Docstoc

Chapter 12 – International Taxation and Transfer Pricing

Document Sample
Chapter 12 – International Taxation and Transfer Pricing Powered By Docstoc
					Chapter 12 – International Taxation and Transfer Pricing Pages 475-476 – Exhibit 12-2 Corporate income tax rates continue to fall, with Europe leading the way. For example, tax cuts have been enacted in France, Germany, and the Netherlands. The Irish government has promised to reach a rate of 12.5 percent by 2003; it is now 16 percent. The Mexican government also recently announced plans to cut the corporate tax rate from 35 percent to 32 percent over the next three years. For details of the latest corporate income tax rates around the world, refer to www.us.kpmg.com/microsite/Global_Tax/CTR_Survey/CorporateTaxRateSurvey2002.P DF. Pages 487-488 – Foreign Sales Corporations In August 2001, the World Trade Organization ruled against the United States’ Foreign Sales Corporation Replacement Act, saying that its tax breaks for exports are illegal and anticompetitive. In January 2002, the WTO appeals panel confirmed this ruling by rejecting the United States’ appeal. The United States must now either withdraw the FSC rules or face EU sanctions up to $4 billion on U.S. goods (The EU brought the original complaint on FSCs to the WTO.) The WTO web site (www.wto.org) has a history of this case.


				
DOCUMENT INFO