The fiscal choices reviewed in Session 1 may prove pivotal for business, particularly based multinational companies. A panel of tax experts addresses how the fiscal debate may lead to tax reform. What is the role of business taxation? What policies should be considered (revenue needs, distributional neutrality, economic efficiency, competitiveness of the firm)? What are the pros and cons of an indirect tax on goods and services?

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Should the corporate tax rate be reduced? Should the base be broadened? Should business income be taxed only once? Should the tax law be neutral on debt versus equity? Should the focus of reform be on timing provisions such as depreciation and expensing or permanent items? A panel of academics and executives explore these options.

 

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Should the tax foreign-source business income? If so, how? Should multinationals always pay the rate on foreign source income, or should the rate be based on the jurisdiction of the source of the income? The panel, drawn from academia, government and the corporate sector, discuss pros and cons of worldwide taxation, territorial taxation, and formulary apportionment. What are the consequences to the tax treaty system and competent authority practice? How would modern business models used by multinationals in mature and fast-growing foreign markets be affected under each regime for taxation of foreign source income?

 

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A panel representing taxing authorities from other developing countries and multinational corporations discuss approaches to taxing the foreign income of multinational groups from the parent country’s perspective; the merits of the different systems; the need for coordination of overlapping systems; and international trends. The discussion focuses on internal laws and treaty policies.

 

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The panel will review the implications of the conclusions of earlier sessions on the fiscal picture and the possibilities of tax reform. 

• Merits of a corporate rate reduction as a response to developments in the rest of the world

• Possibilities of reforming taxation of foreign source income itself

• Winners and losers: potential effects on multinationals0

 

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The corporate tax officer can aid the formulation of sound policy. The session has three parts:

• Discussion among tax directors about their function in the tax policy process

• Reflections among current and former government officials on the role of companies in tax policy

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• Roundtable review of significant tax changes in the context of congressional deliberations

 

 

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