The Impact of Taxation on Global Trade Flashcards
What is the TFEU
the EU treaty of functioning, memberstates are prohibited from creating laws that prohibits free movement between nations and declines aid to memberstates
What is CBAM
The EU carbon border adjustment mechanism
What does tax soverignty mean, are EU countries?
Each country holds tax jurisdiction and autonomy, allowing them to enact tax laws, issue tax rulings, and shape tax policies independently and EU countries are not fully as they have given up some of their soverignty
What is tax competence
The authority to collect taxes, is generally teritorially limited f.ex to a lands ting in Sweden.
How can taxation be a problem for multinational companies
If a country consideres income the company makes abroad to be native they may tax if this happens with multiple countries it leads to double taxation or worse.
In what areas does the EU have exclusive competence
(a) customs union;
(b) the establishing of the competition rules necessary for the functioning of the internal market;
(c) monetary policy for the Member States whose currency is the euro;
(d) the conservation of marine biological resources under the common fisheries policy;
(e) common commercial policy.
(f) international agreements which effects the whole block
Name some areas where the EU shares competence with member states
(a) internal market;
(b) social policy, for the aspects defined in this Treaty;
(c) economic, social and territorial cohesion;
(d) agriculture and fisheries, excluding the conservation of marine biological resources;
(e) environment;
(f) consumer protection;
(g) transport;
(h) trans-European networks;
(i) energy;
(j) area of freedom, security and justice;
(k) common safety concerns in public health matters, for the aspects defined in this Treaty.
Is it allowed in the TFEU to direct tax legislation to be protectionist in a way that hampers competition
No although there are some exceptions f.ex for beer and wine
What is an EU regulation and directive
An EU regulation is when the EU implements laws into member states national legual code, directive is when a goal is set and national laws are freely made to reach the common goal
What is the GLoBE rules
Minimal effective taxation of multinational companies, it sets a floor on how little tax they are allowed to pay through the income inclusion rule IRR and an undertaxed profit rule UTPR
when are the Globe rules implemented
When the tax rate of a multinational company in a region is under 15%
how do you calculate top up tax rate
Top-up tax percentage = minimum tax rate - effective tax rate
Who are the targets of the globe tax rules
Multinational companies, large domestic conglomerates with at least 750 milliion € in revenue in 2 of 4 recent years and large standalone companies in the EU and OECD countries
When does the EU carbon border apply
This Regulation should apply to goods
imported into the customs territory of the Union from third
countries, except where their production has already
been subject to the EU ETS through its application to third
countries or territories or to a carbon pricing system that
is fully linked with the EU ETS
The carbon border is about the EUs relationship with memberstates
False
