Search Results

You are looking at 1 - 10 of 56 items for :

  • "export exemption" x
Clear All
Mr. Christophe J Waerzeggers and Mr. Cory Hillier
Tax avoidance continues to attract attention globally with strong support for tax law reform at all levels. This Tax Law IMF Technical Note focuses on some of the key design and drafting considerations of one specific legal instrument (being, a statutory general anti-avoidance rule (GAAR)) which is often considered by authorities to combat unacceptable tax avoidance practices. A GAAR is typically designed to strike down those otherwise lawful practices that are found to be carried out in a manner which undermines the intention of the tax law such as where a taxpayer has misused or abused that law. However, the objective of combating unacceptable tax avoidance can itself make the legal design of a GAAR complex. This is simply because the phrase “tax avoidance” means different things to different people. Whatever the form of a GAAR, it should give effect to a policy that seeks to strike down blatant, artificial or contrived arrangements which are tax driven. However, the GAAR should be designed and applied so as not to inhibit or impede ordinary commercial transactions. This Tax Law IMF Technical Note discusses and explores how drawing a line between those arrangements which should be caught by the GAAR is a matter of degree and can be delicate.
Mr. Christophe J Waerzeggers and Mr. Cory Hillier

sheltered from tax by export exemption Transaction 2: Subsequent retail sale Retail price $80 $80 (sale price to local retail customers) Cost ($79) ($79) (purchase price paid by Company A to Company B and vice versa) Gain $1 (economic) $1 (taxable) $1 (economic) $1 (taxable) Economic gain of $1 is taxable as imported products are sold in domestic market Total gain (under transaction 1 and 2) $30 (economic) $1 (taxable) $30 (economic) $1 (taxable) Counterfactual If products only sold in domestic market

International Monetary Fund

collected at the same time as customs duty. Exemptions apply to goods exempted from tax or which have reduced tax rates under appropriate tax laws or international agreements; persons engaged in informal production activity whose daily sales income does not exceed Br 25; and produced goods for exports. Exemptions can also be given by the directives of the Minister. The following items are exempted: Food: (bread and ‘injera’); Fertilizer, Aviation fuel and lubricants, • kerosene; Containers, packing and wrapping materials; Equipment and requisites for aircraft, railway

International Monetary Fund

(Direitos de Exportação ) (Decree 17 of June 19, 1991 and Decree 41 of December 31, 1993) Levied on all exports. Exemptions: (a) baggage, including automobiles imported without drawing on the foreign exchange fund: (b) goods purchased in duty-free shops; (c) merchandise for exhibitions; and (d) other items from Schedule IX of the Tariff. Deductions from the customs value: (a) freight and insurance costs; (b) customs duties and fees; and (c) shipping costs, or a percentage determined by the Minister of Finance. Exports are exempted from customs duties until December 31

International Monetary Fund

program and defense imports, subject to existing international agreements. One percent. The Minister of Finance may authorize exemptions or rate reductions. 3.2 Taxes on exports 3.2.1 Export duties (Direitos de Exportação) (Decree 42 of October 15, 1996). Levied on all exports. Exemptions: (a) baggage, including automobiles imported without drawing on the foreign exchange fund; (b) goods purchased in duty-free shops; (c) merchandise for exhibitions; and (d) other items from Schedule IX of the tariff. Deductions from the customs value: (a

Michèle Guerard

Western European countries. Services are excluded from its scope, along with a number of special sectors, such as construction and electric power. The ICM also until now has made a more limited application of the investment and export exemptions that are characteristic of the European levies. The rate of tax, on the other hand, is the same for all commodities, and exemptions are few; this has kept down the level of administrative complexity. On the whole, the tax follows a relatively simple design, ignoring some of the technical refinements that have been incorporated

International Monetary Fund

. 2 percent of the total of import duties, including VAT, excises, and compensatory duty, with a minimum of D 5 per declared item. 6.2 Export duties 6.2.1 Service fee on exports (Redevances sur prestations douanières à l’exportation). Flat fiscal duty on selected exports. Exemptions: numerous. 1.5 percent of the export value (f.o.b.). Budget Law of 1998 provides a list of taxable exports. Other taxes 7.3.1. Registration duties (Droites d’enregistrement) Duties on registration of establishment, transformation

Mr. James Daniel

). Because of its efficiency (in not affecting business use of inputs) and revenue security (in collecting revenue at all stages in the production chain, not just at final sale), the ideal instrument to achieve this goal is usually a VAT levied at a single positive rate—key elements being crediting provisions to remove businesses’ input purchases from tax and zero rating 22 of exports. Exemptions should be avoided as far as possible, since they reduce the efficiency of the VAT by causing it to “cascade” through the chain of production ( Harrison and Krelove, 2005 ). Zero