The condition of merchandise that is transiting the customs territory of a nation without having been released from customs jurisdiction. Goods in customs transit are processed under an in transit entry at the time they enter the United States; the in transit, or I.T., entry is effected by filing wi…
Other Popular Tax Definitions in the World Legal Encyclopedia Adjusted Gross Income (sometimes, including Tax Law) Ad Valorem Tax (sometimes, including Tax Law) Alternative Minimum Tax (sometimes, including Tax Law) Big Four (audit firms) (sometimes, including Tax Law) Black Market […]
Summary of Export Subsidy
A direct payment, tax relief, or other incentive provided by a government to encourage export sales. The use of such devices is apt to be regarded as undesirable by the importing nation and may result in the imposition of Countervailing Duties (read this legal term […]
Summary of Customs Union
An arrangement among participating countries whereby tariffs are eliminated or virtually eliminated on products moving between members, and a common external tariff (read this and related legal terms for further details) is adopted to provide uniform treatment to […]
Summary of Double Taxation
The condition that arises when a multinational firm is taxed on overseas income in both the source country and the country of the corporation's domicile. This problem arises because nations use varying systems of taxation. Recognizing that double taxation is […]
A mechanism of the Common Agricultural policy (read this and related legal terms for further details) of the European Economic Community designed to prevent disruptive import competition for certain vegetables, fruits, f…
Tax evasion is when someone has deliberately misled us about their activities to reduce their tax liability, or have not paid tax that is due. tax evasion is escaping payment by illegal means. This is obviously unlawful and is usually a criminal offence Tax evasion is when a person or a […]
Summary of Forced Tax System A practice applied in some countries (most notably in Europe) in which corporate income taxes are computed by a governmental agency. Unlike the American system, under which the firm prepares its own return and computes its tax liability (subject to subsequent […]
Flag Of Convenience Summary of Flag Of Convenience
Registration of a vessel in a country other than that of the ship's owners, because the registering nation affords the owners tax or other benefits not available in the home country.
(Main Author: William J. Miller)
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Summary of Export Processing Zone
A special type of Foreign Trade Zone (read this and related legal terms for further details) within which certain exemptions from duties, taxes, and regulations are granted as an inducement to export-oriented manufacturing. Customarily a manufacturer within […]
Summary of Countervailing Duties
Special duties, over and above ordinary duties, imposed upon imported merchandise to counteract the economic advantage provided to the foreign supplier by his government in the form of export subsidies. The object of countervailing duties is to protect […]
Summary of Ad Valorem
Literally, according to value. Any charge, tax, or duty that is applied as a percentage of value.
(Main Author: William J. Miller)
Description of Ad Valorem Resources See Also Taxation
Jurisdiction and Impact of National Treatment This section provides an overview of jurisdiction and impact of national treatment within the legal context of Tax Law as an Issue of International Economic Law in international economic law (Main Regulatory Areas). International Taxation in […]
This section provides an overview of national sovereignty and taxation within the legal context of Tax Law as an Issue of International Economic Law in international economic law (Main Regulatory Areas). Resources Further Reading Wolfgang Schön, "National Sovereignty and Taxation," […]
Summary of Tax Incidence
The place where a tax finally comes to rest. For example, a value added tax is passed through the marketing process to the final purchaser.
(Main Author: William J. Miller)
Literature Review on Tax Incidence In the Encyclopedia of Public Administration […]
Summary of Value Added Tax
A tax imposed upon the value added to a product at each stage of the production process. The tax is applicable to all goods, from primary to consumer products. Each processor in the chain of production pays the tax in the purchase price of the goods, applying the […]
International Tax Documents Model Tax Treaties, etc. OECD Model Tax Convention 2014 List of OECD Member Countries, and of Non-member … Read more
Tradable Permits one alternative to a pollution tax is a system of tradable pollution permits. In the international negotiations over … Read more
Summary of Nexus
The relationship, for tax purposes, between an individual or firm and the jurisdiction in which they conduct their activities. For example, the sale of goods from a warehouse in Denver may constitute a nexus under which an out-of-state firm becomes subject to Colorado […]
The Importance of Tax in International Economic Law This section provides an overview of the importance of tax in international economic law within the legal context of Tax Law as an Issue of International Economic Law in international economic law (Main Regulatory Areas).
A tax imposed by governmental authority on goods imported. The amount of the duty imposed on any given article is prescribed in the nation's […]
A legal jurisdiction that levies no, or very low, taxes on the income of firms organized under its laws or operating within its borders. Often the exemption is limited to firms organized in, but not operating in, the country….
Taxes, also commonly known as internal revenue taxes, imposed by the United States on certain classes of manufactures and services and on the performance of some transactions. Unlike customs duties, which are applied to imports only, excise taxes are applied equally to imports and domestic […]
World Bank program designed to assist developing nations with balance of payments problems resulting from correctable internal economic patterns. The program provides hard currency loans conditional upon agreement by the beneficiary country to undertake certain specified corrective measures, […]
An additional tax that may be imposed upon imports of pork, poultry, or eggs into the European Economic Community when the purchase price of such items falls below the Gate Price ("https://lawin.org/list-of-international-trade-law-terms/">read this and related legal terms for […]
Any duty that is expressed as a percentage of the value of the imported merchandise. Most customs duties, particularly in the developed nations, are ad valorem duties….
A refund or rebate of indirect taxes on merchandise, such as sales or value added taxes, when the goods are exported. Such rebates are authorized under the General Agreement on Tariffs and Trade ("https://lawin.org/General-Agreement-on-Tariffs-and-Trade/">read about the GATT […]
An economic grant provided by a governmental authority to a domestic manufacturer, grower, or producer to increase industrial activity or stimulate output of desired products. Economic incentives may come in the form of direct payments, tax relief, low-interest financing, wage subsidies, or in […]
A special import levy imposed by the European Economic Community upon certain agricultural imports when the entry price of such products falls below a reference, or minimum target, price and the import is priced so as to reflect an export subsidy. Compensatory taxes are institutionalized in the […]
A Dictionary of Taxation Dictionary Details Title: A dictionary of taxation. Author: James, Simon, 1952- Edition: 2nd ed. Published: Cheltenham … Read more
A feature of U.S. customs law that permits an American exporter to recover duties paid on foreign components or raw materials later fabricated into American products and exported. Upon exportation of the manufactured article a recovery or drawback, equal to 99 percent of the duties paid on the […]
A tax imposed on exports. This mechanism serves as a source of government revenue and is imposed by some countries on a limited number of products. Export duties are expressly forbidden by the U.S. Constitution….
Whistleblower Programs in the United States The SEC's whistleblower program went into effect on July 21, 2010, when the President signed into law the "Dodd-Frank Wall Street Reform and Consumer Protection Act." The same law also established a whistleblower incentive program at […]
Tax Refund Tax refund is the amount which the national tax agency or department gives back to a taxpayer who … Read more
A tax haven country that levies no taxes (or virtually no taxes) on income. Examples of such jurisdictions are the Bahamas, Cayman Islands, and Saint Vincent….
A domestic U.S. corporation which was entitled to certain tax advantages under Sections 921-22 of the Internal Revenue Code. To qualify, a U.S.- chartered corporation must (1) derive at least 95 percent of its gross income for the three-year period immediately preceding the taxable year (or througho…
A form of corporate taxation adopted by some U.S. states whereby state income tax is assessed on a pro rata portion of the company's worldwide profits, rather than on locally earned profits only. Unitary taxation emerged in the United States in 1926; at that time it was applied to interstate rai…
A duty or tax imposed by a nation on merchandise crossing its territory en route from one country to another. Transit tariffs have been abolished by all major nations but are still imposed by some developing nations as a source of revenue….
A Federal tax imposed upon commercial vessels entering the territory of the United States. See light money and tonnage TAXES….
The remission, reduction, or deferral of certain taxes offered to foreign businesses as an inducement to invest locally….
The French translation of value added tax (read this and related legal terms for further details)….
A period of time (usually several years) during which an enterprise is exempt from some or all taxes. This device is often used in conjunction with economic development programs as an inducement to attract industry….
A provision of the Internal Revenue Code (Sections 951-64) that imposes U.S. income taxes on the undistributed earnings of "controlled foreign corporations." Subpart F was incorporated into the Code by the Revenue Act of 1962; prior to that time, earnings by foreign subsidiaries of U.S. fi…
A pier where goods may be stored temporarily, exempt from taxes or duties, while awaiting transport to another destination or clearance through customs….
A tax imposed upon certain goods to discourage consumption….
A "paper" company, usually operated without employees. Normally an attorney or other local agent or management company performs the legal duties of the company on behalf of the stockholders. Shell companies often operate in tax-free or low- tax jurisdictions such as Bermuda, Liechtenstein,…
A component of the Office of the United States Trade Representative that investigates allegations of unfair trade practices on the part of foreign governments, practices that impede the foreign commerce of the United States. These practices fall under the broad category of nontariff barriers and inc…