unitary tax

(redirected from Unitary Taxes)

Unitary Tax

A corporate tax on a corporation's global income. Some countries levy unitary taxes on corporations operating in their borders in order to prevent them from avoiding taxes by transferring income to another country with a low or no corporate tax. See also: Transfer pricing mechanisms, Aggressive accounting.

unitary tax

A state corporate income tax on worldwide income. Although they are unpopular with corporations, unitary taxes are instituted by governments to foil firms that use creative accounting techniques to transfer their income to states or countries with low income-tax rates.
References in periodicals archive ?
The idea was sketched out at length in a 2004 report by UN bureaucrat Andrew Mold entitled "A proposal for unitary taxes on the profits of transnational corporations.