An examination of the NAFTA impact on U.S. taxation related to international transactions.
Written in 2002; 1,566 words; 7 sources; MLA; $ 51.95
Paper Summary:
This paper evaluates impact of the North American Free Trade Agreement (NAFTA) on United States taxation and in particular to international transactions. It looks at how the NAFTA is not really a tax treaty and how taxation is not addressed in the treaty. The signatory nations to the NAFTA renegotiated bilateral tax treaties subsequent to the implementation of the treaty to address taxation issues that were affected by the provisions of the treaty. There is an emphasis on the issues that are related to taxation on the basis of source income and to the amelioration of double taxation.
From the Paper:
"The Organization for Economic Cooperation and Development (OECD) observed that globalization, the deregulation of financial markets, and financial innovation have led to major changes in the volume, composition and direction of international capital flows, which places increasing demands on taxation systems. "Taxes are an important consideration in foreign direct investment (FDI) and in cross-border portfolio investment decisions of financial and non-financial corporations and individuals. Tax-driven investment and savings decisions raise concerns about economic efficiency and equity, as well as problems of evasion and avoidance" (Organization for Economic Cooperation and Development, 1999, p. 21)."
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