unitary tax

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 law also eased the rates of estate and donor's taxes by imposing unitary tax rate of 6 percent.
Finance Undersecretary Karl Chua explained that they were just waiting for the results of a study being conducted on the effects of the unitary tax, which just came into effect this year.
The recent Base Erosion and Profit Shifting (BEPS) project of the G20 and the Organisation for Economic Co-operation and Development has summarily rejected the idea of unitary tax solutions.
While the potential combination methods are similar to those of other jurisdictions imposing unitary tax filings, the concept of capturing income from tax havens is a concept that has only been employed in a handful of jurisdictions (Arkansas, District of Columbia, Montana, Oregon, and West Virginia).
The only viable reason that I can think of is that PMFTC wants Congress to amend the acceleration of the unitary tax system that they themselves lobbied against by making competition as a convenient scapegoat, using information from polluted sources instead of relying on official government data, not only to deceive Congress but also its stakeholders and other investors," Apostol said.
While California began routinely applying the unitary tax in the 1970s, other states have repealed or refused to enact unitary tax legislation in the past.
Estimates of How the Unitary Tax Affects Business Investment.
There is no inventory tax, no worldwide unitary tax and no business and occupations tax.
Supreme Court's very recent and somewhat surprising upholding of California's unitary tax (in the Barclay's Bank case).
And Congress, despite pressure from various administrations, had refused to outlaw the unitary tax, she noted.
COT is continuing its involvement in the unitary tax issue by pressuring the Clinton administration to resolve the issues spotlighted by Barclays Bank's lawsuit against the California Franchise Tax Board for its attempts to retroactively tax the company's U.