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 ?
Consider, for example, the Grace Commission that in the early 1980s recommended many legislative changes to curb "waste, fraud, and abuse" or the Secretary of the Treasury's "working group" on the worldwide unitary tax issues.
23, 1966), the California Board of Equalization appeared to express a position rejecting the concept of unitary tax jurisdiction over entities.
While California began routinely applying the unitary tax in the 1970s, other states have repealed or refused to enact unitary tax legislation in the past.
He has 30 years of governmental practice in the state of Florida with numerous legislative representations involving Fortune 500 companies, including repeal of the Florida Unitary Tax, Petroleum Divestiture, complex tax legislation, and environmental Lake Belt rock mining issues.
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.
companies if the California unitary tax problem is not resolved by the end of the year.
Under the unitary tax method, taxes are determined by a percentage of a company's worldwide profits.
Amending the unitary tax demonstrates to the international business community that the legislature is willing to work cooperatively with the administration to reduce disincentives for Alaskan investments.
excludes the effect of the adoption of a unitary tax in the District of Columbia.
For unitary tax purposes the nexus standard is the same as for separate entities.