International Taxation Introduction

These flashcards cover key terms and definitions from the International Taxation lecture to aid in exam preparation.

Earnings Per Share (EPS)

A financial metric indicating the portion of a company's profit allocated to each outstanding share of common stock.

Double Taxation

The taxation of the same income or financial transaction in more than one jurisdiction.

International Tax Arbitrage

The practice of shifting income and investments to jurisdictions with lower tax rates.

OECD Model Convention

A model framework by the Organisation for Economic Co-operation and Development for resolving issues related to international taxation.

Tax Havens

Countries or jurisdictions with very low or no tax rates that attract foreign investments.

Unlimited Taxation

A tax system where a country taxes its residents on their worldwide income regardless of where it is earned.

Limited Taxation

A tax system where a country taxes income based only on its source or origin.

Tax Harmonization

The process of aligning tax policies and rates across different jurisdictions to reduce disparities.

Exemption Method

A method used to avoid double taxation whereby income taxed in one jurisdiction is exempt in the resident jurisdiction.

Credit Method

A method used to avoid double taxation where a taxpayer receives a credit for taxes paid to a foreign jurisdiction.

Statutory Sources of International Taxation

Legal frameworks including national laws, international treaties, and European laws that govern international taxation.

Permanent Establishment

A fixed place of business through which an enterprise conducts its business activities in another jurisdiction.

Subsidiarity Principle

A principle in the European Union stating that action should be taken at the local level, rather than by higher authorities.

Cross-Border Economic Activity

Business operations and transactions that occur between entities in different countries.

Corporate Tax Planning

Strategies employed by corporations to minimize their tax liabilities.

ECJ Case Law

Legal decisions made by the European Court of Justice that impact regulations and directives within the EU.

Tax Rate

The percentage at which an individual or corporation is taxed.