Economics 2162A/B Lecture Notes - Lecture 13: Withholding Tax, Passive Income, Indirect Tax
2 May 2016
School
Department
Course
Professor
Document Summary
A tax scheme is tax neutral if it meets three criteria ( minimizes tax distortions) The tax scheme does not incentivize citizens to move their money abroad. Taxable income is taxed in the same manner by the tax payer"s national tax authorities regardless of where in the world it is earned. Canada taxes all corps on in-canada income, foreign income-source corporate income is not subject to additional tax in canada. Cad companies making profit in the usa only pay us taxes. The tax burden on an mnc subsidiary should be the same regardless of where in the world the mnc incorporated. (pay same canadian tax if the. Mnc can affect the timing of the tax liability ex. tax in 1 country is 15% should be 15% in the other country. This cuts down arbitrage fro companies to go to another country for tax reasons and morally right. An income tax is a tax on personal and corporate income.
