Management and Organizational Studies 4312A/B Study Guide - Final Guide: Withholding Tax, Passive Income, Indirect Tax
3 Dec 2017
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Answer: there are two basic objectives of taxation that are necessary to discuss to help frame our thinking about the international tax environment: tax neutrality and tax equity. Tax neutrality has its foundations in the principles of economic efficiency and equity. Capital-export neutrality is the criterion that an ideal tax should be effective in raising revenue for the government and not have any negative effects on the economic decision making process of the taxpayer. That is, regardless of where in the world taxable income is earned it is taxed in the same manner by the taxpayer"s national tax authority. In theory, national tax neutrality is a commendable objective, as it is based on the principle of equality. Tax equity is the principle that all similarly situated taxpayers should participate in the cost of operating the government according to the same rules. This means that regardless in which country an affiliate of a.
