendix. There are a number of benefits when financial and tax accounting treatment are equal; these benefits are pointed out throughout the chapter. However, in addition to the obvious benefit of simplicity, the most important benefit may be this: the tax incentive to overstate depreciation so as to minimize tax due can be significantly lessened by the disincentive not to understate income in financial reports. This effect will perhaps be greatest for listed companies, where pressure to report profits, and therefore boost share prices, may be greatest.

    This chapter refers to the tax laws of major industrial economies, primarily Australia, France, Germany, Japan, the United Kingdom, and the United States. The chapter also makes frequent reference to the tax laws of a sample of developing and transition economies that have recently undergone major tax reforms (primarily Indonesia, Kazakhstan, and Lesotho). The sample reflects the involvement of either the author or the IMF Legal Department in reforms in these countries and is intended to highlight techniques of adopting rules to developing and transition country circumstances. Finally, the chapter occasionally makes reference to other countries that may have an unusual rule in a particular instance.

    Property that has been manufactured by the taxpayer is included in this rule, as in general are any repairs that extend the life or term of the property. See FRA CGI art. 39-1-2°, FRA CGI Ann. III art. 38 quinquies, FRA Council of State Decision of July 18, 1941; JPN IT art. 31, JPN IT Reg. 21-7 I, II; DEU EStG § 7. The German rule explicitly allows a deduction of costs for maintaining property if the effect of the maintenance lasts for less than one year. DEU Einkommensteuer-Richtlinien (EStR) § 157.

    The French statute provides for “write-offs for depreciation actually taken … to the extent that such write-offs are generally justified according to the usage of each industry, commerce, or business….” FRA CGI art. 39-1-2°. This rule applies generally to all property both physical and nonphysical with a “predicted life” of more than a year. The cost of property with a life of more than one year cannot be deducted currently, and only assets with a life of more than one year may be depreciated. See, e.g., Decision of the Conseil d’Etat of Feb. 24, 1936 (FRA). The Japanese statute is similar to the French, as is a Japanese regulation. See JPN IT arts. 22(3), 31; JPN Rule 7. The German statute more specifically denies a current deduction, and limits depreciation, to property with a use “which extends by experience to a period of more than one year.” DEU EStG § 7(1).

    The Indonesia statute states that “the cost of earning, collecting, and securing income paid over more than one year may only be deducted through amortization….” Id. art. 9(11). “The acquisition price or value … shall be adjusted for … improvements, alterations, or additions” IDN IT art. 10(11).

    The original Income Tax Act 1842, Act 5 & 6 Vict. c. 35(1), S. 100, scheds. A, B, C & D, denied deductions for “capital withdrawn from or any sum employed … as capital in [a] trade.” The current U.K. statutory provision denying a deduction for capital is found in GBR ICTA § 74(f), (g).

    In 1879, a taxpayer coal company attempted to take deductions for depletion. The House of Lords upheld the disallowance of the deduction. “[T]he capital involved in making it would gradually be exhausted and lost; but the decaying character of the property would not make it the less subject to be taxed … so long as the mineral lasted.” Coltness Iron Company v. Black [1881] 6 A.C. 315, 327 (Lord Penzance) (emphasis added). Effectively, this would include as capital any property that lasts for more than a year, in that other property would become “exhausted” in less than a year, and the loss could be realized accordingly. Future cases further defined capital as something that was “not once and for all” but of “enduring benefit.” Atherton v. British Insulated and Helsby Cables Ltd. [1926] A.C. 205, 213–14 (Viscount Cave). Coltness and its progeny are still relied upon. See also Butterworths U.K. Tax Guide 1990–91 § 7:103. The idea of permitting a partial deduction to allow for depreciation was not considered.

    The British system did not, in fact, develop to permit deductions for depreciation. Instead, provisions were added to give “allowances” for “capital expenditure” for physical property. These “allowances,” in effect, were viewed not as rules essential to determine an accurate picture of actual income, but as a kind of concession. In other words, there was no importation of the rules or, for that matter, the theory, of financial accounting. The current rules providing capital allowances are found in GBR CAA §§ 1(1)(a); 22(1)(a); 35(1); 37(1)(a); 52(1)(a); 60(1)(b); 61(1)(a); 67A(1), (2); 68(1)(b); 159(1)(a). For depletion, See id. § 105(1). For certain nonphysical property see GBR ICTA § 520(1).

    The United Kingdom’s Income and Corporation Taxes Act disallows the deduction of “capital employed in improvements of premises….” GBR ICTA § 74(g) (emphasis added). Improvements to manufacturing plant would be nondeductible but would be depreciable, given that plant is itself depreciable. GBR CAA § 12.

    See, e.g., Commissioner v. Nchanga Consolidated Copper Mines, Ltd. [1964] A.C. 948, 959 (citing New State Areas Ltd. v. Commissioner for Inland Revenue, S.A.L.R. [1946] A.D. 610, 620, 621 (Watermeyer, C.J.)).

    See, e.g., Phillips v. Whieldon Sanitary Properties Ltd. (1952) 33 T.C. 213, 219 (Donovan, J.).

    See id.

    They are discussed in Butterworths U.K. Tax Guide 1990–91 (John Tiley ed., 9th ed. 1990) §§ 7:115–7:119.

    This confusing distinction is discussed in id. at § 7:119.

    See Walter W. Brudno & Frank Bower, Taxation in the United Kingdom 192 (Harvard World Tax Series 1957).

    For example, the Australian statute denies a deduction for “losses and outgoings of capital, or of a capital … nature,” AUS ITAA § 51(1) and has case law defining capital predicated on U.K. case law. See e.g., Sun Newspapers Ltd. v. Fed. Comm’r of Taxation (1938) 61 C.L.R. 337, 380 (citing Atherton [1926] A.C. 205). See also 1994 Australian Master Tax Guide ¶ 14-060. Unlike the British statute, the Australian statute does not specifically limit depreciation for physical property to capital items. However, for nonphysical property, the statute expressly limits allowances to expenditures of a capital nature. AUS ITAA § 124L(1)(a), (b). Somewhat akin to the British case law, improvement of capital property is generally capital and not deductible, while maintenance and upkeep are not capital and may be deducted; 1994 Australian Master Tax Guide ¶ 14-060. The Lesotho statute is also somewhat unclear on this point. It first denies a deduction for expenses “chargeable to capital account.” LSO ITA § 33(3)(c). However, the statute does not explicitly tie depreciation to costs that are so chargeable to “capital account.” Instead, it defines “depreciable asset” as “tangible movable property or an industrial building which is wholly or partly used in the production of income subject to tax and which is likely to lose value because of wear and tear, or obsolescence.” Id. § 3(1). Although implicitly this must refer to property whose usefulness extends beyond the taxable year, this is not stated outright. An “intangible asset,” for which depreciation may be allowed, is also not defined with reference to capital. The statute also allows for a deduction for “expenditure (other than expenditure of a capital nature) incurred on repairs to assets used in the production of income….” Id. § 42(1).

    USA IRC § 263(a)(1).

    The regulation reads that the statutory language refers to “a capital expenditure that is taken into account through … a charge to capital accounts….” USA Treas. Reg. § 1.263(a)-1(b). Examples of such capital expenditures include "buildings, machinery and equipment, furniture and fixtures, and similar property having a useful life substantially beyond the taxable year … a copyright … [t]he cost of goodwill….” Id. § 1.263(a)-2(a), (b), (h) (emphasis added). See also id. § 1.446-1(a)(4) (the regulations to the accounting rules under USA IRC § 446).

    See USA IRC §§ 263A (a), (b).

    There used to be a repair allowance as part of the Class Life Asset Depreciation Range System. See infra note 50.

    See, e.g., USA Treas. Reg. § 1.162-3; Fidelity Storage Corp. v. Burnet, 58 F.2d 526 (1932), rev’d 18 BTA 517 (1929) (roof repairs with new material are deductible), Georgia Car & Locomotive Co. v. Helvering, 2 BTA 986 (1925) (new roof not deductible); See generally 4 RIA United States Tax Reporter ¶¶ 1625.172–1625.185.

    This is buried in a completely different section concerning “methods of accounting.” “[A]s a further example … a liability that relates to the creation of an asset having a useful life extending substantially beyond the close of the taxable year is taken into account in the taxable year incurred through capitalization … and may later affect the computation of taxable income through depreciation….” USA Treas. Reg. § 1.446-1(c)(1)(ii)(A).

    Id. § 1.161-1.

    One article denies deductions to expenses for “fixed assets and other expenses of a capital character. . . .” KAZ TC art. 14(1). Another article defines fixed assets as “assets with a value over 40 minimum wages and a service life of more than one year which are subject to depreciation in accordance with art. 20.” Id. art. 5(18). Art. 20 states that assets subject to depreciation do not include “property the value of which is fully deducted in the current year in the determination of taxable income.” Id. art. 20(2), (3). Two additional articles involve “intangible assets,” for which depreciation is allowed under the provisions of art. 20. See id. arts. 23, 24- The Kazakh statute also includes a general provision denying more than one deduction to expenses “included in several expenditure categories….” Id. art. 14(2). There is a clear-cut rule with regard to costs of repairs: they are deductible, up to a fixed limit. This is discussed infra at the text accompanying notes 50–52.

    DEU EStG § 6(2).

    Id.

    JPN IT Rule 7; JPN IT Basic Circular Notice (195).

    USA IRC §§ 179(a), (b), (d)(1).

    Id.

    A number of other methods are also permissible. JPN IT Rule 7. See generally Yuji Gomi, Guide to Japanese Taxes 1994–95 ¶ 6-308.

    Under that rule, all expenditures for repair and improvement of “repair allowance property” that were not clearly capital expenditures could be treated as deductible to the extent that they did not exceed the repair allowance. The repair allowance was obtained by multiplying the repair allowance percentage by the average basis of the repair allowance property in the ADR (asset depreciation range) class. The repair allowance percentages for the various ADR classes were listed in a number of Revenue Procedures. USA Treas. Reg. §§ 1.167(a)-11(d)(2)(iii), 1.167(a)-ll(d)(2)(iii);Rev. Procs. 72-10, 77-10.

    The phrasing of this rule to apply to cumulative written-down values of classes of property is due to the use of pooling in the Kazakh statute. Pooling is discussed infra at sec. III(G).

    See KAZ T C art. 21.

    “In the case of business assets, if the use or exploitation thereof by the taxpayer in the obtaining of income extends by experience to more than one year [the rule describes how much is to be deducted each year]” DEU EStG § 7(1).

    See the German rule, supra note 22. However, an argument could be made that the effective life of each separate repair should be tracked separately, so that each can be depreciated separately. Although theoretically appealing, this would add to administrative inconvenience and would be a highly unusual provision; the author is not aware of any jurisdiction that does so.

    See supra note 23.

    See infra sec. III(G).

    A related issue was raised in Commissioner v. Idaho Power Co., 418 U.S. 1 (1974). That case involved the interrelation between IRC § 263 (which disallows deductions “paid out for new buildings or for permanent improvements or betterments”) and IRC § 167(a)(1) (which allows a deduction for depreciation of “property used in a trade or business”) (See also notes 36 and 64 and accompanying text). The taxpayer contended that § 167 existed independently of § 263, while the Commissioner contended that § 263 took precedence over § 167. The court found for the Commissioner. This is a good example of the need to spell out the interaction between provisions denying deductions and those allowing deductions, particularly the deduction for depreciation. See supra ch. 16, sec. II(C). See also KAZ TC § 15(3).

    This means that even if property is subject to a capital gains tax on sale or transfer, if it is not also held for the generation of taxable income currently, depreciation deductions should not be allowed.

    The German rule specifically restricts depreciation to “business” property used “in the obtaining of income” DEU EStG § 7(1). But See infra the discussion concerning apportionment at text accompanying notes 65–70.

    The Indonesian statute first generally restricts deductions for depreciation or depletion, allowing them only when they are a “cost of earning, collecting, and securing income,” and then more specifically restricts depreciation to property “owned and used in a business or owned for the production, recovery, or securing of income.” IDN IT § 11(1), (12).

    Capital allowances for each separate class are limited to property held “for the purposes of [a] trade.” GBR CAA §§ 1(1)(a); 22(1)(a); 35(1); 37(1)(a); 52(1)(a); 60(1)(b); 61(1)(a); 67A(1), (2)(b); 68(1)(b); 159(1)(a). For depletion, the rule is found in id. § 98(1), and for certain nonphysical property in GBR ICTA § 520(1).

    For example, the Australian statute includes a general rule limiting depreciation of physical assets to “plant or articles … used for the purpose of producing assessable income.” AUS ITAA §54(1). There is also a general rule that applies to depreciable nonphysical property. Id. §§ 124L(1), 124M. Other rules concerning depletion allowances for minerals carry similar restrictions. See, e.g., id. § 122DG(2). Lesotho has similar separate restrictions for physical property and nonphysical property, LSO ITA §§ 3(1), 44(1), and a specific rule for depletion. Id. § 43.

    Physical asset depreciation is limited to “capital goods used in production,” and intangible asset depreciation to “those utilized over a long period in economic activity.” KAZ TC §§ 20(1), 24(1).

    USA IRC § 167(a). However, a separate rule exists for depletion, which is restricted as well to a deduction against gross income. Id. § 613.

    See Direction général des impôts, Precis de fiscalité ¶ 517 (1994) [hereinafter Précis]; JPN IT § 31.

    AUS ITAA § 61; LSO ITA § 41(4).

    Treas. Reg. § 1.167(a)-5.

    GBR CAA §§ 1, 24(1)(a); G.H. Chambers (Northiam Farms) Ltd. v. Watmouth [1956] 3 All E.R. 485.

    DEU EStR § 14.

    See Klaus Tipke & Joachim Lang, Steuerrecht 295–97 (13th ed. 1991).

    The German rule should be seen in the light of capital gains tax being levied on property labeled business property but not (except for short-term gains) on private (nonbusiness) property.—L.M.

    It should be noted that it may be possible to estimate reductions in a property’s value attributable to wear and obsolescence on a current basis without knowing its useful life. However, knowing an asset’s useful life allows the mechanical application of a number of techniques for computing depreciation allowances.

    The French statutory provision does not expressly state this. See FRA CGI § 39-1-2°. However, decisions of the Council of State make clear that no property can be depreciated unless its useful life can be determined when acquired. See Decision of the Conseil d’Etat of Feb. 24, 1936, Recueil des décisions du Conseil d’Etat [Lebon] 236.

    FRA CGI Ann. III, art. 38 sexies.

    DEU EStG § 7(1), (6).

    DEU EStDV §§ 9a–11d, EStR §§ 42–59c.

    The Japanese statute is similar to the French. See JPN IT art. 31. While regulations do not specify that a useful life be determinable, this is implied by the fact that depreciation is based on the determined service life. JPN IT Reg. 21-3. See also JPN IT Basic Circular Notice 191-(3), which states that “since depreciable assets means assets the utility of which decreases gradually, objects of art and curios the value of which does not decrease despite the lapse of time are not included (emphasis added).”

    However, a provision may be made for extraordinary loss.

    See infra sec. II(E)(2).

    The previous system (in effect 1984–94) included no general restriction for physical property based on determinable useful lives. However, similar to the U.S. statute, all categories of such property (other than buildings) were assigned to classes based on property life. IDN IT art. 11(III). However, the Minister of Finance was empowered to issue a decree determining what types of property had what useful lives, making the system similar to the Kazakh one. Id. art. 11 (XIV). The new law switches to a financial-accounts-based system, predicated on expected useful lives; however, the Minister is to issue a decree fixing the useful lives of (at least some) types of property. IDN IT (1994) arts. 11(10), (11).

    IDN IT art. 11(X).

    Costs for industrial buildings, hotels, and dredging are all depreciated at 4 percent a year, GBR CAA §§ 3, 7, 134, and costs for machinery and plant, motor vehicles, mining, patents, and copyrights are all depreciated at 25 percent a year. Id. §§ 24, 67, 69, 70–72, 34, 98, 105; GBR ICTA § 520.

    See Butterworths U.K. Tax Guide 1990-91 §§ 8:12–8:14 (John Tiley ed., 9th ed. 1990).

    Depreciation is allowed only for costs of “plant or articles” and a “unit of industrial property,” which includes “rights” such as patents, copyrights, or designs. See AUS ITAA §§ 54(1), 124K(1), 124L. Depreciation is based on the “effective” life of the property, with six different spans of effective lives from fewer than 3 years to 30 or more. Id. §§ 55(1)–(5), 124M(1).

    LSO ITA § 3(1).

    Id. § 43; LSO ITA sixth sched.

    See LSO ITA § 44(2).

    USA IRC § 167(a).

    USA Treas. Reg. § 1.167(a)-2.

    There are essentially nine property classifications, of which six are based on useful lives, and three—residential rental property, nonresidential real property, and railroad grading or tunnel bores—are based on type; these last three appear to be rules of thumb. U SA IRC § 168(c)(1), (e)(1).

    USA Treas. Reg. § 1.167(a)-3.

    Id. See also X-Pando Corp. v. Commissioner, 7 T.C. 48, 53–54 (1946).

    USA IRC § 197.

    KAZ T C art. 20(1).

    Id. art. 20(3).

    Id. arts. 20(3)(3), 24.

    See supra sec. II(D).

    See the discussion supra concerning costs regarding self-creation or improvement of property. However, if they are related to depletion, they may not fall in value at the same rate as the mineral property and should have a separate depreciation provision.

    See infra sec. III(D).

    See Précis, supra note 65, ¶ 1082.

    DEU EStDV §§ 9a–11d.

    See JPN IT Reg. 21(I).

    IDN IT art. 11(I).

    KAZ TC art. 20(2)(1).

    USA Treas. Reg. § 1.167(a)-2.

    GBR CAA § 13.

    AUS ITAA § 54(2)(b) limits depreciation for “structural improvements on land” to “(i) fences, dams, and other structural improvements on land which is used for the purposes of agricultural and pastoral pursuits; (ii) structural improvements (not including an improvement that is an access road …) … on land that is used for the purposes of forest operations.”

    This is true of both French and U.S. rules, while British and Australian rules do not include goodwill as depreciable property. Supra sec. II(D).

    At least some evidence would suggest that advertising and promotional expenses have the effect of creating goodwill that lasts longer than a single year. See George Mundstock, Taxation of Business Intangible Capital, 135 U. Penn. L. Rev. 1179, 1186–89 (1987). Nevertheless, it is common for jurisdictions to permit the deduction of advertising and promotional expenses. See supra ch. 16.

    See id.

    Frequently, self-created goodwill is not designated as separate property until an enterprise is sold. Because of this, it is less likely that the issue of depreciating the costs of self-created goodwill would arise.

    DEU EStDV §§ 9a–11d; EStR §§ 42–59c. (Note that the seller of goodwill will normally have been taxed.—L.M.)

    USA IRC § 197(a), (c)(2), (d)(1)(D), (E), (F).

    For a summary of treatment in the EU, see Commission of the European Communities, Report of the Committee of Independent Experts on Company Taxation 254 (1992). In Kazakhstan, a single, arbitrary depreciation rate is fixed for all nonphysical property. KAZ TC § 24(2).

    Id. The Japanese generally allow the depreciation of goodwill, either as a fixed percentage or over a fixed period. Both, however, are determined by the taxpayer. JPN IT Reg. 21–3.

    Accounting for inventory is discussed supra ch. 16.

    See, e.g., KAZ TC art. 20(2)(2); USA Treas. Reg. § 1.167(a)-2(a).

    See Précis, supra note 65, ¶ 517; JPN IT art. 31; JPN IT Rule 3; DEU EStG § 6.

    AUS ITAA § 56(3).

    There have been instances where double deductions have been allowed. For example, in the United States, an investment credit was allowed for certain property. Originally, the amount of the credit had to be subtracted from the cost of the property for purposes of computing depreciation, but this rule was repealed in 1964. (Strictly speaking, a double deduction was not involved, but the effect of allowing a 100 percent deduction plus a credit is equivalent.) In 1982, Congress required the basis of property to be reduced by one-half the investment tax credit. Se Staff of the Joint Committee on Taxation, General Explanation of the Revenue Provisions of the Tax Equity and Fiscal Responsibility Act of 1982, JCS-38-82, at 35–37 (1983). Lest the reader consider this an esoteric point, note that the revenue increase from this provision was estimated at US$14 billion over the period 1983–87.

    “[T]he invested capital represents the ability to generate future earnings, and, as an asset with a limited life ages, its value will decline by an amount representing a netting of (a) the loss of the portion of the investment that generated last year’s earnings and (b) the increase in value of the remaining investment (i.e., of the future years’ earnings that are now nearer on the time horizon).” David S. Davenport, Depreciation Methods and the Importance of Expectations: Implications for Human Capital 54 Tax Notes 1399, 1400 (1992).

    See, e.g., Charles R. Hulten & Frank C. Wykoff, The Measurement of Economic Depreciation, in Depreciation, Inflation, and the Taxation of Income from Capital 81–125 (Charles R. Hulten ed. 1981).

    It should be remembered that an important goal of financial accounting is to let the owners know what their income actually is. However, to protect potential investors and creditors in a business, most financial accounting standards have rules built into them to ensure that income estimates are under- rather than overstated. See Financial Accounting Standards Board, Statements of Financial Accounting Concepts 60–62 (1994).

    I am indebted to Peter Goss for pointing this out to me.

    For example, in the United States a declining-balance depreciation by a factor of 2 for an asset with a 10-year useful life requires a switch to straight-line at the fifth year. In this way, the amount of cost left to be depreciated (41.2 percent) is deducted in equal portions (6.86 percent) during the final, straight-line period. See USA IRC § 168(b)(1).

    Because such a system of open-ended accounts does not depend on a fixed date at which the asset’s useful life ends, it is more commonly used to determine allowances not for single assets, but for all similar assets. This allows asset accounting on the basis of “pools,” an issue that is discussed at greater length in sec. G infra.

    See Hulten & Wykoff, supra note 122.

    See id. at 94.

    FRA CGI art. 39-1-2°; Précis, supra note 65, ¶ 1083.

    See id.; FRA CGI Ann. II, art. 24.

    FRA CGI art. 39A; FRA CGI Ann. II, art. 22.

    FRA CGI Ann. II, art. 24-2.

    Although reasonable proof would have to be provided. See Précis, supra note 65, ¶ 1083. Special deductions can also be taken for property not normally depreciable. See supra note 74.

    See Précis, supra note 65, ¶ 1083.

    DEU EStG § 7.

    The tables, with useful lives and rates, are found in Afa-Tabellen, vom Aug. 15, 1957, in der Fassung der ersten bis dreizehnten Erganzung.

    DEU EStG § 7(4).

    Id. § 7(2).

    Id. § 7(1).

    Id.

    JPN IT art. 31; Ministry of Finance Ordinance No. 50 (1951).

    JPN IT Reg. 21-(2) II, Rule 7-(2).

    JPN IT Reg. 21-3.

    See discussion infra at sec. III(E) regarding transfer of property. However, as a matter of accounting conformity, in Germany estimates of scrap value can be included in determining depreciation for depreciable property (e.g., a ship) that normally has a substantial scrap value at the end of its useful life. See International Bureau of Fiscal Documentation, Taxation of Companies in Europe, German Federal Republic 53 (1995).

    See supra note 82.

    See AUS ITAA § 55.

    Id. §§ 55, 56(1); but see id. § 56(1A). There are special rules for certain other properties, such as certain motor vehicles, works of art, and Australian trading ships.

    ld. § 54(A).

    Id. §§ 124S, 124M.

    Id. sixth sched.

    Id. The relatively slow rate of 10 percent is intended to prevent taxpayers from arguing that property is not listed in one of the other classes and therefore falls into the catchall.

    Id. § 44(2).

    See KAZ TC art. 23(1).

    Id. art. 20(3)(3).

    Id.

    USA IRC § 168(c)(1), (e)(1).

    Id. § 168(b).

    See USA Treas. Reg. § 1.167(a)-3.

    USA IRC §§ 611 (a), 613(a). There are seven different groups of minerals with different allowances. Id. § 613(b).

    The unit-of-production method has also sometimes been used for depreciable assets other than minerals.

    DEU EStG § 7(6).

    FRA CGI arts. 39 ter, 39 ter B.

    JPN Reg. 21-3.

    The taxpayer is allowed to use either a single fixed period, or the unit-of-production method, although a rate is not prescribed. IDN art. 11(X), (XII), (XIII).

    See GBR CAA § 98(5).

    AUS ITAA §§ 122DG, 124ADG.

    See LSO ITA § 43.

    See supra note 159.

    See KAZ TC art. 23(1).

    See FRA CGI art. 38(2); DEU EStG § 6; JPN IT §§ 22, 31(2). The French law, which has a special provision for reduced taxation of long-term capital gains, specifically includes gain up to the amount of depreciation taken as fully taxable short-term gains. FRA CGI art. 39 duodecies (b).

    See, e.g., USA IRC §§ 168(i), 197(f)(1), 1245(a)(1), (a)(3). This also ensures that “recapture” of depreciation is reflected as a short-term capital gain. Such recapture of depreciation is referred to in some countries as a balancing charge.

    For a discussion of pooling, see infra sec. III(G).

    See I.R.C. v. Wood Bros. (Birkenhead) Ltd. [1959] A.C. 487; but see GBR CAA §§ 4(2), 60(2), 79.

    AUS ITAA § 59(1)–(2), (2A)–(2E). The net effect of rollover is the same as generally found in pooling. See infra sec. III(G).

    KAZ TC art. 20(6), (7). LSO ITA §§ 41(4), (8), (9), (11), 59.

    KAZ TC art. 20(6), (7). LSO ITA §§ 41(4), (8), (9), (11), 59.

    See Précis, supra note 65, ¶ 1100.

    International Bureau of Fiscal Documentation, Taxation of Companies: Japan 94 (1992).

    DEU EStDV §§ 9a–11d; DEU EStR §§ 42–59c.

    GBR CAA § 159. Kazakhstan, which uses a pooling system, also allows a full deduction for the entire tax year in which the property is “used.” KAZ TC art. 20(1), (4), (6). Correspondingly, the full value of sales proceeds from retired property is subtracted from the pool when property is disposed of, thereby denying depreciation for the year of retirement. (Sweden provides another example of allowing full depreciation in year 1.—L.M.)

    AUS ITAA § 56(1A)–(1C); LSO ITA §§ 41(3), 43. However, a half-year convention similar to that of the United States applies when pooling is used. LSO ITA § 41(8).

    USA IRC § 168(d)(1), (d)(4)(A).

    A number of jurisdictions permit or require pooling for different types of assets, including Australia, Canada, Denmark, Finland, Norway, Sweden, and the United Kingdom. See International Bureau of Fiscal Documentation, The Taxation of Companies in Europe (loose-leaf). This discussion will focus primarily on the rules of Kazakhstan and Lesotho, which have recently adopted pooling systems.

    See, e.g., KAZ TC arts. 20(4), (6)(2); LSO ITA § 41(5), (8).

    KAZ TC art. 20(6); LSO ITA § 41(8).

    KAZ TC art. 20(7); LSO ITA § 41(9).

    KAZ TC art. 20(6)(1); LSO ITA § 41(7).

    See, e.g., KAZ TC art. 20(8); LSO ITA § 41(10).

    Some tax systems allow a rollover of capital gains reinvested in similar assets or simply other business assets, outside of the context of a pooling system.

    For example, assume that the taxpayer purchases two assets, one large and one small. For tax purposes, the taxpayer keeps track of both assets in a 15 percent declining-balance pool. The taxpayer also keeps separate track of the depreciation of each asset for financial accounting purposes. The taxpayer has estimated that a 15 percent declining balance approximates the actual decline in value of the asset.

    Large AssetSmall AssetPooling
    Year 19,000,0001,000,00010,000,000
    Year 27,650,000850,0008,500,000
    Year 36,502,500722,5007,225,000
    Year 45,527,125614,1256,141,250
    Year 54,689,056522,0065,220,062
    Year 63,993,347443,7054,437,052

    Year 6, sell small asset for $1,000,000

    Amount realized: $1,000,000

    Basis: $443,705

    Gain: $556,295

    Under a separate asset accounting system, the $556,295 would be taken into income, and no further deductions would be allowed for the $443,705 left to depreciate. In other words, the taxpayer would lose both the tax due on $556,295 and the present value (in year 6) of $433,705 in declining balance deductions. Under pooling, this would be subtracted from the pool; that is, the taxpayer would lose the present value (in year 6) of $556,295 plus $443,705 in declining-balance deductions.

    Because the present values of the $443,705 are identical, the only question is which is more beneficial to the taxpayer, paying tax currently on $556,295 or losing the present value of decliningbalance deductions of $556,295? Current taxation on $556,295 will be greater than the loss of declining-balance deductions whose sum has a nominal value equal to the same number.

    See, e.g., LSO ITA § 41(5), sixth sched.; KAZ TC art. 20.

    See KAZ TC art. 20.

    See, e.g., Accounting Standard D40, reprinted in Financial Accounting Standards Board, Current Text, Accounting Standards 12607 (1994) (unit for depreciation may be an asset or a group of assets); Donald E. Kieso & Jerry J. Weygandt, Intermediate Accounting 528–29 (3rd ed. 1980); Frank Minter, et al., Handbook of Accounting and Auditing C4-11 (1996).

    Note: The author is grateful for comments from Reuven Avi-Yonah, Michael McIntyre, and Victor Thuronyi. The introductory quote is from the article by Mike Graetz cited in note 8 infra.

    The usual starting point is Richard Musgrave, United States Taxation of Foreign Investment Income (1969); among more recent works see, for example, Assaf Razin & Joel Slemrod eds., Taxation in the Global Economy (1990) and Organization for Economic Cooperation and Development (OECD), Taxing Profits in a Global Economy (1991). The OECD Committee on Fiscal Affairs, Working Party No. 2 on Tax Policy and Statistics is currently conducting a project on the policy of international taxation.

    A good deal has been written in recent years on the need for change in the international tax system, for example, Richard Vann, A Model Tax Treaty for the Asian-Pacific Region, 45 Bulletin for International Fiscal Documentation 99, 151 (1991); Sol Picciotto, International Business Taxation (1992); Vito Tanzi, Taxation in an Integrating World (1995).

    See vol. 1 at 31-33 for a general discussion of the relevance of treaties to tax law.

    For a discussion of the international issues for the value-added tax, see vol. 1, at 170-73, 196, 207-08 and 215-16; for excises, see vol. 1, at 248-49; for wealth taxes, see vol. 1, at 310-11 and 314-15; and for social security taxes, see vol. 1, at 384-91.

    See infra ch. 23.

    1155 UNTS 331 (1980), reprinted in 8 International Legal Materials 679 (1969). Although the convention has not been adopted universally, it is regarded as largely declaratory of customary international law, and so its principles are for the most part applicable to treaties entered into by countries that are not parties to it. See Ian Brownlie, Principles of Public International Law 604 (1990).

    Because tax treaties are for the most part bilateral, it is difficult to keep track of the number of treaties actually in force; nowadays, research on tax treaties is greatly facilitated by two CDROM collections, which are regularly updated: International Bureau of Fiscal Documentation, Tax Treaties Database; and Tax Analysts, Worldwide Tax Treaties. The tax treaties cited in this chapter can be found on these CDs; therefore, only summary citations are given for these treaties below.

    The major League of Nations documents are collected in Joint Committee on Internal Revenue Taxation, 4 Legislative History of United States Tax Conventions, Model Tax Conventions (1962). See also Michael Graetz & Michael O’Hear, The “Original Intent” of U.S. International Taxation, 46 Duke L. J. 1021 (1997).

    The current version dates from 1992 and is in loose-leaf format (updated 1994, 1995, and 1997); the earlier versions were the Draft Double Taxation Convention on Income and Capital (1963) and Model Double Taxation Convention on Income and Capital (1977).

    United Nations Model Double Taxation Convention Between Developed and Developing Countries (1980) (ST/ESA/102), reprinted in Klaus Vogel, Klaus Vogel on Double Taxation Conventions (1991). For documentation of the influence of the UN Model on treaties, see Willem Wijnen & Marco Magenta, The UN Model in Practice, 51 Bull. Int’l Fiscal Doc. 574 (1997).

    Capital taxes as defined in art. 2 of the OECD Model mainly encompass annual wealth taxes, but do not include estate and gift taxes and other wealth transfer taxes for which there is a much smaller network of special bilateral tax treaties based around the OECD 1983 Model Double Tax Convention on Estates and Gifts. The reference in vol. 1, p. 315, to the lack of treaties on annual wealth taxes is to stand-alone treaties on wealth; many countries include the capital (wealth) article from the OECD Model treaty in their bilateral tax treaties.

    The model used by the United States has been published: Model Income Tax Convention of September 20, 1996, reprinted in Charles Gustafson et al., Taxation of International Transactions (1997).

    The OECD and UN Models leave the contents of the preamble to be dealt with in accordance with the constitutional procedure of the negotiating states. The U.S. Model, supra note 12, uses this common formulation.

    This attitude was most noticeable among Latin American countries, while by contrast many Asian countries have extensive tax treaty networks; nowadays, Latin American countries, including Chile, are embarking on active treaty negotiation programs. See Richard Vann, Tax Treaty Policy of Dynamic Non-Member Economies, in Tax Treaties: Linkages between OECD Member Countries and Dynamic Non-Member Economies (Vann ed., 1996). To the extent that countries did encourage foreign investment, tax treaties were necessary for tax sparing in relation to tax incentives; see infra ch. 23. The greater openness in the past of some Asian countries to foreign investment may explain the previous difference in treaty policy between Asia and Latin America.

    Tax relations among the transition countries used to be handled by the COMECON treaties (involving Bulgaria, Czechoslovakia, East Germany, Hungary, Mongolia, Poland, Romania, and the Soviet Union): Council for Mutual Economic Assistance Agreement on the Avoidance of Double Taxation on the Income and Property of Bodies Corporate (1979), and Agreement on the Avoidance of Double Taxation on Personal Income and Property (1979). Both of these tax treaties adhere even more strongly to the residence principle than the OECD Model.

    AUS International Tax Agreements Act § 4(2); GBR ICTA § 788; compare the more equivocal treatment in USA IRC §§ 894(a), 7852(d)(1); Paul McDaniel & Hugh Ault, Introduction to United States International Taxation 174-75 (1989); GEO TC § 4(8); LVA TF § 7; KAZ TC § 1(3).

    FRA CGI §§ 165 bis, 209 I.

    This follows from AUS International Tax Agreements Act s 4(2) and the peculiarly Australian tax treaty article on source of income, for example, Australia-Vietnam art. 22 in sched. 38 to that act.

    Even if a country intends to develop an extensive network, in many cases, it will take a significant amount of time to do so (perhaps decades). By following the pattern of tax treaties, a country can quickly achieve a tax regime that mimics what would obtain under a future tax treaty network.

    The COMECON treaties, supra note 15, did significantly depart from the OECD and UN Models without creating problems as they operated within a closed trading system; such an approach is no longer viable for transition countries. The Andean Model, which adopts exclusive source taxation (in line with the territorial tax systems in effect at the time in the signatory countries), has never received acceptance outside the Latin American countries that sponsored it; Commission of the Cartagena Agreement, Decision No. 40 Annex II (1971) reproduced in 28, No. 8 Bulletin for International Fiscal Documentation Supplement D8 (1974).

    Residence is of less significance for countries with a territorial system, but as discussed below, few countries have such a system anymore.

    The United States taxes residents—defined under USA IRC § 7701(b)—as well as citizens, but citizenship is really an aspect of residence as that term is used in this chapter with the sense of some personal connection to a country. The U.S. jurisdictional rules are stated in the negative rather than in the positive; that is, it is initially provided that all individuals and corporations are taxable on all their income, USA IRC §§ 1, 11 (a), and then an exception is noted, USA IRC §§ 2(d), 11(d), 871, 877, and 882, which limits the tax on foreign corporations and nonresident aliens effectively to domestic income.

    The Commentary, para. 5 to art. 15 of the OECD Model indicates the way in which the 183-day test is usually counted, although, in the case of the Model, for another purpose. A rule that counted only full days of presence could be avoided by an individual’s crossing the border during a sufficient number of days, which might be feasible for an individual living or working close to the country’s border. For other possible exceptions and details, see USA IRC § 7701 (b).

    It is, of course, possible to devise exceptions to cover this sort of case, but this tends to result in a more complex rule (e.g., USA IRC § 7701 (b), and some unfairness will persist no matter how many exceptions and qualifications are devised.

    See, e.g., U.K. Tax Guide 1603-13 (Tiley ed., 1995).

    OECD Model art. 4(2). This test applies for the purposes of the treaty only and so does not relate to matters not directly covered by tax treaties, such as personal tax allowances; some countries carry the tax treaty tiebreaker rules into domestic tax law more generally, especially in relation to companies, for example, CAN ITA § 250(5); GBR Finance Act 1994 § 249.

    Examples are particularly common in Europe, as the following tax treaties show: Austria-Italy art. 15 (1981), Belgium-France art. 11(2)(c) (1974), Germany-Switzerland art. 15 and protocol (1971), Nordic Convention protocol art. VII (1989). Sometimes, special agreements dealing only with frontier workers are negotiated, such as France-Spain (1961).

    Some countries, for example, the United States, use this test exclusively in determining the basic jurisdiction to tax.

    See DEU AO § 11 (“Sitz” (seat)).

    OECD Model art. 4(3); this test seems to be closer to the place of executive management than the central-management-and-control test of Anglo-Saxon countries. The United States will accept only the place of incorporation as a tiebreaker for corporations (since it uses this test under domestic law; see supra note 28), and if the other country is not prepared to agree with this test, dual-resident companies are excluded from the benefits of the treaty; for example, Australia-United States arts. 3(1)(g), 4(1).

    AUS ITAA §§ 6F, 80G(6)(ba), 160ZP(7)(ba), and GBR ICTA § 404; see also note 26 supra for more general domestic law provisions dealing with dual residents.

    Related problems of double-dipping and treaty-shopping are dealt with infra, sec. VII(G)(5), (6).

    Such as limited-liability companies (LLCs) of various states in the United States and the Anstalt and Stiftung of Germanic law.

    E.g., GEO TC § 29(8).

    See Asif Qureshi, The Public International Law of Taxation 22-125 (1994), which deals with the unlimited and limited views.

    The United States is usually quoted as the exception, USA IRC §§ 861-865 and regulations thereunder; see also FRA CGI § 164B; JPN Corp TL § 138.

    However, even with such a body of practice, uncodified source rules can lead to substantial controversy. For example, a number of judicial decisions in Hong Kong Special Administrative Region (SAR) in recent years have considered the source of income.

    In transition countries whose domestic tax law is very brief, the inclusion of a detailed list of source rules may not be appropriate. These countries can include the detailed rules in regulations or instructions as long as the availability of the rules is made known to nonresident investors. As transition countries develop more detailed statutes, source rules can be included there.

    E.g., Canada-Germany art. 23(3) (1986); United Kingdom-Uzbekistan art. 22(3) (1993); see also supra note 18.

    For example, one country may have a source rule for services based on the place where the services are performed, while another may base source on the place where the services are utilized or paid for; if services are performed in the first state and utilized in the second, double taxation on a source basis will arise.

    In so-called triangular cases, where more than two countries are involved, the different bilateral treaties involved may produce differing source outcomes; in these kinds of cases, the other income article can often provide the solution if it follows the OECD Model by providing exclusive taxation for the country of residence, but not if the UN Model is used because it allows both residence and source countries to tax other income. See Vogel, supra note 10, at 916-17.

    It is important to notice two different ways of dealing with such services. The position stated in the text uses a rule based on the residence or place of business of the payer to source the income. UN Model art. 5(3)(b) by contrast includes as an addition to the permanent-establishment definition the furnishing of services, including consultancy services, in the country through employees or other personnel engaged for such purpose for a period or periods aggregating more than 6 months in any 12-month period. This method still requires the performance of the services in the country, whereas the rule in the text does not.

    In fact the OECD Model refers to the place of effective management of the enterprise, but this will usually correspond to the place of residence. The OECD Commentary on art. 8 in para. 2 contemplates the use of residence directly in the treaty article, and many treaties in practice follow this suggestion.

    Cf. ch. 14, supra, sec. V. The OECD is considering dropping the relevant article from its Model.

    “Payer” in this context does not mean the person who actually hands over the money (which will usually be done by the debtor’s bank), but the debtor or obligor; in tax treaties, the OECD Commentary on art. 11 para. 5 also notes that “paid” in this context has the broad meaning of the fulfillment of the obligation to put funds at the disposal of the creditor in the manner required by contract or custom.

    Where the debtor is a financial intermediary, it will in turn have loaned the funds to another, but it is not necessary for this purpose to track down the ultimate user of the funds; the branch of the financier that has borrowed the funds will be the determinant of the source of the interest payment. The fact that many interest payments involve financial intermediation creates many problems in the structuring of international tax rules as discussed below.

    Australia is the main example; see Australia-Vietnam art. 11(5); the United States in some of its treaties has also taken this approach.

    USA IRC § 861(a)(4).

    See supra ch. 19.

    See generally OECD, Taxation of New Financial Instruments (1994).

    E.g., AUS ITAA § 6(1) (definition of royalty); JPN Corp TL § 143(7).

    One difference is that the rental payment under a finance lease is equivalent to principal and interest on a loan, and so taxation of the full rental payment is more extensive than taxation of interest. To deal with this problem, some countries restrict the tax on a finance lease rental payment to the component equivalent to interest, for example, AUS ITAA § 128AC. This will also be the result when a financial lease is treated as a loan for tax purposes. E.g., GEO TC § 78.

    USA IRC § 865(d)(1)(B); alternatively, royalties can be defined to include payments for alienation as well as use, as in JPN Corp TL § 138(7).

    E.g., for Malaysia, see Ismail, Experience of Malaysia, in Vann, ed., supra note 14.

    All of Brazil’s tax treaties, except a very early treaty with Japan, provide for assimilation of technical fees to royalties in protocols to the treaties; a number of treaties and protocols recently negotiated by India, Malaysia, and some African countries have separate articles on technical fees; see Vann, supra note 14.

    See generally supra ch. 16.

    Although only in the title to art. 13, and not in the text of the article itself, which refers simply to gains; the 1996 U.S. Model, supra note 12, uses “Gains” as the title also.

    USA IRC § 897 for the first and AUS ITAA § 160T and CAN ITA § 115(1)(b) for the second and third cases.

    The provisions in note 58 refer to shares in resident companies and so can be easily overcome through the use of a nonresident company to hold the relevant asset without a lengthy tier of companies. Canada has recently extended its rules to nonresident companies in certain cases; CAN ITA § 115(1)(b)(v)(D). The UN Model refers to shares in a company whose assets consist “directly or indirectly” principally of immovable property and so is apt to cover such cases if there is a suitable provision in domestic law. In practice, it is rare for tax treaties to cover indirect disposals.

    E.g., USA IRC § 861(a)(3).

    See supra ch. 14, sec. III(C)

    See Vann, Some Lessons from Hussey and Lubick, 7 Tax Notes Int’l 268 (1993). See abo supra ch. 14, sec. III(C).

    Australia has some provisions in a treaty with Indonesia over exploitation of the Timor Gap and its recent treaty with New Zealand. For all other tax treaties, however, the fringe benefits tax is simply not covered, because treaties are limited to income and capital taxes.

    The UN Model uses “six months within any 12-month period” in the permanent establishment article and “183 days in the fiscal year concerned” in the independent personal services article. It seems preferable to use uniform terminology in both cases. For issues surrounding the counting of days under time-bound tests in a different context, see supra sec. II(A) concerning the residence of individuals.

    See supra ch. 14.

    OECD, Trends in International Taxation: Taxation Issues Relating to International Hiring-Out of Labor (1985) and see the Commentary para. 8 to OECD Model art. 15. Some tax treaties incorporate the tests developed by the OECD, but most countries are content to rely on the Commentary as bringing about the application of the tests. The object of the tests is to determine whether the business that contracts for the services of the company owned by the individual doing the work controls and provides for that person in a similar way as for an actual employee. Cf. supra ch. 14, note 60.

    For extended treatment of the domestic law and treaty issues arising from the income of entertainers and athletes, see Sandier, The Taxation of International Entertainers and Athletes (1995).

    Most of the problems under tax treaties in this area arise from the use of the permanent establishment concept.

    E.g., DEU EStG § 49(1)(3), (4) (services performed in Germany, utilized in Germany, or paid for from public funds); COL TC § 24(6) (compensation for personal services paid by the state); id. § 24(8) (income from the rendering of technical services); Price Waterhouse, Individual Taxes: A Worldwide Summary 43 (1997) (for Brazil, source is determined according to place where payer is located); BRA RIR §§ 2, 743, 785; ECU RTI § 8(2) (income derived from residents).

    See supra ch. 14, sec. V.

    Words were added to para. 1 of art. 24 of the OECD Model in 1992 to make this point clear, but the addition was regarded as reflecting existing practice, Commentary para. 3 to art. 24; the second sentence of para. 3 of art. 24 also makes this point clear, Commentary para. 22.

    An exception would be where the person’s home country asserts taxing jurisdiction on a citizenship basis, as does the United States.

    In recent years, the top tax rate has come down in a number of developing and transition countries; however, in transition countries, the combined income and social security taxes can still be very high.

    See OECD, The Tax Treatment of Employees’ Contributions to Foreign Pension Schemes, in Issues in International Taxation No. 4, Model Tax Convention: Four Related Studies (1992) for a discussion of the problems under domestic law and proposals for additional provisions in tax treaties that are now reflected in the Commentary on art. 18 of the OECD Model.

    This will not always be the case, as often expatriate employees will not be liable to pay social security tax at home on income earned abroad. See vol. 1, ch. 11, at 386-91; USA IRC § 3121(b).

    See vol. 1, at 391.

    The territorial approach used to be common in Latin America, but the major jurisdictions there have moved to a worldwide system. It is still used in some Latin American countries, Hong Kong SAR, and South Africa.

    AUS ITAA § 23AG; FRA CGI § 197C.

    AUS ITAA § 23AH in relation to branch profits.

    Canada and Germany are two countries that confer exemption only in relation to countries with which they have a tax treaty.

    See USA IRC §§ 164(a), 901; GBR ICTA § 805.

    This approach is most clear in art. 23 A para. 2 of the OECD Model, but also applies to art. 23B. Item-by-item limits can be overcome by using wholly owned subsidiary “mixer” companies in which all foreign income ultimately owned by a resident taxpayer is channeled through an offshore company so as to average differing foreign tax rates on various kinds of foreign income. To counter this kind of tax planning, elaborate provisions for looking through the mixer company to the underlying income are necessary. It does not seem worthwhile for developing and transition countries to adopt such measures. Alternatively, as suggested in the following text, a country in the early stages of developing its international tax rules may not adopt the underlying or indirect foreign tax credit on which this form of planning depends.

    Even the United States, which is generally regarded as the strongest proponent of the credit system, effectively exempts a significant part of foreign employment income of citizens living abroad. See USA IRC §911 (a).

    In Switzerland, in the absence of a treaty, double taxation is relieved by the deduction method (i.e., as a cost of earning income), not by credit or exemption, and this occurs even in the case of a few treaties with respect to income where tax is permitted or limited at source. See Xavier Oberson & Howard Hull, Switzerland in International Taxation 128, 130 (1996). Several transition countries lacked relief mechanisms prior to the reform of their tax laws in the transition.

    Even when the company invests in bonds denominated in major currencies, such as the U.S. dollar, there will often he no interest withholding tax in the country of issue because an interest withholding tax exemption is applicable (as to which, see infra sec. VII (C)).

    E.g., GEO TC § 66.

    In a number of industrial countries, for example, USA IRC § 877, the change of residence rules take the form of subjecting the person to tax on gains on the disposal of assets for a period of time after the person ceases to be a resident. If the developing or transition country exempts foreign income of expatriates (other than employment income) from tax for a certain period, the problem of conflicting tax jurisdiction is likely to be avoided.

    USA IRC § 871(d).

    Para. 3 of Commentary on art. 14.

    Where, as is common, personnel of a parent company are seconded on a rotating basis to a subsidiary in a developing or transition country, it is possible to apply the hiring out of labor analysis discussed supra sec. V(G)(3), or to find that there is a permanent establishment of the parent company on the basis of the use of the subsidiary’s facilities, which will mean that the business profits article of tax treaties will apply to the technical fees received by the parent company and the employment article to the employees so that both are taxed in the source country. Alternatively, tax treaties may provide for the taxation of technical fees through extension of the royalties article or addition of a special article on the topic; see supra note 55 and text.

    United Kingdom-Russia (1994 Exchange of Notes); the features of Russian law causing concern have since been modified but similar problems remain with other transition countries.

    Para. 15 of the Commentary on art. 11.

    Provisions that reach this kind of result, although by various means, are AUS ITAA § 128F; CAN ITA § 212(1)(b)(vii); GBR ICTA § 349(3)(c); USA IRC § 871(h)(2)(A).

    For example, most of Australia’s tax treaties with European countries have such protocols.

    As long as inflation is significant and property rights have not been clarified in transition countries, the introduction of a capital gains tax is probably not a high priority generally, let alone in the case of nonresidents.

    For example, Australia has general power in AUS ITAA § 255 to require a person owing money to a nonresident to pay tax owing by the nonresident on receipt of a notice from the tax administration; this procedure can be utilized in the case of substantial capital gains that come to the notice of the tax administration (which may put a watch on land registers for that purpose).

    See generally supra ch. 15.

    Commentary art. 14, para. 3 states that taxation under art. 14 should be levied on a similar basis to the net taxation of business profits under art. 7, although there is nothing in the wording of the article to suggest the limitation; the OECD is currently considering whether art. 14 should be dropped from the Model, which would have the result of net taxation under art. 7 applying in such cases.

    For example, Australia, the United Kingdom, and the United States.

    For comprehensive treatment of the imputation system in the international setting, see Peter Harris, Corporate/Shareholder Income Taxation and Allocating Taxing Rights Between Countries (1996). See also infra ch. 19.

    AUS ITAA § 128B(3)(ga); countries with U.K.-style imputation systems simply do not levy withholding taxes on dividends, whether paid to residents or nonresidents, though they may levy equalization taxes, on which see below.

    For example, France and United Kingdom.

    Ward Hussey & Donald Lubick, Basic World Tax Code and Commentary § 164 (1996).

    Some countries seek to overcome the tax credit problem in the residence country of the investor by in effect converting part of the corporate tax into a creditable withholding tax, for example, New Zealand under its domestic law and the United Kingdom in its typical treaties extending imputation benefits to nonresidents.

    OECD, Taxing Profits in a Global Economy 195 (1991); the United Kingdom in its 1997 budget effectively abolished its imputation system in the international setting; see Edge, The Last Piece of the Jigsaw, The Tax Journal 2 (Aug. 4, 1997); Harris, supra note 100.

    The United Kingdom sought to remove this disincentive from its imputation system with the foreign income dividend scheme introduced in the early 1990s, but this scheme was withdrawn and the whole issue opened up for review in its 1997 budget; see notes 101, 105.

    AUS ITAA § 128B(3)(a), referring to § 23(jb).

    This tax is designed to ensure that tax credits given under an imputation system to shareholders are in fact supported by tax paid at the corporate level; this can be achieved by levying tax on the company every time it makes a distribution, as in the United Kingdom, or under an accounting mechanism that matches dividends paid with corporate tax and applies the equalization tax only when there is no matching corporate tax; for example, Australia, France, New Zealand, and Singapore.

    However, sometimes the tax is purposely structured in the opposite manner, in order to make it a creditable dividend withholding tax in the hands of the shareholders.

    GBR ICTA § 14, pt. VI, chs. IV, V, VA. The 1997 U.K. Budget radically altered the U.K. imputation system, but these features initially remained intact; see supra note 105. A subsequent Inland Revenue consultative document of Nov. 25, 1997, proposed abolition of the advance corporation tax, which has been a critical part of the system, and gave rise to the issues considered in the text.

    The term “subsidiary” will be used in what follows although it is often used only to refer to the case of control of, rather than influence over, a company; as noted above, direct investment is usually defined in terms of influence rather than control.

    OECD, Taxing Profits in a Global Economy (1991); CEC, Report of the Committee of Independent Experts on Company Taxation (1992). The initial enthusiasm for this analysis, which gave rise to a number of initiatives in the EU, seems to have cooled.

    See infra ch. 23 for a discussion of such incentives.

    Council Directive 90/435/EEC art. 5.

    COM (90) 571, OJ C53, 26 (1991).

    From the point of view of the residence country, it is imperative to tax interest and royalty income where source taxation has been reduced or eliminated by tax treaty or trade bloc arrangements and tax treaties and trade blocs assume such a regime; the arguments that can be made for operating an exemption system in relation to dividends on direct investment do not apply to interest and royalties because the underlying assumption is that dividends are not deductible in the source country in determining the taxable profit of the subsidiary.

    See Victoria Summers & Emil Sunley, Analysis of Value Added Taxes in Russia and OtherCountries of the Former Soviet Union, 10 Tax Notes Int’l 2049 (June 19, 1995).

    See arts. 10(5) and 23(3) of the OECD Model.

    See infra ch. 21.

    See vol. 1, at 90 n. 55.

    See infra ch. 19, sec. VII.

    U.S. regulations specifically deny a foreign tax credit in this case. See Treas. Reg § 1.901-2(b)(4)(ii).

    These terms are explained in vol. 1, at 44-46.

    OECD, Attribution of Income to Permanent Establishments (1994); OECD, Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (1995, updated 1996, 1997). The problem that transfer pricing currently represents for developing and transition countries is one of administrative capacity. The development of advance pricing arrangements with the encouragement of the OECD (see infra note 159) may simplify the administrative task of transition and developing countries in the future by supplying readily applicable formulas for various economic sectors.

    Supra note 124, paras. 1.36-1.37.

    Id. at para. 1.37.

    See vol. 1, at 44-53.

    See OECD, Taxation of New Financial Instruments (1994) and the resulting change to the Commentary on art. 11 of the OECD Model in 1995 para. 21.1; David Ward, Abuse of Tax Treaties, in Essays on International Taxation in Honor of Sidney Roberts 397 (Herbert Alpert & Kees van Raad eds. 1993).

    See generally International Fiscal Association, International Aspects of Thin Capitalization, 81b Cahiers de droit fiscal international (1996).

    See supra text accompanying notes 92-93.

    AUS ITAA § 159GZA (definition of foreign equity product); USA IRC § 163(j)(2)(A)(ii).

    USA IRC § 163(j)(2)(a)(I), (B).

    Commentary on art. 10, para. 25 and Commentary on art. 11, para. 19. In the case of rules taking the form of the draft language set out in the text, it would be unusual to recharacterize interest as dividends, since specific debt is not recharacterized under the rule.

    For a general discussion of domestic and international issues, see OECD, Taxation of New Financial Instruments (1994), International Fiscal Association, Tax Aspects of Derivative Financial Instruments 836, Cahiers de droit fiscal international (1995); and Australian Treasury and Australian Taxation Office, Taxation of Financial Arrangements: An Issues Paper (1996).

    See supra text accompanying notes 92-93, 130.

    Commentary on art. 11, para. 21.1.

    Commentary on art. 21, para. 7.

    E.g., FRA CGI § 238A.

    For example, sched. 25A to the Company Income Tax Return in Australia requires extensive reporting of information on international transactions, and a number of countries have special powers for collecting information from foreign persons; AUS ITAA § 264A; USA IRC § 982.

    See supra ch. 16, sec. VI(A)(4).

    See supra note 31; because of more general problems involving dual-residence companies, a number of countries are enacting provisions to allocate residence usually in accordance with tax treaty tiebreakers; supra note 30.

    See U.S. Model Income Tax Convention of Sept. 20, 1996, art. 22, Limitation of Benefits.

    The United Kingdom includes special rules in the interest and royalty articles; the beneficial owner rule in arts. 10-12 of the OECD Model also limits treaty-shopping.

    Commentary on art. ff 13, 15, 17, 19, 21.

    See supra note 128; Australia makes this relationship clear in International Tax Agreements Act 1953 s 4(2). See also GEO TC § 4(8), (9).

    The seminal comparative work on these regimes is Brian Arnold, The Taxation of Controlled Foreign Corporations: An International Comparison (1986); for a more recent summary of current practice, see OECD, Controlled Foreign Company Legislation (1996).

    See OECD, Taxation and Foreign Direct Investment: The Experiences of the Economies in Transition (1995), especially the discussion of Latvia in pt. II.

    See Terra & Wattel, European Tax Law ff 3.2.1, 3.2.3.1, 3.2.3.2 (1993).

    In the 1977 OECD Model and in the UN Model, the second paragraph is a definition of national; this now appears in the definition article of the 1992 OECD Model.

    This requirement may have implications for certain forms of presumptive taxation that imposes a tax even in the absence of net income. See vol. 1, ch. 12.

    Commentary on art. 24 ¶¶ 19-54.

    Even in the absence of a treaty, this tactic may not be effective if the resident country denies a credit for so-called soak-up taxes, as does the United States, for example. See Treas. Reg. § 1.901-2(c).

    This is implicitly recognized in the paragraph in the OECD Model allowing the residence country to apply exemption with progression to income, which it relieves from double taxation by exemption, arts. 23A(3), 23B(2). Exemption with progression takes the foreign income that has been exempted into account in determining the tax payable on domestic income. Usually, an average rate of tax is worked out on the assumption that all the foreign and domestic income of the resident is subject to tax, and this rate is then applied to the domestic income of the resident.

    This rule is not found in the tax laws of the country but in the rules of private international law (conflict of laws). Thus, in common law countries, it is simply part of the common law (see Government of India v. Taylor [1955] AC 491).

    OECD, Tax Information Exchange: A Survey of Member Countries (1994).

    Reproduced in Vann, supra note 14.

    OECD, Transfer Pricing Guidelines, supra note 124, ff 4.78-4.93.

    Council of Europe and OECD, Explanatory Report on the Convention on Mutual Administrative Assistance in Tax Matters (1989).

    OECD, Transfer Pricing Guidelines ff 4.124-4.166. In the medium term, advanced pricing agreements (APAs) developed by industrial countries may help to solve the difficulties for developing and transition countries in enforcing transfer pricing rules.

    For a discussion of these issues, see OECD, Transfer Pricing Guidelines paras. 4.167-4.171; the EU has implemented an arbitration procedure in transfer pricing cases, Convention of July 23, 1990, on the Elimination of Double Taxation in connection with the Adjustment of Profits of Associated Enterprises, 90/436/EEC, O.J. No. C304 of Dec. 21, 1976, 4.

    With the possible exception of a few countries with small populations and large resource bases exploited by foreign investors.

    Note: Victor Thuronyi (who also wrote sec. VII), Alvin Warren, David Brockway, and Melinda Milenkovich provided plentiful, and extraordinarily helpful, comments on earlier drafts. The research for this chapter was supported in part by the Fund for Tax and Fiscal Research, Harvard Law School.

    See supra Introduction, note 10.

    The corporate tax in the United States was first imposed in 1909, four years before the personal income tax was introduced. Historically, the tax was justified as equivalent to a license fee or benefit tax, imposed for the privileges flowing from the creation by the state of a separate person. Those benefits include perpetual life despite changes of investors, limited liability for investors, transferable interests with standardized (but variable) rights for ease of transfer, and the ability to sue (and be sued) in the corporation’s own name. That justification has generally been regarded as insufficient because there is little relationship between the value of the privilege and the size of corporate profits.

    Another view accepts the legal fiction—that a separate person has been created by the process of incorporation—and the imposition of the separate tax simply affirms this fiction in the tax context. This rationale too is regarded as unsatisfactory today because it conflicts with modern financial theory, which simply regards the enterprise as a group of investors acting collectively under one or more legal structures. The legal fiction of the separate legal person is simply inappropriate in a tax context.

    For example, two successive government reports in Australia—the Asprey Committee in 1972 and the Draft White Paper in 1985—suggested that the ideal treatment for income derived through entities was to approximate the conduit approach: “[the] ideal arrangement … would recognize for income tax purposes the shareholder’s interest in both the distributed and undistributed earnings of the company and would tax the combined amount at each shareholder’s marginal tax rate; the company would be taxed only as a withholding arrangement to collect personal tax on the income.” Australia, Reform of the Australian Tax System ¶ 17.9 (1985) [hereinafter Draft White Paper]. In contrast, the United States has always had a completely separate system and continues to do so despite a number of recommendations by the U.S. Treasury Department to the contrary. See, e.g., U.S. Dep’t of the Treasury, Blueprints for Basic Tax Reform (January 1977) [hereinafter Blueprints] (arguing for full integration between corporate and personal income taxation); Department of the Treasury, Tax Reform for Fairness, Simplicity, and Economic Growth 117-20 (November 1984) [hereinafter Treasury I] (arguing for partial integration); The President’s Tax Proposals to the Congress for Fairness, Growth, and Simplicity (1985) [hereinafter Treasury II]; Department of the Treasury, Integration of Individual and Corporate Tax Systems: Taxing Business Income Once 27-35 (1992) [hereinafter U.S. Treasury Report] (arguing for full integration).

    The theory that each business enterprise is the product of different contractual relationships among investors was first advanced in the English-speaking world by the economist Ronald Coase. See R.H. Coase, The Nature of the Firm, 4 Economica 386 (1937).

    The term “lease” is used in a broad sense that would include a rental agreement or a licensing agreement as well as finance leases and operating leases.

    For example, the typical partner or common stockholder has no right to receive either a fixed rate of partnership distributions or dividends, or a return from the partnership or company of his or her equity contribution. The common stockholder does, however, have other rights: he or she is entitled to what is left of the partnership or company property after other investors have been paid what they are legally entitled to. The partner or stockholder has some direct say in how the company is managed, thereby providing a mechanism for increasing the likelihood of higher rates of return. Limited partners do not participate in the day-to-day running of the partnership, but their liability, as with stockholders in companies, is limited to the amount of their investment. See Larry E. Ribstein, An Applied Theory of Limited Partnership, 37 Emory L.J. 835 (1988).

    Preferred stockholders are paid dividends before other types of equity investors, but those dividends are limited by a cap. See generally Richard A. Brealey & Stewart C. Meyers, Principles of Corporate Finance 303-05 (3d ed. 1988).

    As will be discussed at greater length infra, there may be no clear dividing line between “equity” and “debt.” See generally Franklin Allen, The Changing Nature of Debt and Equity: A Financial Perspective, in Are the Distinctions Between Debt and Equity Disappearing? at 12 (Richard W. Kopcke & Eric S. Rosengrew, eds. 1989), and Charles P. Normandin, The Changing Nature of Debt and Equity: A Legal Perspective, in id. at 49. However, statues, regulations, and courts have often tried. In the United States, the Court of Appeals in Gilbert v. Commissioner, 248 F.2d 399, 402 (2d Cir. 1957) defined debt as “an unqualified obligation to pay a sum certain at a reasonably close fixed maturity date along with a fixed percentage in interest payable regardless of the debtor’s income or the lack thereof.” See also David Plumb, The Federal Income Tax Significance of Corporate Debt: A Critical Analysis and a Proposal, 26 Tax L. Rev. 369, 404 (1971). In the United Kingdom, the Court of Appeal in Lomax v. Peter Dixon & Co., Ltd. [1943] 2 All ER 255, 259-62, noted that each case of whether a payment constitutes interest must be “decided on the facts,” and that the relevant factors in making such a determination would be the contract, the term of the loan, the stipulated rate of interest, and the nature of the capital risk. See also Butterworths U.K. Tax Guide 1990-91, at 338-90 (John Tiley 9th ed. 1990) (hereinafter Butterworths Guide]. The doctrines developed in case law go beyond “thin capitalization,” where equity investors also contribute debt capital.

    However, most substantial creditors may, through the terms and conditions of the loan agreement, exercise considerable control over certain aspects of management.

    The simple unsecured creditor is only one type of traditional debt investor. There aré also secured creditors, who typically have a better chance of getting paid than do unsecured creditors. A secured creditor may also experience increases or decreases in the value of his or her investment depending upon changes in the value of the creditor’s security interest. The change in value will be more acute for nonrecourse creditors. A lower debt-to-equity ratio means that there is a greater amount of funds in the business (from the equity capital) to serve as a “cushion” for payment of fixed obligations, which reduces the likelihood of default on the obligations. Other factors affecting the level of risk include the history of payment of the interest and the use of the advanced funds. See David V. Ceryak, Note: Using Risk Analysis to Classify junk Bonds as Equity for Federal Income Tax Purposes, 66 Ind. L.J. 273, 283-84 (1990).

    Rent compensates the lessor for any accruing capital loss plus the opportunity cost of the asset. See George V. Mundstock, Taxation of Business Rent, 11 Va. Tax. Rev. 683, 684-85 (1993); George V. Mundstock, The Mistaxation of Rent: Eliminating the Lease/Loan Distinction, 53 Tax Notes 353, 353-54 (1991).

    See Michael C. Jensen & William H. Meckling, Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure, 3 J. Fin. Econ. 305, 310-11 (1976).

    For example, in the United States, original issue discount is accrued over the lifetime of the debt and is compounded semiannually. See USA IRC § 1272(a). See generally David C. Garlock, A Practical Guide to the Original Issue Discount Regulations (1993). A similar regime exists in the United Kingdom. See GBR ICTA § 57, sched. 4; Butterworths Guide, supra note 8, at 397—405. Similar treatment is afforded in Australia; see AUS 1TAA Div. 16E. See also Graeme S. Cooper, Tax Accounting for Deductions, 5 Aust. Tax F. 23 (1988).

    The difference between pure interest income and gain or loss from interest rate changes is relatively easy to determine. However, unless the debt is an instrument publicly quoted on an exchange, changes in default risk are difficult to determine. See generally David J. Shakow, Taxation Without Realization: A Proposal for Accrual Taxation, 134 U. Pa. L Rev. 1111, 1164 (1986).

    A high-yield high-risk “bond,” such as a deeply discounted debt instrument, may more closely resemble traditional equity than a low-yield redeemable cumulative preference share. See generally Jeremy I. Bulow et al., Distinguishing Debt from Equity in the Junk Bond Era, in Debt, Taxes and Corporate Restructuring 135 (John B. Shoven & Joel Waldfogel, eds. 1990). In economic terms, these are all investments, and returns on investments, with different allocations of risk of gain or loss. While the economic realities of investments can be described with some accuracy, it is often difficult to put these realities into clear legal categories.

    See the discussion of these forms of investment, and the relationship to risk allocation, in Daniel N. Shaviro, Risk and Accrual: The Tax Treatment of Nonrecourse Debt, 44 Tax L. Rev. 401, 404,429-31 (1989), and Alvin C. Warren, Jr., Commentary: Financial Contract Innovation and Income Tax Policy, 107 Harv. L. Rev. 460, 483-89 (1993).

    Leif Mutén refers to it as “the floating borderline between capital gain and current yield, which is barely discernable … [in] sophisticated financial instruments.” Leif Mutén, International Experience of How Taxes Influence the Movement of Private Capital, 8 Tax Notes Int’l 743 (1992). However, with regard to fixed-interest debt instruments with a final redemption date, the variation is limited to downside risk over the life of the instrument. Equity, in the form of either securities or direct ownership, constitutes a residual claim to the assets themselves and may fluctuate freely in value; there is no inherent limit on fluctuations. Debt, however, constitutes a finite stream of payments already specified in nominal terms. Debt can decline to zero, but its value cannot exceed the undiscounted sum of nominal payments. With debt, while market value may deviate, the sum of deviations over time will be zero. See Theodore S. Sims, Long-Term Debt, the Term Structure of Interest and the Case for Accrual Taxation, 47 Tax L. Rev. 313, 358-59 (1992).

    See infra sec. V(B)(6); ch. 21.

    These arguments, as well as others, are summarized in U.S. Treasury Report, supra note 3, at 27-35.

    In the case of preferred stock, payment typically is not optional.

    See supra ch. 16.

    Of course, some of the value can be realized by other investors. An enterprise that retains earnings is likely to be more creditworthy, and the value of its bonds would therefore be likely to increase.

    Changes in the value of debt investments could also be taxed on an accrual basis. See Sims, supra note 17, at 336, 338, 356-57. However, valuation problems could be insurmountable, as they may be with equity interests.

    This would also include any special tax benefits provided the enterprise, such as the excess of tax depreciation over economic depreciation. See U.S. Treasury Report, supra note 3, at 82, and The American Law Institute, Federal Income Tax Project, Integration of the Individual and Corporate Income Taxes: Reporter’s Study of Corporate Tax Integration (Alvin C. Warren, Jr., Reporter: 1993) [hereinafter ALI Integration Report], at 129-32.

    See the discussion of “speculative” gains in Michael L. Schler, Taxing Corporate Income Once (Or Hopefully Not at All): A Practitioner’s Comparison of the Treasury and ALI Models, 47 Tax L. Rev. 509, 525 (1992).

    See Henry Simons, Personal Income Taxation 100 (1938).

    Such a system is outlined in David Slawson, Taxing as Ordinary Income the Appreciation of Publicly Held Stock, 76 Yale L.J. 623 (1967). However, there could be strategic selling of traded securities as a way of driving down the price on the valuation date. This could be countered by taking an average price over a limited time period. See also Note: Realizing Appreciation Without Sale: Accrual Taxation of Capital Gains on Marketable Securities, 34 Stan. L. Rev. 857, 871-76 (1982); Victor Thuronyi, The Taxation of Corporate Income—A Proposal for Reform, 2 Am. J. Tax Pol’y 109 (1983). Such proposals have also been made for debt interests. As noted above, in many instances it is difficult to determine whether a particular interest is “equity” or “debt”; it can also be difficult to divide instruments with characteristics of both into their equity and debt parts. See the general discussion of such instruments and how they might be taxed in Warren, supra note 16, at 474-82.

    The correction would have to include the time value of money. This could be done by adjusting the amount of tax due by imputing an interest rate during the time that the taxpayer held the asset. See Mary L. Fellows, A Comprehensive Attack on Tax Deferral, 88 Mich. L. Rev. 727, 728-31, 733 (1990). Cf. USA IRC §§ 1291-1297 (imputed interest rate to account for the benefit of tax deferral).

    The more volatile the value of the asset, the more frequently it must be assessed if overor undertaxation is to be avoided. Because risky assets do not reveal their “value path,” there are many possible paths between the starting and ending value and, for each possible path, there is a different continuous tax. Jeff Strnad, Periodicity and Accretion Taxation: Norms and Implications, 99 Yale L. J. 1817, 1822, 1865-79 (1990). See also Fellows, supra note 28, at 744.

    But see Joseph Bankman & Thomas Griffith; Is the Debate Between an Income Tax and a Consumption Tax a Debate About Risk? Does It Matter? 47 Tax L. Rev. 377 (1992), who argue that real value paths might be constructable using computers if the data are available.

    See Steven Klepper & David Nagin, The Role of Tax Practitioners in Tax Compliance, 22 Pol’y Sciences 167 (1989); G.A. Feffer et al., Proposals to Deter and Detect the Underground Cash Economy, in Income Tax Compliance: A Report of the ABA Section on Taxation, Invitational Conference on Income Tax Compliance (P. Sawicki, ed. 1983); Steven Klepper et al., Expert Intermediaries and Legal Compliance: The Case of Tax Preparers, 34 J.L. & Econ. 205 (1991).

    The Meade Committee in the United Kingdom defined a true profit tax base as "the real current profits of the corporation, whether these be distributed or undistributed. It involves the deduction from gross profits of net interest on debt, an allowance for true economic depreciation … a calculation of real accrued capital gains made by the company on its assets [plus inflation adjustment]." Institute for Fiscal Studies, The Structure and Reform of Direct Taxation 229 (1978) (Report of the Meade Committee) [hereinafter Meade Committee Report].

    David J. Shakow argues that all business assets should be subject to accrual taxation. David J. Shakow, Taxation Without Realization: A Proposal for Accrual Taxation, 134 U. Pa. L. Rev. 1111, 1119-23 (1986). See also Strnad, supra note 29, at 1903-04, and Fellows, supra note 28, at 741-42.

    A detailed discussion on rate relationships can be found in Alvin C. Warren, The Relation and Integration of Individual and Corporate Income Taxes, 94 Harv. L. Rev. 717 (1981). See also 4 Report of the Royal Commission on Taxation [Canada] 51-57 (1966).

    The conclusion that a separate company tax should serve as a withholding tax on the earnings of equity investors has recently been advanced in the Ruding Committee Report of the European Union (EU) and in the American Law Institute’s Federal Income Tax Project. Commission of the European Communities, Report of the Committee of Independent Experts on Company Taxation [Onno Ruding, Chairman] 31-32 (1992) [hereinafter Ruding Committee Report]; AL1 Integration Report, supra note 24. However, the U.S. Treasury recently advanced the theory that a final, separate company tax, without deductions for interest, could serve as a part of a schedular tax on income from capital. See generally U.S. Treasury Report, supra note 3; Nicholas Brady, Letter to Congress, in Department of the Treasury, Treasury Integration Recommendation 2 (1992) [hereinafter U.S. Treasury Recommendation].

    See George K. Yin, Corporate Tax Integration and the Search for the Pragmatic Ideal, 47 Tax L. Rev. 431, 431-33 (1992).

    See id.

    See infra sec. V(B)(1).

    See infra ch. 21. Guidelines as to which entities are subject to company tax are discussed infra sec. VII.

    For example, in the United States, where failure to achieve flow-through taxation means not only that losses do not flow through to equity holders, but also that business earnings are subject to a second level of taxation on distribution, there has been a particularly strong incentive for enterprises to organize so as to avoid such double taxation. See Francis J. Worth & Kenneth L. Harris, The Emerging Use of the Limited Liability Company, 70 Taxes 377 (1992).

    For example, the United States has always had a completely separate system and continues to have one despite a number of recommendations by the U.S. Treasury Department to the contrary. See, e.g., Blueprints, supra note 3 (arguing for full integration between corporate and personal income taxation); Treasury I, supra note 3, at 117-20 (arguing for partial integration); U.S. Treasury Report, supra note 3 (arguing for full integration). Although the Japanese moved from a system of integration to a fully separate system in 1990, the general movement has been in the opposite direction—from a separate system to a fully integrated one. For example, France integrated its system in 1965, the United Kingdom in 1973, Germany in 1976, Australia in 1987, and New Zealand a year later. See K.C. Messere, Tax Policy in OECD Countries: Choices and Conflicts 346 (1993). Reports from both the OECD and the EU have, although sometimes obliquely, supported full integration over separate income taxation; Meade Committee Report, supra note 32; OECD, Taxing Profits in a Global Economy: Domestic and International Issues 25-30 (1991) [hereinafter OECD Report]; Ruding Committee Report, supra note 35, at 31-34.

    Another way of putting it is that economic rents are the part of a return on an investment that exceeds the amount needed to induce the investment in the first place. A patent, for example, can produce economic rents.

    For example, if the cost of money is 8 percent, any amount in excess of 8 percent can be taxed away before the investor will select another investment, which, by definition, pays only 8 percent. See Ruding Committee Report, supra note 35, at 31-32; OECD Report, supra note 41, at 21-23 (1991). See also Richard Musgrave, The Theory of Public Finance 262-67 (1959); Carl Shoup, Public Finance 266-69 (1969).

    For example, if the risk-free cost of capital is 5 percent, then an investor will be willing to put her or his money into a risky investment if the chances are, on average, that she or he will receive 5 percent. Assume that a person at a 40 percent marginal tax rate invests $100 in a company and that income in excess of the cost of capital is taxed away as economic rents. If, in year 1, the company’s return on equity were 10 percent, and if it then distributed all of its earnings, the company would pay tax of 5, and the stockholder would pay tax of 2 (40 percent × 5), for a total tax of 7. However, assume that the extra 5 percent earned in year 1 did not constitute economic rents, but a risk premium for investing in equity. The next year the investor would be as likely to earn nothing as she was to earn 10 percent the year before. Therefore, assume that the company had no earnings in year 2. Neither company nor investor would owe any tax. That would mean that, over a two-year period, the investor would have paid tax at a rate of 70 percent. This approach would clearly result in a bias away from risky investments.

    One is to permit enterprises to deduct the full cost of all capital investments. The effect of such a deduction would be to eliminate company tax on earnings equal to the risk-free cost of money. In other words, only returns on capital in excess of the cost of money, represented by the present value of a full deduction for capital investment, would be subject to tax. Such a tax on rents would not look like a withholding tax on enterprise income. However, it could be added as a separate tax to a withholding tax on enterprise income. See Meade Committee Report supra note 32, at 232-33. However, there are a number of caveats: (1) tax rates must remain the same, (2) the tax savings from the expensed asset must be invested at the same rate of return, (3) there must be no preexisting assets on which income can be exempted, (4) all expensed assets must be subject to taxation on disinvestment, (5) the taxpayer must benefit fully from a current deduction, and (6) the investor must be able to borrow any needed funds at a fixed rate of interest. Michael Graetz, Implementing a Progressive Consumption Tax, 92 Harv. L. Rev. 1575, 1597-605 (1979).

    Even if such a redesigned enterprise tax on rents were added to a withholding tax on income, there could still be an adverse effect on the economy. For innovation to occur, a higher rate of return from innovative ideas may be necessary. This is not just compensation for risk; it is also compensation for the labor that goes into innovation, but for which there has been no other compensation. This theory holds only if the innovators (or those who select them) have an equity participation in their product, something that anecdotal evidence suggests is often the case. The theory can be extended to portfolio equity investors. They are able to pick “winners” only because they apply their own labor to pick them. If these profits were taxed as rents, a decrease in innovation, and the money to finance it, would result.

    This argument has been raised directly with the authors by a number of officials in countries in Eastern Europe and Asia.

    American Law Institute, Federal Income Tax Project, Reporter’s Study Draft—Subchapter C (Proposals on Corporate Acquisitions and Dispositions) 327 (1989).

    This is probably one of the most important arguments against eliminating double taxation in industrial countries such as the United States as well as in developing countries. See, e.g., U.S. Treasury Report, supra note 3, at 33. In Ghana, until 1975, the Income Tax Law provided for complete integration of company and personal income taxes. An official tax commission stated in 1977 that it was unable to establish the rationale for adopting the classical system in 1975. However, once enacted, the classical system was difficult to repeal for revenue reasons. See Seth E. Terkper, Ghana, Trends in Tax Reform (1985-93), 8 Tax Notes Int’l 1267 (May 9, 1994). See also Meade Committee Report, supra note 32, at 227-29.

    Id. See also American Law Institute, Federal Income Tax Project, Reporter’s Study Draft—Subchapter C (Supplemental Study) (1989); Report of the Royal Commission on Taxation to the Federal Government of Canada (Kenneth Le M. Carter, Chairman), Dec. 1966 [hereinafter Carter Commission Report], ch. 19.

    See Dale W. Jorgenson, Tax Reform and the Cost of Capital: An International Comparison, 6 Tax Notes Int’l 981 (1993); David R. Tillinghast, Corporate-Shareholder Integration as an Obstacle to the International Flow of Equity Capital, 5 Tax Notes Int’l 509, 510 (1992).

    See ALI Integration Report, supra note 24, at 21; George R. Zodrow, On the “Traditional” and “New” Views of Dividend Taxation, 44 Nat’l Tax J. 497, 501 (1991).

    See supra ch. 14, secs. IX, X.

    See generally OECD Report, supra note 41, at 25; Sijbren Cnossen, Corporation Tax in OECD Countries, in Company Tax Systems 73-77 (John G. Head & Richard E. Krever eds., 1997).

    See generally Richard A. Brealey & Stewart C. Meyers, Principles of Corporate Finance, ch. 16 (4th ed. 1991); Frank H. Easterbrook, Two Agency-Cost Explanations of Corporate Dividends, 74 Am. Econ. Rev. 650 (1984); Merton H. Miller & Myron C. Scholes, Dividends and Taxes, 6 J. Fin. Econ. 333 (1978).

    James Poterba & Lawrence Summers, The Economic Effects of Dividend Taxation, in E. Altman & M. Subrahmanyan (eds.), Recent Developments in Corporate Finance (1985); Zodrow, supra note 51; Leif Muten, Bolagsbeskattning och kapitalkostnader (1968) (The Corporate Income Tax and the Cost of Capital).

    See supra ch. 18.

    See Richard K. Gordon, Law Reform and Privatization, 13 Boston Univ. Int’l L. J. 264 (1995)

    See supra ch. 18. The elimination of additional withholding tax on distributions to nonresidents is the system used in Singapore, for example.

    See, e.g., 4 Carter Commission Report, supra note 49, at 51-57; OECD Report, supra note 41, at 32; U.S. Treasury Report, supra note 3, at 2-4.

    For example, the U.S. Treasury recommended a single rate of tax on all business income, primarily because it would aid in the administration of the income tax. Nevertheless, it bows to political reality by failing to recommend one at the present time. See U.S. Treasury Report, supra note 3, at 2-4.

    Many systems, particularly transition economies, that subject at least some business enterprise income to double taxation do so by levying a final withholding tax on the amount of the distribution, often at a rate lower than the top marginal rate of individuals. However, the rates of the final withholding tax vary among nonresident taxpayers, and the tax does not generally apply to investors that are legal persons. See, e.g., KAZ TC arts. 31-33. Systems that tax enterprise income only once, at a single schedular rate, do not need to levy an additional withholding tax. See McLure et al., Taxation of Income from Business and Capital in Colombia 91-95 (1990). The Dominican Republic imposes a withholding tax that is essentially an advance corporate tax, because the corporation receives a credit for it. See DOM TC §§ 297, 299, 308.

    See infra note 86.

    See supra ch. 18.

    Where, in the exceptional case, interest on debt is not deducted, it will usually be capitalized into the cost of an appropriate asset, to be subtracted in calculating the gain or loss made on the disposal of the asset.

    See generally the discussion in chs. 14 and 16 on interest expense.

    See infra sec. V(A)(3)(A).

    For examples, see William D. Andrews, Personal Deductions in an Ideal Income Tax, 86 Harv. L. Rev. 309, 337-41 (1972).

    See supra sec. I.

    See vol. 1, ch. 13.

    Some commentators have suggested that, over the past 60 years in the United States, the real risk-free rate of return has been less than 1 percent, with an inflation risk of only 3.1 percent. With nominal interest rates for most borrowers often vastly exceeding this amount, the difference can largely be attributed to default risk. See Bankman & Griffith, supra note 30, at 337-38, 387-90.

    See the discussion regarding discounted instruments, supra note 13. See also the discussion of accrual accounting of interest in ch. 16.

    See the discussion of mismeasurement and accrual of interest income and its relationship to different effective rates for debtor and creditor, in Joseph Bankman & William A. Klein, Accurate Taxation of Long-Term Debt: Taking into Account the Term Structure of Interest, 44 Tax L. Rev. 335, 335-37, 348, 367 (1989), and in Shaviro, supra note 16, at 432-33.

    If rates differ among creditors, allocation of payments between interest and principal and temporal allocation of interest will continue to be necessary. See U.S. Treasury Report, supra note 3, at 53-54.

    There are possible exceptions where the equity investor might be able to realize the loss. See infra note 79. However, even if losses did flow through, the investor might not have had enough other income against which the loss could be taken, and from which a benefit would accrue for the deduction. Although many tax systems permit taxpayers to carry back losses for a refund if they had paid tax in previous years, or to carry forward losses against income tax due in the future, it is likely that no existing income tax system allows for a refund for business losses if no tax has been paid in the past or if none is paid in the future. Even in the latter case, a deduction that can be taken in the future bears the loss of time value of money. See sec. IV(A).

    There may be other reasons for an entity losing the benefit of a current deduction for interest, such as rules for stripping earnings or for “quarantining” interest that govern borrowings used to finance investments in income-preferred assets. See infra sec. V(A)(3)(A).

    Of course, the benefit received by the creditor can then be shared with the enterprise.

    Including as a result of loss carrybacks. See supra note 74.

    See generally Stephen Lewis, Taxation for Development 57-58, 87-90 (1984); David Bradford, Untangling the Income Tax 15-43 (1986).

    These exceptions relate to whether the enterprise, or its equity investor, can realize the loss in another way. One way would be for the investor to sell his or her interest at a loss, with the loss being reflected in the interest payment or accrual made at the entity level. If this loss can be used to reduce taxes at the investor level, such as through the application of a capital gains tax at the investor level that permits the deduction of losses, then the value of the interest deduction can, in fact, be used.

    This also raises the question of deductibility of interest by the physical person investor or flow-through entity on debt to acquire equity interests in enterprises subject to separate taxation. See supra ch. 16, sec. VI(A).

    See infra sec. VII.

    Id.

    See, e.g., USA IRC §§ 7872, 462(a) and (g). Continental systems such as the French and German have separate, although general, rules for imputation of interest income for legal and for physical persons, as well as specific rules for imputation of interest between or among related parties. See chs. 14, 16.

    In 1984, the U.S. Treasury recommended a 50 percent deduction for dividends, see Treasury I, supra note 3, at 136-37, while the White House recommended a 10 percent deduction; see Treasury II, supra note 3, at 122-26.

    See supra ch. 18. A deduction for an imputed return on equity is allowed in Croatia. See HRV PT §§ 7-9; Manfred Stöckier and Harald Wissel, Die Gewinnbesteuerung in der Republik Kroatien, Internationale Wirtschafts-Briefe 527 (June 14, 1995).

    The comprehensive business income tax would levy tax on a schedular basis at the entity level on both debt and equity investments by denying a deduction for interest, levying a single tax on entity income, and exempting from tax at the investor level both equity distributions and interest payments. U.S. Treasury Report, supra note 3, at 39-58.

    This would be because, without accrual of taxable interest to the creditor, no tax would be levied on that interest.

    See the discussion regarding earnings-stripping provisions in chs. 16, 18.

    Moreover, problems may arise in applying a foreign tax credit for the creditors. See the discussion of these regimes in ch. 18.

    See supra note 78.

    To do so is “to achieve a second-best state through the creation of compensating distortions.” Boris I. Bittker, A “Comprehensive Tax Base” as a Goal of Income Tax Reform, 80 Harv. L. Rev. 925, 983-84 (1967).

    See Shakow, supra note 33, at 1165.

    Although there is also a shift in risk to the lender. See Shaviro, supra note 16, at 442-43.

    As chapter 16 discusses, many jurisdictions limit interest deductions for financing tax-preferred income. The U.S. Internal Revenue Code provides for one of the most exhaustive limits on interest deductibility. See USA IRC §§ 56(b)(1)(C) (limitation on interest deduction for purposes of minimum tax); 163(d) (limitation on deduction of interest on investment indebtedness); 170(f)(5) (limitation on deductibility of interest on debt incurred to purchase or carry bond given to charity when interest relates to period during which donor is not taxed on income from bond); 264 (disallowance of deduction for interest on indebtedness related to insurance contracts); 265 (disallowance of deduction for interest on indebtedness related to tax-exempt income); cf. USA IRC §§ 263A(f) (capitalization of construction-period interest); 246A (limitation on dividend-received deduction for debt-financed portfolio stock); 291(e)(l)(B) (partial disallowance as tax preference of interest on debt incurred by financial institutions to purchase or carry tax-exempt bonds); 1277 (deferral of interest deduction allocable to accrued market discount); 1282 (deferral of interest deduction allocable to accrued discount); 7701(f) (regulations to be prescribed to prevent avoidance through related parties of provisions that deal with linking borrowing to investment).

    Using the formula: amount of increase in adjusted cost of a particular asset = adjusted cost of the particular asset/sum of adjusted costs of all assets x total increase of adjusted cost of all assets. Such a formula is used in the United States when a company is purchased through the sale of its shares. To ensure that the adjusted cost of the assets of the company equals the adjusted cost of the shares of the company, the company may “step up” the adjusted cost of its assets. See USA IRC § 338(a) and (b)(l), (4), and (5). See also Treas. Reg. §§ 1.338-3(b), 1.338-4. See also the discussion of related issues in ch. 20. This ensures that gain on the assets is paid only once and results in better correlation of what the Americans call “inside basis” (the adjusted cost of assets held by the enterprise) and “outside basis” (the adjusted cost of the equity interests in the enterprise). Cf. infra ch. 21, sec. II(G). Such a system of comparing total adjusted costs of assets with total borrowings can perhaps be more easily implemented if the balance sheet method of entity taxation is used. See supra ch. 16. In fact, an adjustment for an increase in adjusted cost for each individual asset can be analogized to the balance sheet inflation adjustment described in vol. 1, ch. 13.

    Typically, the adjusted cost of the entity equity interest is reduced by the distribution. Once the adjusted cost drops to less than zero, the difference between the cost and zero may be included in income. When the equity interest is transferred, there may be a taxable capital gain (or loss) on the transfer. See ch. 21.

    Once again, excluding the issue of taxing capital gains and losses on the transfer of an entity interest.

    One of the few examples is the treatment afforded partnerships (and similar legal forms) in Indonesia. IDN IT §4(1).

    See U.S. Treasury Report, supra note 3, at 18-21; ALI Integration Report, supra note 24, at 58-66.

    Id.

    Although this section focuses on the relationship between individual investors and legal persons, the issues discussed below and the choice of mechanism also arise when the investment is made through the mediation of another legal person. In other words, these kinds of mechanisms are even more necessary to prevent the cascading of corporate taxes and dividend withholding taxes as corporate earnings are passed through a chain of corporations to the individual who is the ultimate investor.

    The after-tax return to the shareholder will depend significantly upon the form in which profits are made available to shareholders: cash distribution, distribution of enterprise assets in lieu of cash, allotment of new shares paid for from profits, redemption of existing shares paid for from profits, retention of profits, and so on. In the following discussion, it is assumed that the enterprise’s managers choose only the first and last alternatives, distributing some fraction of the enterprise’s profits as cash and retaining any balance for reinvestment. It will also be assumed that the cash distribution is not a liquidating distribution (or that, if it is, the distribution is dealt with in an identical manner to a cash distribution).

    It is also assumed that all distributions made are taxable so as to prevent managers from recharacterizing detected evasion as the return of capital to shareholders. This assumption accords with the probable wish of the enterprise’s managers that shareholders believe that the distribution is from profits, not a return of their investment.

    There is a voluminous body of literature on this issue. For descriptions of various methods of interaction and differing taxonomy, see generally 4 Carter Commission Report, supra note 49, at ch. 19; Blueprints, supra note 3; OECD, Company Tax Systems in OECD Member Countries 9-11 (1973); Alvin C. Warren, The Relation and Integration of Individual and Corporate Income Taxes, 94 Harv. L. Rev. 719 (1981); George F. Break, Integration of the Corporate and Personal Income Taxes, 22 Nat’l Tax J. 39 (1969); Charles E. McLure Jr., The Integration of the Personal and Corporate Income Taxes: The Missing Element in Recent Tax Reform Proposals, 88 Harv. L. Rev. 532 (1975); Charles E. McLure Jr., Integration of the Income Taxes: How and Why, 2 J. of Corporate Tax’n 429 (1976); Charles E. McLure Jr., Must Corporate Income Be Taxed Twice? (1979); J. Pechman, Federal Tax Policy 179-89 (5th ed. 1987); Richard M. Bird, Taxing Corporations (1980); Martin Norr, The Taxation of Corporations and Shareholders (1982); OECD, Theoretical and Empirical Aspects of Corporate Taxation; chs. 1, 2 (1973); Martin Feldstein, Capital Taxation, ch. 8 (1983); Congressional Budget Office, Revising the Corporate Income Tax, ch. 8 (R. Lucke ed., 1985); Julian Alworth, Piecemeal Corporation Tax Reform: A Survey, in The Political Economy of Taxation 72-73 (Alan Peacock & Francisco Forte eds., 1981); Alan J. Auerbach, Debt, Equity and the Taxation of Corporate Cash Flows, in Debt, Taxes and Corporate Restructuring 108-26 (John B. Shoven & Joel Waldfogel, eds. 1990); R.A. Musgrave & P.B. Musgrave, Public Finance in Theory and Practice 395-98 (4th ed., 1984); Richard J. Vann, Eliminating the Double Tax on Dividends: Legal and Practical Issues, chs. 4, 5 (1986); Sijbren Cnossen, Alternative Forms of Corporation Tax, 1 Australian Tax Forum 253 (1984); Peter Harris, Corporate/Shareholder Income Taxation (1996).

    If nonresidents are not to benefit, there may be an issue about whether denying benefits to nonresidents is allowed under the tax treaties of the country. Many tax treaties will contain rules prohibiting discrimination against the nationals of the other treaty partner, and it is a matter of debate whether this denial would breach the nondiscrimination provisions of the treaty. The United Kingdom deliberately chose to implement its interaction mechanism at the enterprise level to avoid this issue.

    Many jurisdictions will use a combination of systems—using one for individuals, another for corporations or other intermediaries, and yet another for nonresident shareholders. For example, the United States employs a classical system for individual shareholders and a partial dividend-received deduction system for corporations; Canada employs an imputation system for individual shareholders and a full dividend-received deduction system for corporations; Australia employs an imputation system for individual shareholders and a tax credit system for corporate shareholders.

    See Messere, supra note 41, at 342-43 (lamenting the imprecise usage in this area).

    Even the number of interaction mechanisms is a matter for debate. See Pechman, supra note 103, at 175-81 (who says there are five groups but lists six); OECD, Company Tax Systems, supra note 103, at 10 (which lists three). The discussion will not pursue some of the more unusual types of interaction mechanism that have been proposed at various times but not yet implemented.

    For example, the U.S. Treasury praised the imputation systems for their “flexibility to respond to different policy judgments on the most important issues of integration.” U.S. Treasury Report, supra note 3, at 93. The systems may also be seeking objectives beyond those described above as the defects of the classical system, and possibly also objectives different from each other. For example, it is claimed that imputation systems in Europe were introduced to encourage more people to hold shares, to increase compliance with the corporate tax, and to encourage capital-export and capital import neutrality within the European Union. See Bird, supra note 103, at 232-35; Harry G. Goure-vitch,Corporate Tax Integration: The European Experience, 31 Tax Lawyer 65 (1977); Hugh J. Ault, Introduction, in Imputation Systems—Objectives and Consequences 10 (Hugh J. Ault ed., 1983) (“it was generally hoped that a more favorable treatment of dividend distributions would increase investment in corporate stock, especially on the part of small investors”); Cnossen, The Imputation System in the EEC, in Comparative Tax Studies: Essays in Honor of Richard Goode 85, 105 (S. Cnossen ed. 1983) (“It seems desirable that shareholdings be spread more widely than is the case at present. The imputation system might promote that objective.”). The different goals that various interaction mechanisms may be pursuing are most apparent in the more unusual systems suggested, such as the Institute of Fiscal Studies’ ACE system, which creates a notional deduction to the corporation for the value of shareholder equity employed by the corporation, with the principal objective of equalizing the return to investors on debt and equity. See Institute for Fiscal Studies, Equity for Companies: A Corporation Tax for the 1990s (1991); see also supra note 85. The U.S. Treasury Report set out with the explicit goals of retaining the implicit tax collected at the corporate level on tax-exempt investors, taxing business income only once (rather than in two offsetting installments). U.S. Treasury Report, supra note 3, at 13.

    Cnossen, supra note 108, at 92, for example, notes that “under the imputation system the double tax is mitigated at the level of the shareholder. It would also have been possible, of course, to provide relief at the corporate level by providing a deduction for dividends paid in computing taxable profits.… This avenue, which should yield the same result as imputation, has not been followed, however, because governments did not want foreign shareholders to share automatically in the relief.” See also Bird, supra note 103, at 232-35, 239; OECD, Company Tax Systems, supra note 103, at 23-30; U.S. Treasury Report, supra note 3, at ch. 7.

    This latter concern seems to have played a major role in the decision of the U.S. Treasury to suggest a dividend-exemption system, because it collects at least some tax from otherwise exempt investors. U.S. Treasury Report, supra note 3, at ch. 6.

    Reuven S. Avi-Yonah, The Treatment of Corporate Preference Items Under an Integrated Tax System: A Comparative Analysis, 44 Tax Law. 195 (1990); Pechman, supra note 103, at 180; U.S. Treasury Report, supra note 3, at 93 (“an imputation credit can extend the benefits of integration to tax-exempt and foreign shareholders by allowing refundability of imputation credits or it can deny such benefits by denying refunds”).

    This is particularly true of the imputation systems in Australia, France, and Germany. See Avi-Yonah, supra note 111, at 214 (“as the German example shows, however, tracking of income can lead to very complicated account-keeping requirements”).

    See Pechman, supra note 103, at 179 (“experts agree that it would not be practical to extend the partnership method to large, publicly held corporations with complex capital structures, frequent changes in ownership, and thousands or millions of stockholders”); Auerbach, supra note 103, at 105 (describing proposals for integration as “pure in concept, ambitious in scope, and unadopted in practice”); 4 Carter Commission Report, supra note 49, ch. 19 (recommending an optional profit-attribution system because of the solvency and administrative problems); Vann, supra note 103, at 30-34.

    Some others believe that these administrative difficulties have been overstated. John G. Head & Richard M. Bird, Tax Policy Options in the 1980s, in Comparative Tax Studies 16 (Sijbren Cnossen ed., 1983) (“although the difficulties are considerable, there appear to be no insuperable problems”); Anthony P. Polito, A Proposal for an Integrated Income Tax, 12 Harv. J. L. & Pub. Pol. 1009 (1989); Peter L. Swan, An Australian View on Integration, in Taxation Issues of the 1980s (J.G. Head ed., 1983). It is interesting to note that the U.S. Treasury considered even an imputation system unnecessarily difficult to administer. U.S. Treasury Report, supra note 3, at 93.

    See 4 Carter Commission Report, supra note 49, ch. 19.

    The United States is the most obvious example of a country that still retains the classical system for individual shareholders, although even it has had a fully integrated system for small corporations in Subchapter S of the Internal Revenue Code 1986. But in respect of larger corporations with more than one class of shares, nonresident shareholders, or passive income, the United States moved clearly against the current trend toward interaction in 1986 by eliminating the $100 dividend-received deduction for individual shareholders. IRC § 116 (repealed). The United States also reduced the size of the deduction for corporate shareholders in some cases from 80 percent to 70 percent of dividends received depending upon the degree of affiliation between the companies. For corporate shareholders, the United States still retains the dividend received deduction system; IRC § 243. For a discussion of the Netherlands and Luxembourg, see J-M Tirard, Corporate Taxation in EC Countries, 1990-91, at 12-13 (1991).

    Sweden, inspired by the full imputation systems applied in Finland and Norway, exempted dividend income in the hands of shareholders in 1994, only to restore the full classical system (without the previous partial deduction system) from 1995.—L.M.

    See generally, OECD Report, supra note 41, at 9-41; McLure, Must Corporate Income Be Taxed Twice? supra note 103, ch. 3.

    See Myron S. Scholes & Mark A. Wolfson, Taxes and Business Strategy 56-57 (1992).

    The effect of deferral is the same as formally imposing a lower rate, or as the revenue authority’s making an interest-free loan of the unpaid tax to the taxpayer. Hence, the discussion will treat (Tg) as being a rate less than (Ti), even though this may not appear formally to be the case.

    Robert R. Officer, The Australian Imputation System for Company Tax and Its Likely Effect on Shareholders, Financing, and Investment, 7 Aust. Tax F. 353,376-77 (1990).

    To facilitate the discussion, foreign income will be called “not taxable” as a shorthand reference to the results of the system for eliminating double tax on foreign-source income. Most countries will have in their domestic laws (and supplemented by international double tax treaties) either a credit system to reduce domestic tax on foreign income or a formal exemption system for foreign income. When foreign income has been comparably taxed at source, and either of these domestic systems applies, the result is that no further residence country tax will be imposed on the income.

    See Article 10, Model Tax Convention on Income and on Capital, OECD Committee on Fiscal Affairs, Organization for Economic Cooperation and Development, Paris (updated as of Sept. 1, 1995) [hereinafter OECD Model Treaty]. See supra ch. 18.

    See Norr, supra note 103, at ch. 5/C. Before June 1992, Greece, for example, had a dividend-paid deduction system. Tirard, supra note 115, at 102-03. A dividend-paid deduction system is used in Iceland and Hungary and was used in the United States in 1936-37. See Cnossen, supra note 103, at 54-55; Pechman, supra note 103, at 176-77.

    See Cnossen, supra note 103, at 92 (noting that the effect of a dividend deduction system is to treat equity as debt, giving the enterprise a deduction for its dividend payments as it does for its interest payments).

    See supra ch. 18.

    For example, Germany and Hungary apply different rates to distributed and undistributed profits, Germany applying a higher rate on retentions and Hungary a higher rate on distributions. Tirard, supra note 115, at 71-72, 87-88; Cnossen, supra note 103, at 54-55. This was also the first of many suggested interaction mechanisms proposed for uniform adoption in Europe. Tax Harmonization in the Common Market (Neumark Report) (1963). See Bird, supra note 103, at 227-28.

    See Norr, supra note 103, ch. 5/B. For example, a further tax was imposed on retained profits in both Australia and the United States. AUS ITAA Div. 7 (repealed). This was not done apparently to formalize the interaction of the enterprise tax and personal income tax although it had the effect of reducing one distortion from the lack of coordination—different rates applying to retained and distributed earnings. The surcharge was imposed to encourage distribution so that there was no gain from sheltering income within the enterprise and the classical system could collect the further tax from the shareholders.

    This system is used in France and Germany, although in both countries in combination with an imputation system. There is also a disparity in actual practice, with Germany imposing a lower rate on distributed profits, while France imposes a lower rate on retained profits.

    In some cases, Tg = 0, for example, in countries like Germany that generally do not tax capital gains of individuals, except for cases of substantial participation.

    In the discussion that follows, an issue arises about whether the division of profits (P) occurs before or after the tax is subtracted—that is, does the shareholder receive d percent of aftertax profits or d percent of P, from which tax is taken out? For the purposes of the subsequent presentation, it is assumed that the shareholder receives d percent of P, the pretax profits, and the tax applicable to each share is then taken out at the appropriate rate.

    Germany found that its split-rate system offered excessive benefits to foreign-owned companies, which could distribute profits taxed at Tcd, enjoy reduced withholding tax, and reinvest without being subject to tax in their home countries. For example, keeping up a high enough withholding tax in these cases reportedly cost Germany dearly in its treaty negotiations with the United States.

    A version of this system, allowing a deduction for 50 percent of dividends paid, was proposed for the United States in 1984. See Treasury I, supra note 3. It was later revised to a deduction for 10 percent of the amount of dividends paid. See Treasury II, supra note 3. See Bird, supra note 103, at 235-36; Avi-Yonah, supra note 111; U.S. Treasury Report, supra note 3, at ch. 12A.

    See Norr, supra note 103, at ch. 6/B. Belgium and the United States, for example, have a dividend-received deduction system for intercorporate dividend distributions; Denmark has an exemption system.

    See USA IRC § 116 (repealed).

    This is the case in Canada and the United States. In Australia, the deduction of the dividend is replaced by an automatic credit of the amount of tax payable on the dividend. The effect of this credit system is the same as an automatic, full dividend-received deduction.

    See, e.g., Charles McLure et al., The Taxation of Income from Business and Capital in Colombia 91-95 (1990).

    See USA IRC § 116 (repealed) (which limited the individual’s deduction to the lesser of the amount of dividends received or $100).

    One important difference would arise, however, if other provisions in the tax system denied a deduction for interest on money used to derive exempt income and if foreign dividends were treated as exempt. In this case, interest on loans used to finance investments that yielded dividends from foreign enterprises would be nondeductible. That result would not necessarily follow if the law contained no similar provision for interest on money used to derive income that was both included and then deducted.

    Some of the countries with an imputation system are Australia, Canada, Finland, France, Germany, Ireland, New Zealand, Norway, and the United Kingdom. See generally Cnossen, supra note 103, Table 1.

    As will be seen below, some countries, such as Australia, simply impute company taxes paid and then require the shareholder to pay over any additional tax due on untaxed distributions. Other countries apply an additional withholding amount or “compensatory tax” on distributions out of accounting income that have not borne company tax. Called simply withholding in New Zealand, the Advance Corporation Tax (ACT) in the United Kingdom, the précompte mobilier in France, the imposta di congualio in Italy, and the Ausschüttungsbelastung in Germany, its principal point is to enforce collection of tax on distributed income not taxed at the company level. There can be ancillary purposes as well. The United Kingdom does not integrate company and investor taxes completely. The ACT serves in part to ensure some double taxation of income.

    See Avi-Yonah, supra note 111.

    France and Germany also give a credit to shareholders (for supposed payments of enterprise tax) that is calculated by reference to the enterprise tax rate rather than the enterprise’s actual tax payment. See Tirard, supra note 115.

    The ACT is payable at a flat rate on a distribution regardless of whether the profits out of which the distribution is made have already borne tax and regardless of the actual rate of tax that will be imposed upon the enterprise. The payment of ACT discharges the enterprise’s primary tax liability to the extent of the ACT payment, and the individual shareholder is credited with the ACT payment against the shareholder’s tax liability on the dividend received. See generally R. Bramwell et al., Taxation of Companies and Company Reconstructions ch. 9 (4th ed. & Supp., 1988).

    Enterprise-level tax preferences (and credits for tax paid on foreign income) are an issue under an imputation system that traces actual payments of enterprise tax because the value of the preference (or foreign tax credit) will be recaptured if (untaxed) profits are distributed and even, to a lesser extent, for taxed profits if they are retained. The value of the preference under such a system is reduced from a tax exemption to a tax deferral, which may not be consistent with the level of subsidy intended by the government. It would be possible to solve the problem by specific adjustments to the tax credits offered to shareholders: either to gross up the tax the enterprise actually pays by an amount to represent tax not paid but attributable to preference items or foreign income, or to gross up the shareholder’s tax credits. See Avi-Yonah, supra note 111.

    See, for example, the adjustment made in Australia to the tax liability on trust distributions where part of the distribution represents untaxed profits, reduced because of the building depreciation deduction. AUS ITAA § 160ZM. This same adjustment is not made to distributions from companies with similar deductions.

    Even for retained profits, the value of the tax preference is reduced but in this case by less. The value of the preference will possibly be recaptured when profits on the sale of the shares are taxed as capital gains. The size of the recapture depends on how soon the shares are disposed of, the interest discount factor, and the tax rate applicable to capital gains. In the right circumstances, it is possible for the amount of recapture to approach zero.

    See U.S. Treasury Report, supra note 3, at appendix B2.

    See Bird, supra note 103, at 236 (“as in Belgium, Italy and Denmark, the amount of the dividend tax credit is completely independent of whether any tax was paid at the corporate level at all”); U.S. Treasury Report, supra note 3, at 164 (“because the shareholder credit is not dependent on the actual payment of corporate tax, the Canadian system does not require rules allocating credits to dividends”).

    See CAN 1TA § 123(1).

    See CAN ITA § 12(1)(j). The section requires an individual shareholder resident in Canada to include in income any “dividend paid by a corporation resident in Canada on a share of its capital stock,” and § 82(1) in effect requires the shareholder to include 125 percent of the amount of any dividend in income.

    CAN ITA § 121 provides a credit against tax on the increased dividend of “two-thirds of any amount that is required by paragraph 82(l)(b) to be included in computing his income for the year.”

    The real possibility that the capital gain may also escape tax under Canada’s rather unusual lifetime $100,000 capital gain exemption introduced in 1985 will not be explored. See CAN ITA §110.6.

    The following explanation gives a flavor of the actual complications. When the enterprise reports all of its profits, the balance available for distribution is [P(1 − Tc)]. The net amount distributed [dP(1 − Tc)] is then increased by the gross-up amount representing tax that the corporation is assumed to have paid. This step is effected by multiplying the net dividend by a fraction and adding this amount to the net dividend. When all profits are reported, this step becomes dP(1 − Tc) + dP(1 − Tc)a = dP(1 − Tc)(l + a), where (a) is a gross-up factor applied to dividends received by a resident. The total amount is then subject to personal income tax [dP(1 − Tc)(1 + a)Ti], and the shareholder is entitled to a credit against the personal income tax liability of a proportion (b) of the amount that was included by the grossing-up procedure [bdP(1 − Tc)a]. The net tax at the shareholder level on distributed dividends is thus the balance of the liability remaining after subtracting the credit [dP(1 - Tc)(1 + a)TibdP(1 − Tc)a, and the shareholder, after paying tax, retains dP(1 - Tc)(l + a)(l − Ti) + bdP(l − Tc)a.

    Some of the more important adjustments are the current tax surcharge of 3 percent, the provincial tax credit, the small business tax credit (referred to rather confusingly as the “small business deduction”), and the manufacturing and processing tax credit. See CAN ITA, division E, subdivision b. The basic individual rate is currently 29 percent. CAN ITA § 117(2). Each province then imposes further tax on the federal tax payable—the basic rate in Ontario, for example, is a further 52 percent of the federal tax, giving a combined provincial and federal rate of 44 percent. The federal tax rate is also increased by a 5 percent surtax and a further 3 percent “super surtax” on high-income taxpayers. See CAN ITA § 180(1). Given a current corporate tax rate in Canada of 38 percent with a multitude of further tax adjustments, and personal marginal rates approaching 50 percent, it is clear that something less than full integration of the corporate and personal income tax is achieved by this system. Full relief from double taxation for dividends is almost achieved in practice if the average (and marginal) corporate tax rate is about 20 percent. See Bird, supra note 103, at 236.

    Another approach would address the interest deduction claimed by the taxpayer. The United States, for example, has loss limitation rules for passive activities. See USA IRC § 469. Rules of this type would defer the interest cost, driving up the taxpayer’s income in the current year and generating a tax liability against which the tax credit would be needed. A third possibility would be a dual income tax system as practiced in Finland, Norway, and Sweden. See Leif Mutén et al., Towards a Dual Income Tax? (1996).

    If only the $6,000 of enterprise tax actually paid had been used in the imputation calculations, the value of the incentive would have been recovered at the investor level. In the first example, the shareholder reports as income $30,000—the sum of the dividend of $24,000 and the enterprise tax paid. The taxpayer has a tax liability of $7,500 (25 percent of $30,000) and a tax credit of $6,000, leaving a net tax payment due of $1,500 and total tax of $9,000. In the second example, the shareholder reports as income $30,000—the sum of the dividend of $24,000 and the corporate tax paid. The taxpayer has a tax liability of $9,000 (30 percent of $30,000) and a tax credit of $6,000, leaving a net tax payment due of $3,000 and total tax of $9,000.

    See generally International Fiscal Association, Corporate Tax on Distributions (Equalization Tax) (1994); note 140 supra.

    See generally Michael P. Devereux, The Integration of Corporate and Personal Taxes in Europe: The Role of Minimum Taxes on Dividend Payments (Working Paper 96-5) (unpublished paper prepared for Technical Committee on Business Taxation, Canada); Patrick de Fréminet, Perspective of France, in International Fiscal Association, Corporate Tax on Distributions (Equalization Tax) 55 (1994).

    See FRA CGI §158 bis.

    Foreign-source income is partially excluded from the précompte system by the operation of France’s foreign income system. Typically, profits from foreign branches or dividends from foreign subsidiaries are exempt from tax in France, but for the purposes of operating the précompte system, foreign taxes are also treated as a credit against French tax, in this case, the précompte rather than the mainstream French enterprise tax.

    FRA CGI § 223 series.

    See generally S. James & C. Nobes, The Economics of Taxation 287 (3d ed., 1988); U.S. Treasury Report, supra note 3, at app. B6.

    GBR ICTA § 239(1) provides that “advance corporation tax paid by a company … in respect of any distribution made by it in an accounting period shall be set against liability to corporation tax on any profits charged to corporation tax for that accounting period and shall accordingly discharge a corresponding amount of that liability.”

    GBR ICTA § 20(1), sched. F. The amount taxed is “the aggregate of the amount or value of [any] distribution and the amount of [any] credit.” The credit is provided in GBR ICTA § 231, which states that “where a company resident in the United Kingdom makes a qualifying distribution and the person receiving the distribution is … a person resident in the United Kingdom …, the recipient of the distribution shall be entitled to a tax credit equal to such proportion of the amount or value of the distribution as corresponds to the rate of advance corporation tax.…”

    It will be the same rate if Ti is a marginal rate rather than an average rate since income is subject to reliefs, progressive rates, losses, and so on, while Ta is set at a gross rate.

    The United Kingdom currently imposes tax at 25 percent on corporations with profits less than £150,000 and 35 percent for other corporations.

    This consequence is dealt with in the variety of provisions dealing with surplus advance corporation tax. If the corporation has insufficient tax liability, it can carry the credit back and recover tax paid in prior years or forward to use against the tax liability of future years, the liability of other companies in the group, or controlled foreign corporations. See GBR ICTA §§ 239, 240. This complication will be ignored.

    It also used to be a major problem for the taxation of distributions from foreign income. This issue was resolved in 1994 by the introduction of a special regime, the Foreign Income Dividends system. Under this system, ACT on dividends paid from foreign income, where there is no MCT liability to offset, can be refunded to the corporation. GBR ICTA §§ 246A-246Y.

    GBR ICTA § 14(1) provides that, “where a company … makes a qualifying distribution it shall be liable to pay an amount of corporation tax in accordance with subsection (3).” Section 14(3) formally expresses the ACT rate in the form: I/(100-I), I being “the percentage at which income tax at the basic rate is charged.…” Since, at present, the United Kingdom has only two rates of personal income tax (25 percent and 40 percent), this ACT rate is currently 25/75 or 33⅓ percent. The reference to a “qualifying distribution” is the way that returns of capital and certain other distributions are excluded from tax. Distributions from corporations are not subject to further tax because ACT is collected only on the excess of distributions made over distributions received. GBR ICTA § 241.

    GBR ICTA § 231(3).

    This is done in Estonia and Lesotho. EST ITL § 9(2)(6) (“income of a resident taxpayer does not include … dividends taxable under Article 32 of the present Law”). EST ITL § 32 establishes the ACT system for corporate tax. LSO ITA § 87(6) (“a dividend paid by a resident company shall not be included in the gross income of a resident shareholder”).

    See generally R.J. Vann, Company Tax Reform (1988); Richard E. Krever, Companies, Shareholders and Capital Gains Taxation, 3 Aust. T. F. 267 (1986); Robert Richards & Ross Doherty, The Imputation System (1987); Robert Officer, supra note 120; U.S. Treasury Report, supra note 3, at app. B1.

    AUS ITAA § 160AQT requires the shareholder to include in income the “franked amount” of the dividend increased by this factor.

    See AUS ITAA § 160AQT.

    See AUS ITAA § 160AQU.

    Generally, no tax credits are attached to retentions. Some minor exceptions to the proposition that tax on retained enterprise profits is not credited to shareholders arise in the case of share buyback arrangements and the attributed income of controlled foreign corporations. See AUS ITAA div. 16J of pt. III, § 461. These exceptions will not be discussed further here.

    The amount of the credit is calculated by adjusting the amount of tax paid to express the amount of dividend that can be distributed tax free consequent upon a tax payment of this size. AUS ITAA §§ 160APMA-160APMD. These provisions refer to the amount of the credit as the “adjusted amount” in relation to the payment and § 160APA defines the adjusted amount as the amount multiplied in the manner indicated in the text.

    AUS ITAA § 160AQB prescribes a reduction to the franking account of “the franked amount of the dividend” paid by the enterprise.

    However, if the enterprise is found to have overranked a dividend, it must pay further tax to put the account in surplus. This additional tax is treated as a prepayment of the next year’s tax.

    See AUS ITAA § 160AQT.

    See AUS ITAA § 160AQU.

    Any excess that arises—that is, where dPTc is greater than dPTi—can be used as a credit against the shareholder’s other tax liabilities, but is not refundable.

    This is, of course, not consistent with any neutrality principle—either capital-export or capital-import neutrality—and is accordingly open to criticism.—L.M.

    AUS ITAA § 160AQF provides that all dividends paid under a resolution of the company are taken to be franked to the percentage specified in a declaration made in relation to the dividend. The declaration cannot be varied or revoked. Section 160AQG treats all dividends paid during the year on the same class of shares as being franked to the same percentage declared for the first dividend. The purpose of these sections is to prevent streaming of distributions whereby distributions carrying tax credits are paid to taxpaying entities, while taxable distributions (if any) are directed to tax-exempt bodies. Streaming of this kind would permit the enterprise to increase the after-tax return to both groups of shareholders. The section tries to prevent this practice by insisting on a pro rata attaching of credits rather than a first-in-first-out rule.

    The act also offers the enterprise’s managers the choice of franking the distribution of untaxed profits to 100 percent, but the enterprise will be obliged at the end of the year to pay additional tax to repay the deficit balance in the franking account. That is, the enterprise effectively prepays the next year’s corporate tax.

    See generally Pechman, supra note 103, at 178-81; McLure, Must Corporate Income Be Taxed Twice? supra note 103, at 2-9; Bradford, supra note 78, at 54-56; Blueprints, supra note 3, at 63-69; Bird, supra note 103, at 235. To add to the complexity, there are also partial integration systems. Under a partial integration system, some (or all) of the corporation’s profits are attributed to the shareholders and some (or all) of the corporation’s tax is credited to the shareholders. McLure, supra note 103, at 15-18.

    See Cnossen, supra note 108, at 98; Bird, supra note 103, at 235.

    See generally B. Bittker & J. Eustice, Federal Income Taxation of Corporations and Shareholders, ch. 6 (5th ed., 1987).

    USA IRC § 1372(b)(1) (corporation not taxable); § 1373(b) (shareholders taxable on all income); § 1374 (corporate losses deductible to shareholders). In this model, the corporation effectively ceases to exist as either a separate taxable entity or a withholding point.

    See supra notes 103, 183.

    See USA IRC subpt. F, AUS ITAA pt. X. CFC regimes exist in Australia, Canada, France, Germany, Japan, New Zealand, Norway, Sweden, the United Kingdom, and the United States. See B. Arnold, The Taxation of Controlled Foreign Corporations: An International Comparison (1986). Curiously, while CFC systems were originally developed as a means of eliminating the gain from accumulating lightly taxed income offshore, the substantial income tax rate reductions of the 1980s mean that some taxpayers may now benefit from creating a CFC. See Paul McDaniel & Hugh Ault, Introduction to United States International Taxation 118-20 (3d ed. 1989). See also OECD, Controlled Foreign Company Legislation (1996).

    See Pechman, supra note 103, at 178-81. It is one of the prototypes suggested by the U.S. Treasury Report, supra note 3.

    The result might be prevented in several ways, including, for example, through a further gross-up and credit procedure that increased the basis in the shares by (Tg/ITg) and gave to the shareholder a credit against capital gains tax for the same amount that could be carried forward and used when the shares were sold. Instead, the procedure described here is the one used in the United States to reconcile the capital gains tax and personal income tax on shareholders in S corporations, with appropriate modifications to reflect the fact that the corporate tax has been retained in this discussion. See also Blueprints, supra note 3, at 64. An alternative procedure—used in Australia for the attributed profits of CFCs—writes down the proceeds of sale by amounts already attributed, permitting shareholders to sell retentions of previously taxed income without further tax. AUS ITAA § 461.

    U.S. Treasury Report, supra note 3, at 82 (“not all capital gains from increases in the value of corporate equity arise from accumulated retained earnings. Gains from other sources may imply different tax consequences than those applicable solely to gains from fully taxed retained earnings”); Head & Bird, supra note 113, at 15 note 22 (“a capital gains tax at the personal level would still be needed to tax ‘goodwill gains’—those arising from such factors as improved market position, technological developments, and natural resource discoveries”).

    In the United States, this process occurs in two steps. USA IRC § 1367(a)(1)(A) increases the shareholder’s basis in the shareholding by the “items of income described in subparagraph (A) of section 1366(a)(1).” This is the provision that includes in the shareholder’s taxable income “the shareholder’s pro rata share of the corporation’s items of income (including taxexempt income).” USA IRC § 1366(a)1l)(A). A subsequent provision states that this increase in basis occurs “only to the extent such amount is included in the shareholder’s gross income on his return.” USA IRC § 1367(b)(l). The shareholder’s basis is then reduced by “distributions by the corporation which were not includible in the income of the shareholder by reason of section 1368.” USA IRC § 1367(a)(2). Section 1368 exempts distributions by an S corporation up to the lower of the shareholder’s basis in the shares or the balance in the “accumulated adjustments account.” The result of these provisions is that the shareholder will increase his or her basis in the shares by the net of the income actually disclosed by the corporation and distributions up to the amount actually disclosed.

    These steps have to be modified from those described in note 192 supra because the enterprise tax still remains in operation, unlike the position of S corporations in the United States.

    This problem already arises when a residence country taxes a resident on the accumulated profits of a foreign controlled corporation under its CFC rules. For a discussion of this problem of the interaction of tax treaties and domestic CFC systems, see generally OECD Model Treaty, supra note 122, paragraphs 23-26, Commentary to art. 1. See also OECD, supra note 188.

    From a purely theoretical perspective, it would be possible to require a shareholder who included capital gains and losses on its shares in its tax base to include the return of capital in the tax base, and not require any adjustment of the share’s cost. When the shareholder sold or transferred the shares, the shareholder would realize a loss equal to the return of capital previously taxed. If tax rates on income and capital gains and losses were the same, and if the taxpayer could claim the entire loss, the taxpayer would be made whole.

    This issue is discussed in greater length infra at H.

    With integrated systems, the incentive for the enterprise to find ways to make nontaxable distributions exists only with regard to its untaxed income, while in unintegrated systems the incentive extends to all company income, whether taxed or untaxed at the company level.

    This would include nonresident investors, who would be exempt from additional withholding tax.

    In the former case, distribution plus credit would be added to the shareholder’s income, with a credit given against tax due, with only share cost adjustment in the latter case. In these systems, shareholders may be subject to tax at a rate less than the enterprise rate. While it would be one thing to allow small amounts of profits untaxed at the enterprise level also to go untaxed at the shareholder level, it would be another thing to allow these shareholders to claim credits for enterprise tax that was never actually paid. For this reason, it may be advisable to limit the total amount of credits that can be claimed to total amounts of enterprise tax.

    Of course, corporate law would not govern enterprises other than corporations. However, most large economic enterprises in most jurisdictions operate in corporate form. In certain cases, it may be possible to apply corporate law to other enterprises that function like corporations.

    Such a rule would greatly restrict a company’s ability to borrow against appreciated assets and make distributions to a shareholder of the proceeds of the borrowing. If, however, a tax rule were adopted that required such proceeds to be included in income, they should also be treated as income for corporate law purposes.

    See supra ch. 16.

    This discussion is based on Hugh J. Ault et al., Comparative Income Taxation: A Structural Analysis 304-05 (1997).

    Under French law, corporate stock dividends can be received in cash at the choice of the shareholder.

    Although a time limit is in effect, after which the after-tax profits can no longer be distributed without bearing the précompte mobilier.

    GBR ICTA § 209.

    See Barry Pinson, Pinson on Revenue Law 283 (1981). Generally, the paid-up capital for corporate law purposes is the stated capital of the class of shares in question, as shown in the company’s financial statement.

    GBR ICTA § 210.

    See Barry Pinson, supra note 207, at 284.

    This discussion is based on Brian Arnold et al., Materials on Canadian Income Tax 698 (1993).

    In a number of countries, taxable bonus shares can be issued only if the company has capitalized the retained earnings. See the discussion in Hugh J. Ault et al., supra note 203, at 314-17 (1997).

    In some imputation systems, a shareholder taxed at less than the enterprise rate may qualify for a credit for the difference.

    The ALI Integration Report describes them in this way, while the U.S. Treasury Department Report refers to them as reinvested dividends. ALI Integration Report, supra note 24, at 125-27; U.S. Treasury Report, supra note 3, at 87-88, 106-07.

    As noted supra, in some systems, a shareholder taxed at less than the enterprise rate may qualify for a credit for the difference.

    See DEU KStG § l.

    See FRA CGI § 206.

    See infra ch. 21, note 18.

    CAN ITA § 2.

    See USA IRC §§ 11, 7701(a)(3).

    See infra ch.21, note 38.

    GBR ICTA 1988 § 6.

    Id. 832(1).

    See, e.g., ALB PT § 4; RUS PT § 1(1)(b). Georgia used to tax divisions separately, but has now changed this rule. See GEO TC §§ 12, 44(2).

    E.g., KAZ TC § 6(4), second paragraph (allowing consolidation in limited circumstances upon decision of the government); AZE PT § 1(2) (consolidation for certain taxpayers by government decision).

    See LVA EIT §§ l, 2.

    See LVA LTF § 14.

    See CHN EIT § 2.

    Particularly problematic are enterprises that are operated as partnerships (with greater or lesser degrees of formality) and sole proprietorships. These are generally not legal persons and may or may not be formalized. In China, sole proprietorships are regulated by the Provisional Regulations on the Management of Individual Industrial and Commercial Households in Urban and Rural Areas, promulgated by the State Council on Aug. 5, 1987.

    For example, in China, art. 36 of the General Principles of Civil Law of the People’s Republic of China, reprinted in Robert Guillaumond & Xie Zhao Hua, Code chinois du droit des affaires (Maison Larcier 1995), establishes the concept of a legal person. The Company Law, reprinted in id., establishes two forms of commercial company: limited companies and share companies. Both are legal persons. The law distinguishes between branches of companies, which are not legal persons, and subsidiaries, which are. See id. art. 13. Foreign companies are allowed to establish branches in China and must obtain a business license in order for the branch to be allowed to operate in China. See id. art. 200. However, such branches are not considered separate legal persons. See id. art. 203. The Company Law came into force on July 1, 1994. Companies established before this date are required to take steps to conform to the requirements of this law. See id. art. 229. The procedure for registration is governed by the ordinance of June 24, 1994, reprinted in id.

    For example, in China, the ordinance of June 24, 1994, contemplates the registration of branches, even though branches are not separate legal persons. See Ordinance of June 24, 1994, arts. 39-44, reprinted in 2 Guillaumond & Hua, supra note 229. There is also a registration procedure for permanent representative offices of foreign companies. See Detailed Regulations of the Ministry of Foreign Commerce and Economic Cooperation Concerning the Approval and the Administration of Permanent Representative Offices of Foreign Enterprises, reprinted in id. The distinction is that representative offices cannot “directly engage in profit-making activities on the territory of the People’s Republic of China.” Id. art. 4.

    See USA IRC §§ 501 (b), 511-515.

    In addition, gains and losses of nonresidents are typically exempt either by statute or through bilateral treaties. Of course, this is not to say that there are not benefits to having capital gains taxes, and this chapter argues for the inclusion of gains and losses at the enterprise level. There may in some cases be unleveraged (and therefore untaxed) gains at the enterprise level, and a capital gains tax at the shareholding level would end deferral of tax on those gains when the shares were sold or transferred. Also, there may be gains reflected in the value of shares that are not also reflected at the enterprise level, such as market expectation that an enterprise will earn profits in the future.

    Note: Victor Thuronyi contributed to the writing of this chapter.

    This chapter assumes that the entities being reorganized are corporations or share companies. As discussed in ch. 21, the tax on legal entities may tax as separate entities various organizations (e.g., forms of partnership) that are not share companies. In countries with such rules, appropriate reference to the legal forms that reorganizations of such organizations take will have to be made in the rules on reorganizations. E.g., FRA CGI § 160 (refers to droits sociaux (interests in a company), which is a broader term than actions (shares)). There may be substantial differences in the legal form taken by such reorganizations, compared with the reorganization of share companies. To avoid complicating the discussion, we will not address further the necessary adaptations that would have to be made in such cases.

    EST IT § 25 provides for nonrecognition treatment for reorganizations in accordance with conditions established by the Minister of Finance. The tax codes of Kazakhstan and the Kyrgyz Republic do not contain provisions concerning reorganization, nor does the income tax decree of Saudi Arabia or the profit tax decree of Romania. In some countries, the absence of provisions relating to reorganization can be explained by the fact that capital gains are not subject to tax. See also infra note 45.

    Further discussion on comparative law can be found in Tax Consequences of International Acquisitions and Business Combinations, 77b Cahiers de droit fiscal international (1992)(since many international acquisitions take the form of taxable acquisitions of shares or assets, this work is a good source for discussion of taxable acquisitions; it also deals with tax-free acquisitions and with international business combinations, as well as with related tax planning issues, such as the deductibility of acquisition indebtedness and the impact of imputation systems on acquisition strategies); Peter Begg, Corporate Acquisitions and Mergers (loose-leaf 1997) (covers tax, corporate law, employment law, and regulatory matters in the United Kingdom and the other EU countries); Svetlana Almakaeva, Effects of Russian Tax Treaties and the EC Parent-Subsidiary Directive on the Tax Planning Strategies of European Multinational Groups Investing in Russia, 23 Review of Central and East European Law 77 (1997). See also infra note 15.

    This term is explained supra ch. 16, sec. V(B)(7).

    See Yolanda Kodrzycki & Eric Zolt, Tax Issues Arising from Privatization in the Formerly Socialist Countries, 25 Law & Policy in Int’l Business 609 (1994). See ch. 21 for taxation of investment funds.

    Canada has a definition of an amalgamation in sec. 87 (1) ITA, but no overall definition. Council Directive of July 23, 1990 (90/434/EEC) refers separately to “mergers, divisions, transfers of assets, and exchanges of shares” [hereinafter Merger Taxation Directive]. Similarly, the French tax code refers separately to a merger (fusion), CGI §§ 160 I ter, 210A, division (scission), CGI § 160 I ter, and a transfer of assets (apport partiel d’actif), CGI § 210B.

    In the United States, reorganizations are defined for tax purposes in IRC § 368. In Germany, for corporate reorganizations in general the word Umwandlung is used. Reorganizations are regulated in the Umwandlungsgesetz (UmwG) (Reorganization Law) and the Reorganization Tax Law; see Klaus Tipke & Joachim Lang, Steuerrecht 432 (1991); Dieter Endres & Karen Pilny, Germany Releases Draft Regulation on the Reorganization Tax Act, 14 Tax Notes Int’l 1867 (June 9, 1997).

    Other corporation-shareholder transactions relevant to reorganizations—liquidations and redemption of shares—are dealt with in ch. 19. Nonrecognition rules for the incorporation of sole proprietorships, as well as other corporate and partnership formation transactions, are dealt with in ch. 16.

    Not all of the listed persons are parties in some reorganizations. For example, the shareholders of the acquiring company may not be parties if their share ownership does not change in the reorganization. The list given in the text is a broad concept of party used in a general sense. A somewhat narrower, more technical concept (which includes only the corporations involved) is defined in USA IRC § 368(b).

    Throughout this chapter, we use the term “transferor” to indicate the person or entity transferring assets, shares, securities, or other forms of consideration to another person and the term “transferee” to indicate the person to which such consideration is transferred. The transferor company can also be indicated as the acquired, merged, or divided company, while the transferee company can be indicated as the acquiring, surviving, or newly established company. The terms transferor and transferee are preferred, because they have the same meaning in different kinds of reorganizations.

    This chapter refers to “shares,” whose American equivalent is “stock.”

    CAN ITA § 87. In French this transaction is called absorption. In German, either Verschmelzung or Fusion is used. Directive 78/855/EEC, art. 3 uses the term “merger by acquisition.”

    In the draft merger directive of the European Union a merger or consolidation is valid only when the transfer of the net value is substantially in exchange for shares, see §§ 2–4 draft directive, referring to Directive 78/855/EEC, which allows a cash payment of up to 10 percent of the nominal value of the shares issued. In the United States, however, there are several states in which a merger in the sense of a legal transfer of all assets and liabilities of a company that immediately ceases to exist is possible without consideration being paid in shares.

    In French, this is called a fusion. See FRA CGI, Annex II, § 301B. Directive 78/855/EEC, art. 4, uses the term “merger by the formation of a new company.”

    See Boris Bittker & James Eustice, Federal Income Taxation of Corporations and Shareholders ¶ 13.01 (1987); Albert Radler, General Report, National and International Consequences of Demergers, 79b Cahiers de droit fiscal international 557, 558, 565 (1994). (Readers who want to learn more about the comparative tax law of corporate divisions are referred to this work, including the accompanying country reports.)

    Under USA IRC § 368 (a)(1) (C), (G), the transferor in an assets acquisition is generally required to liquidate or is treated as if a complete liquidation had taken place. See Bittker & Eustice, supra note 15, ¶ 14.14. An asset acquisition without liquidation is possible under NLD Vpb § 14(2) (definition of an asset acquisition (bedrijfsfusie) for tax purposes) and BEL CIR art. 46 § 1 (contribution of branch or of all assets in exchange for shares).

    The share acquisition is the most common form of corporate reorganization in the Netherlands; see Van Soest, Inkomstenbelasting 470 (1990); its tax requirements are defined in NLD IB § 14b(2). In France the share acquisition is called fusion à l’angkise (!) and is regulated in CGI Annex II § 301C-I, stating that the acquiring company must acquire at least 75 percent of the shares of the acquired company. In the United States the share acquisition is regulated in IRC § 368 (a)(1)(B), requiring a share of at least 80 percent in the acquired company.

    In Switzerland, conversion of a GmbH into an AG is not possible without liquidation. See Company Law in Europe: Switzerland § 22 (Peter Meinhardt ed., 3rd ed. 1981). Law No. 66-537 of July 24, 1966, § 154, reprinted in Code des Sociétés (Dalloz 1996) provides that a company may change its seat from one country to another if the host country has concluded a treaty with France permitting such a change without disturbing the legal personality of the company. It may not be possible under company law to change the seat of a company to another country. See, e.g., Steven Schuit, Business Organizations; Corporations, in Dutch Business Law § 9.10[6] (Schuit, Romyn, and Zevenboom, eds. 1997) (impossible to transfer seat to another country except in extraordinary situations like war). In cases like this, the transfer of seat can be accomplished by forming a new corporation in the target country and merging the existing corporation into the new corporation or by contributing the shares of the existing company to the new company and then liquidating the existing company.

    See, e.g., FRA Code civil § 1844-3 (change from one type of company to another does not result in creation of a new legal person); P. Verrucoli, Italian Company Law 205–207 (association of persons can be converted into capital company and vice versa) (1977). See also Law No. 66-537, supra note 18, §§ 236–238 (providing for change from société anonyme to other forms); id. § 69 (providing for change from société à responsabilité limitée to other forms); Schuit, supra note 18, § 9.10(4] (change in form does not affect continued existence of a corporation).

    The value for which assets are recorded in a company’s accounts does not always coincide with the tax basis of the assets. This depends on the relationship between commercial accounting and tax accounting, which varies from country to country. See supra ch. 16, appendix.

    For a survey of the situation in the European Union, see Commission of the European Communities, Report of the Committee of Independent Experts on Company Taxation 243 (1992) (Onno Ruding, Chairman) [hereinafter Ruding Committee Report].

    See infra sec. C(l).

    In a transaction between unrelated parties, one party can compensate the other party by an adjustment in the purchase price if the latter agrees to bear a greater tax burden. The problem of possible abuse in a transaction between related parties can be addressed through a general rule that gives the tax administration the power to readjust transfer prices between related taxpayers and in some cases (such as tax evasion) even between unrelated taxpayers, so as to reflect the fair market value of the transaction for tax purposes. Such a rule is not specific to reorganizations. See vol. 1, at 53; ch. 18 supra.

    See supra ch. 16, sec. VI(B).

    For example, in the United Kingdom there is a special capital gains tax, which also includes profits on shares held for private investment. See GBR TCGA §§ 2, 21.

    See, for a survey of capital gains tax rates for individual shareholders, Ruding Committee Report, supra note 21, at 273.

    See NLD WIB § 39 (33 percent); BEL CIR § 90/9° (25 percent);FRA CGI § 160 (25 percent); DEU EStG § 17 (25 percent).

    See BEL CIR § 192; NLD Vpb § 13(1) (minimum 5 percent participation required); Van Soest, Inkomstenbelasting 454 (1990).

    See supra ch. 16, sec. V, VI(B).

    See supra ch. 19.

    See supra note 23.

    See supra ch. 17, sec. II(E)(2).

    This rule is very often not explicitly spelled out in the statute, but follows from the general principle that tax characteristics cannot be transferred from one taxpayer to another unless the statute specifically provides for such a transfer. It is stated by negative implication in USA IRC § 381.

    When a credit is recaptured, the tax payable is increased by the amount recaptured. Recapture is known as clawback in the United Kingdom.

    E.g., USA IRC §§ 50(a)(4), 381.

    See infra sec. IV.

    See discussion on tax loss carryovers in the general tax system, supra ch. 16.

    E.g., USA IRC § 382.

    See Michael Saltzman, IRS Practice and Procedure ¶ 17.05 (2d ed. 1991).

    E.g., USA IRC § 6901.

    Often the transaction is accomplished by forming a new corporation in the state where it is desired to move to and then merging the corporation into this new corporation. See supra note 18; Rufus Rhoades & Marshall Langer, 2 Income Taxation of Foreign-related Transactions § 7.02[8] (1996); Notice 94-46, 1994-1 C.B. 356. In some cases, a change in place of incorporation will not be taxable; e.g., Rev. Rul. 87-27, 1987-1 C.B. 134 (liquidation of domestic corporation into a newly formed foreign corporation treated as a change in place of incorporation and hence as a Type ¶ reorganization, which was rax free where the requirements of the regulations under IRC § 367(a) were satisfied).

    See supra note 18.

    See infra ch. 21.

    In the United States, when a C corporation (taxed as an entity) changes its status to that of S corporation (taxed on a flow-through basis), there is no immediate tax, but a tax is imposed on certain built-in gains of the C corporation if the S corporation realizes those gains within 10 years. See IRC § 1374; Bittker & Eustice, supra note 15, ¶ 6.07. Germany now allows a tax-free conversion of a corporation into a partnership. See Endres & Pilny, supra note 7. (This should be seen in the context of Germany having abolished the last remnant of economic double taxation.—L.M.)

    See generally The International Guide to Mergers and Acquisitions (Eric Tomsett et al., eds., IBFD) (loose-leaf 1993–96) (covers most of the OECD countries as well as Argentina, Brazil, Singapore, and South Africa). See the Oct. 13, 1997 issue of Tax Notes International for discussion of rules concerning acquisition of companies in the Netherlands, France, Germany, and the United Kingdom. See also supra note 2. In Thailand, reorganizations are taxable. See THA RC §§ 72–74. The State Tax Administration of the People’s Republic of China has recently issued circulars providing guidance on reorganizations, which provide that certain transactions may be carried out on a tax-free basis. See May Huang et al., China Issues Rules on Tax-Free Corporate Reorganizations, 15 Tax Notes Int’l 543 (Aug. 18, 1997). In the case of Indonesia, Japan, and Korea, the opportunities for tax-free reorganizations seem to be quite limited. See Richard Weisman et al., Structuring Transactions in Asian Countries: Tax Considerations for Cross-Border Mergers and Acquisitions, 15 Tax Notes Int’l 215 (1997); Hugh Ault et al., Comparative Income Taxation 330, 339 (1997). Tax-free reorganizations and corporate divisions are allowed in Israel. See Arye Lapidoth, The Israeli 1993 Income Tax Reform Relating to Mergers and Divisions of Companies, Intertax 202 (1995).

    See BEL CIR art. 211 §§ 1, 2 al. 3°; GBR TCGA § 137 (1). In the United States, this is the result under the case law.

    E.g., Merger Taxation Directive, supra note 6, art. 11.

    An example of independent conditions in the tax code is the type C reorganization in USA IRC § 368 (a)(1)(C): transfer of substantially all the assets of one company to another company solely in exchange for all or part of the voting stock of the company acquiring the assets. This definition does not refer to any rule in company law, since this differs from state to state. See infra note 49. For specific tax conditions for exemption, see NLD Vpb § 14; A.J. Van Soest, Belastingen 511 (Arnhem 1995); FRA CGI Annex II § 301B–301F; Merger Taxation Directive, supra note 6, art. 2.

    See USA IRC § 368(a)(1)(A). Under the U.S. federal system, the states are responsible for the general civil law, including company law. This has perhaps contributed to the flexibility of the federal tax law, as it must accommodate differences in company law among the states, and also explains why in the United States the requirements for a merger to be tax free are found in tax law rather than in company law.

    See Bittker & Eustice, supra note 15, ¶ 14.11; John A. Nelson Co. v. Helvering, 296 U.S. 374 (1935); Helvering v. Minnesota Tea Co., 296 U.S. 378 (1935); Reilly Oil Co. v. C.I.R., 189 F.2d 382 (5th Cir. 1951). USA IRC § 368 (a)(1)(A) defines a “merger” as a tax-free reorganization. Company law determines what a merger is. However, the United States has many different types of company law, because company law is not federal law but state law. In some states, there is even a valid merger when all or substantially all of the assets are transferred from one company to another, regardless of the form of compensation that is paid for a transfer. This implies that when the major part or even all of the assets of a company are transferred for cash there may be a merger under state law. This is unacceptable for tax purposes, because it would lead to a tax-free sale of most of the assets and the shares in the transferor company and lead to a serious breach in the principle of continuity. Therefore, in addition to the reference made to a “merger” in the sense of the company law, there is an additional condition in the case law, only for tax purposes, that the shareholders must continue a substantial interest in the transferee company. See Cortland Specialty Co. v. C.I.R. 60 F.2d 937 (2d Cir. 1932); Commissioner v. Gilmore’s Estate 130 F.2d 791 (3d Cir. 1942); Roebling v. Commissioner, 143 F.2d 810 (3d Cir. 1944).

    See Rev. Rul. 66-224, 1966-2 C.B. 114.

    Becker v. Commissioner, 221 F.2d. 252 (2d Cir. 1955); Bentsen v. Phinney, 199 F. Supp. 363 (S.D. Tex. 1961); Mary Archer Morris Trust, 42 T.C 779 (1964).

    See supra note 48.

    See USA IRC § 368(a)(l)(C).

    Merger Taxation Directive, supra note 6, art. 2.

    Commission of the European Communities, Proposal for a Tenth Directive of the Council based on Article 54(3)(g) of the Treaty Concerning Cross-Border Mergers of Public Limited Companies, COM(84) 727 final (Jan. 8, 1985).

    See Merger Taxation Directive, supra note 6, art. 2; see also FRA CGI Annex II § 30IF. Nominal value is also known in company law as par value.

    See USA IRC § 368(a)(l)(G).

    However, if liabilities exceed the value of assets and only a nominal amount of stock is transferred to the former shareholders, then the continuity of interest requirement might be considered not to be satisfied. See Bittker & Eustice, supra note 15, ¶ 14.14. In such cases, what has occurred in substance is a purchase of the assets by means of an assumption of the liabilities.

    E.g., USA IRC § 368(a)(1)(B) (exchange of stock solely for voting stock). But see Bittker & Eustice, supra note 15, ¶ 14.11 (nonvoting shares are counted in determining continuity of interest in a merger).

    The line cannot always be drawn very neatly. See Forrest Hotel Corporation v. Fly, 112 Supp. 782 (S.D. Miss. 1953).

    U.S. American Potash & Chemical Corporation v. U.S., 399 F.2d 194 (Ct. Cl. 1968); Commissioner v. Gordon, 391 U.S. 83 (1968); Furniss v. Dawson [1984] 2 WLR 226; [1984] AC 474. Similarly, in the Netherlands, tax exemption is subject to the condition that the shares issued by the transferee company in the merger are not sold by the shareholder for three years after the merger, see NLD Vpb § 14(1).

    A typical case in point is Belgium before its tax reform of 1989. Tax-free reorganizations were an all-or-nothing affair, whereby all assets had to be transferred exclusively in exchange for voting stock. However, parties to the reorganization were free to dispose of shares and assets before and after the reorganization, making the restrictions at the time of the reorganization a lot less strict.

    See Rädler, supra note 15, at 564.

    See id. at 565.

    See id. at 568–69.

    Germany allows the transferor company an option to choose between a tax-exempt and a taxable transfer? see UmwStG § 11. This choice will of course be agreed upon between the parties to a reorganization. When the transferor company elects a tax-free reorganization, the conditions are such that the continuity of shareholders and business activity is guaranteed so that the tax liability is only deferred. In the United States, a corporation that purchases the stock of a target company may elect to treat the transaction as a taxable purchase of the assets of the target, followed by the contribution of the assets to a new corporation. See IRC § 338.

    E.g., FRA CGI § 210B (requiring approval for divisions and contributions of part of a corporation’s assets). See Bernard Chesnais & Yann de Givré, France, in 79b Cahiers de droit fiscal international 139, 142–43 (1994).

    See BEL CIR § 45; FRA CGI § 210 A. However, the transferor company can elect taxable treatment for the transaction, in which case a concessional rate of 18 percent applies; see FRA CGI § 210 A-4; USA IRC § 354 (a).

    See supra sec. III.

    E.g., USA IRC §356.

    See GBR TCGA § 139(1) (applies where the transferor “receives no part of the consideration for the transfer”); USA IRC § 361(b).

    This is not to say that the United States has always exhibited great consistency in its approach to the classical system. Up to 1986, corporations could (under the so-called General Utilities doctrine) distribute appreciated property to shareholders without incurring tax on the gain, thereby eliminating economic double taxation on these gains. With such inconsistent treatment in the background, it is easy to understand that the merger rule is not always consistent.—L.M.

    See FRA CGI §§ 92B, 92J (shares listed on the stock exchange), 160 I ter (shares constituting a holding exceeding 25 percent of outstanding capital), 150 A bis (shares in real estate companies); DEU UmwStG § 13; GBR TCGA § 135; USA IRC §§ 354(a), 356.

    See supra note 28.

    USA IRC § 358(a) provides an adjustment of the tax basis when property is received in exchange for consideration other than stock or securities.

    FRA CGI §§ 150 A bis, 160 I ter defer the tax liability until the shares received in exchange are sold.

    See supra sec. IV(C)(1).

    See supra note 28.

    Note, however, the intricate Norwegian “RISK” rules, which allow a step-up of capital gains tax basis for shares with respect to retained, taxed profits, with the purpose of eliminating economic double taxation not just for distributed profits, but for profits the shareholders realize as capital gains.—L.M.

    E.g., BEL CIR §212; USA IRC § 362(b). In France, a distinction is made between depreciable and nondepreciable assets. For nondepreciable assets such as land and securities, there is a single carryover of the old tax basis; see FRA CGI §§ 40, 151 octies. For depreciable assets, the capital gain that has been exempted must be reintegrated in taxable profits over a period of 15 years after the merger; see CGI § 210A(3)(d). The argument has been made that in the context of privatized enterprises in transition economies, it may not make much sense to provide for basis carryover, because the basis may bear no relation to reality. The alternative would be to allow such enterprises a fresh start valuation at market value without requiring recognition of gain. See Kodrzicki & Zolt, supra note 5, at 629–33.

    See supra sec. III.

    E.g., DEU UmwStG §§ 4, 12.

    E.g., USA IRC § 381; Bittker & Eustice, supra note 15, ¶ 16.01.

    France requires a preliminary ruling (agrément préalable) to carry over tax losses in a corporate reorganization; see CGI § 209 II. In Germany, loss carryovers from the company that disappears in a merger are prohibited on the principle that the transferor and the transferee company are two different taxpayers and that losses from one taxpayer cannot be carried over to another taxpayer. Tax practice has applied a self-help method, however, by having the loss company act as the transferee company so that tax losses can be preserved within the entity of the same taxpayer. See Brigitte Knobbe-Keuk, Bilanz-und Unternehmenssteuerrecht 598 (1993).

    Libson Shops v. Koehler, 353 U.S. 382 (1957); Maxwell Hardware Co. v. Commissioner, 343 F.2d. 713 (9th Cir. 1965).

    E.g., DEU KStG § 8(4) (denying tax loss carryovers when more than 75 percent of the shares have been transferred and the acquired company has substantially changed its business). This rule puts severe restrictions on the rule that permits the transferee company to carry forward tax losses in a tax-free reorganization.

    In the Netherlands, there is no tax exemption for an asset acquisition when one of the participating companies has a tax loss carryover (combination of Vpb §§ 14 and 20); see also DEU KStG § 8(4).

    See USA IRC § 382 (1986); see also AUS ITAA (1936) § 80 DA(A)(d); GBR ICTA § 768 (a major change in ownership and a major change in the nature or conduct of a trade).

    See BEL CIR § 206(2).

    See USA IRC § 382.

    See supra sec. III(C); USA IRC § 381.

    See also supra sec. III(C).

    Exemptions from these taxes in reorganizations are discussed in Tomsett et al., supra note 45.

    See vol. 1, at 216–17.

    In contrast to the requirements for tax-free reorganizations under the income tax, here, substantially all the assets means the assets of a business, not all the assets of the transferor (which may have several businesses).

    An example is the treatment of a grantor trust. See infra sec. III(D)(1). Seegenerally David S. Miller, The Tax Nothing, 74 Tax Notes 619 (Feb. 3, 1997) for a discussion of various cases where entities are disregarded and the implications thereof.

    See vol. 1, at 91-92.

    The treatment of an entity may also differ from one tax law to another. For example, a partnership is usually not treated as a separate entity for income tax purposes, but is normally a distinct taxable entity under the value-added tax (see vol. 1, at 175-76) and may also be treated as a taxpayer for other taxes (payroll taxes, property tax, excise taxes). It will generally have an employer identification number and an obligation to withhold PAYE on the same basis as corporate employers. See, e.g., U.S. Treas. Reg. §§ 31.3401(d)-l, 301.6109-1.

    E.g., LSO ITA § 64. In addition to a rule specifying that each owner is taxed on the owner’s share of the income, it may be appropriate to provide for cases where jointly owned property is divided, each owner receiving a portion of the property. In systems where capital gains are taxed, nonrecognition treatment would be appropriate for this kind of transaction.

    For an overview of the taxation of partnerships in different countries, with particular emphasis on international aspects, see Jean-Pierre Le Gall, General Report, in International Tax Problems of Partnerships, 80a Cahiers de droit fiscal international 655 (1995) [hereinafter Cahiers].