Current Rules To The Deciding Taxation Of International Companies Essay

Current Rules To The Deciding Taxation Of International Companies - Essay Example In addition, the same rules also defer or exempt the active income of businesses. Consequently, there has been a loss in force with regard to a distinction between those nations with a global tax jurisdiction, and those whose taxation system is territory-oriented (Avi-Yonah 2007). A network of bilateral tax treaty holds claims about the existence of international tax. The treaty borrows heavily from the U.N. model, as well as that of the Organization for Economic Co-operation and Development (OECD). For a majority of the countries, these treaties enjoy an elevated status relative to the domestic laws. As such, the domestic tax jurisdiction is often constrained. This implies that where international tax matters are concerned, national are usually bound by such treaties to act in specific ways. For example, a country could be constrained from not taxing a foreign trader who does not have a permanent residency. A majority of the countries today tax their residents in line with their tax legislation, and as they would be taxed had they been in their resident country, the sources of the taxable income not withstanding. Similarly, non-residents of a country are usually taxed on that portion of the income that the government of the country feels that it is a source of the country (Gowthorpe et al 1998). The two practices are commonly integrated internationally, but the problem usually arises when a resident of a country has his/her worldwide income taxed, including that part of the income which could be a source from another country. As a result, a case of double taxation usually results. With regard to the international law, a case of judicial double taxation is often not deemed illegal. Nevertheless, such a practice usually poses a danger as it negatively affects the movements of persons, goods, and capital among the different countries (Terra & Wattel 2005).In a bid to try and avoid such a scenario from occurring, a majority of the countries have thus far entered into double taxation bilateral agreements. This move is aimed at helping in the clarification of those contracting countries that legally have a right to double taxation. This means that the other countries will then have to waive their income taxation rights. Double taxation agreements, UN and the OECD model conventions on taxation The preparations of bilateral agreements usually employ the UN and OECD models of taxation. The OECD model has a focus towards the developed countries, while the UN model hopes to have an impact on the developing countries. The two model conventions have a lot of similarities, with the only variation being in terms of how the models adapt to the various economic environments (OECD 2001). Nevertheless, the UN model has not had a significant impact on a majority of the international tax treaties. At the same time, none of the two models forms any part of the international customary law. This is because the two models fail to meet opinion rules, and as such, they cannot be accepted internationally. However, the two models still have a profound interpretive influence in times of taxing rights conflicts, as per the conferment of the double taxation agreements (Avi-Yonah 2007). Perhaps article 17 of taxation convention model of the OECD would

Grand Bazaar Essay Example | Topics and Well Written Essays - 1750 words

Grand Bazaar - Essay Example Much desired because of its favorable location, the city has often been a reason for military tension. It has also changed several names, such as, for instance, Byzantium, Nova Roma and Constantinople. Another interesting fact is that it has been a capital of two powerful empires - the Byzantine and the Ottoman. The old wooden Grand Bazaar was built by Sultan Mehmet II, who conquered Constantinople, the capital of Byzantine Empire in 1453, and also named the city Istanbul. The Bazaar was getting bigger quickly. Presently it covers 30 hectares, and comprises about 4000 shops, forming a real labyrinth with its numerous arched passages. There are also banks, mosques, police stations, fountains, and restaurants. Twenty two gates lead into the Bazaar out of different streets (Historical places of Istanbul). Mark Twain depicted the place as follows: "We went to the grand Bazaar in Stamboul, of course, and I shall not describe it further than to say it is a monstrous hive of little shops--thousands, I should say--all under one roof, and cut up into innumerable little blocks by narrow streets which are arched overhead". For a tourist it must seem very difficult not to get lost, however, there is no need to panic: the street signs and tourist information signs are everywhere. The Bazaar also plays a role of unofficial financial centre: different currencies are exchanged by most shopkeepers. At Grand Bazaar one f... The vendors try to attract customers by telling history of the buildings construction, local legends, suggesting the most interesting places to visit and to take pictures of. Some European tourist might feel tired with the constant invitations. Travel guides claim it is better to say thank you and firmly make through crowd ahead, in case you are not interested. If one tries the free drinks and talks to the vendors it does not mean, though, he has to buy the goods. Bargaining is expected and often it is possible to lower the price about 20%. It is a good idea to learn the local price for the items you wish to buy, for once it is discovered you do not have a clue, you are likely to pay the so called tourist price. Grand Bazaar seems all sparkling and glittering. Jewelry stalls with gold and silver, as well as displays of colourful lamps and lanterns make it like this. Flickr and other servers are full of the bright images of such stalls, uploaded by the thrilled travellers. It is believed that Grand Bazaar offers the biggest variety of jewelry in the world. Olivia Wells in her "Secrets of the Grand Bazaar" names best jewelry shops. She describes Kafkas as the most luxurious one, where it is possible to purchase true treasures without being afraid of swindle, and where the security and anonymity is guaranteed: "From the outside, Kafkas looks much like the hundred or so other jewelry stores lining the street, though I'm keenly aware of the suited men (alertly) loitering outside the closed door as Serkan pulls out a necklace of Kafkas's own design: forty-one carats of rose-cut diamonds scattered around the neck of its black velvet display form". She also finds the price attractive, claiming it to be the third of