Friday, October 19, 2012
- Susan Morse (UC-Hastings), Startup, Ltd.: Tax Planning and Initial Incorporation, 13 Fla. Tax Rev. ___ (2013): "Do U.S.-headquartered startup corporations consider taxes when they decide where to organize? They generally organize as U.S. corporations even if they have global ambitions. This Article argues that risk and uncertainty aversion related to possible future tax policy change may help explain U.S.-headquartered startups’ decisions to avoid non-U.S. incorporation, especially tax haven incorporation. Risk and uncertainty aversion adds to existing rational choice and path dependence theories that frame analysis of these incorporation decisions."
- Luis Eduardo Schoueri (Sao Paulo University Law School), Trends and Challenges of the International Tax Law in the Dawn of the 21st Century and The Non-Regression Principle as a New Approach Towards Tax Treaty Termination
- Willard Taylor (Sullivan & Cromwell, New York), Suppose FIRPTA Was Repealed?: "This article argues, as others have before, that the Foreign Investment in Real Property Tax Act of 1980 (or FIRPTA”), or at least the provisions of FIRPTA relating to “United States real property holding corporations”, should be repealed. Their enactment in 1980 was misguided and in any event changes in the Internal Revenue Code since then have made the provisions obsolete. But if FIRPTA is repealed, in whole or in part, the article argues that the lack of parity between foreign investment in real property that is made directly or through a partnership, on the one hand, and foreign investment vestments in a real estate investment trust (or a regulated investment company that invests in shares of real estate investment trusts) should be dealt with. Otherwise, repeal will exacerbate existing distortions (which were already pushed further by FIRPTA) resulting from the choice of the entity used to make an investment in US real property. The article also suggests that repeal of FIRPTA would provide an opportunity to look at the taxation of foreign investment in the U.S. more broadly and in particular the rules that tax income from U.S. real property. The article concludes by arguing against legislation that would keep the FIRPTA rules and simply expand provisions of present law that favor foreign investment through real estate investment trusts, such as Real Estate Jobs and Investment Act of 2011."