A Comparative Analysis of the Corporate Tax Residency:A Case Study Between India The UK and Tanzania

Nyamwero, Nyamwero Bwire and Hashimy, Sayed Qudrat (2024) A Comparative Analysis of the Corporate Tax Residency:A Case Study Between India The UK and Tanzania. Annual International Journal of Vaikunta Baliga College of Law, 1 (1). pp. 41-42. ISSN 2583-3588

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Abstract

While most advanced countries use the place of effective management, sometimes along with the place of incorporation, as the criterion for defining the residence of a company, the United States uses the place of incorporation as the sole criterion. This formalistic and objective criterion provides taxpayers with predictability.However, in interacting with different criteria in other countries this criterion also permits manipulation, including the creation of companies that technically are not resident anywhere. Using the place of effective management (POEM) criterion can also lead to dual residenceas opposed to no residence which was the only problem that was considered when the rules of international taxation were originally created. This was then to be dealt with under bilateral treaties and tiebreaking rules, with the OECD Model Treaty for example, expecting that dual residence issues would be solved by means of mutual agreement procedures on a case- by- case basis. It can be helpful, if not dispositive, for tax authorities to provide guidance on how the place of effective management criterion will apply.The aim of this paper is to analyses the tests that are used to determine corporate tax residency and whether they succeed in giving clarity and predictability to taxpayer and business. The other part of this paper aimed at examines how this test may end up being used as a loophole for tax avoidance.

Item Type: Article
Uncontrolled Keywords: Corporate, Tax, Residency, Tax Law, International Taxation OECD Tax
Subjects: L LAW > LAW
Divisions: Department of > Law
Depositing User: Dr Raju C
Date Deposited: 23 Jan 2023 06:30
Last Modified: 07 Aug 2024 09:37
URI: http://eprints.uni-mysore.ac.in/id/eprint/17431

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