Customs Transit

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…

Tax Law

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 […]

Export Subsidy

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 […]

Customs Union

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 […]

Double Taxation

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 […]

Tax Evasion

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 […]

Tax System

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

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)


Export Processing Zone

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 […]

Countervailing Duties

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 […]

International 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 […]

Value Added Tax

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 […]


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 […]

Structural Adjustment Lending

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, […]

Unitary Taxation

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…