'Lack of documentation of economic transactions in developing economies is the main contributing factor of low tax base and low revenue collection,' the reply stated adding that in such jurisdictions withholding taxes
are the main sources to broaden the tax base to generate revenue.
Howe Institute, (11) have shown a strong link between the elimination of withholding taxes
on dividends and interest and increased foreign direct investment.
Another consideration is that in the event of filing Chapter 11, there may be unpaid withholding taxes
to state, federal, or local authorities.
He said he hopes to lower the stock transaction tax when the withholding taxes
on stock-trading capital gains, which were originally planned to be abolished at the end of March, will be extended for another two years.
Nobody believes that withholding taxes
will be repealed.
In fiscal year 2016-17, the share of withholding taxes
in direct tax collection was slightly above 70%.
In a subsequent hearing, the bench had demanded a clarification on whether withholding taxes
were being collected as per law.
The Court of Tax Appeals (CTA) has ordered the Commission on Elections (Comelec) to pay the Bureau of Internal Revenue (BIR) P49-million deficiency expanded withholding taxes
for taxable year 2008.
* Expeditiously negotiate and implement a new provision in the Income Tax Convention with the United States eliminating withholding taxes
on all dividends and interest for payments to both related and unrelated parties.
901(1)(1)'s general rule that denies a foreign tax credit (FTC) for withholding taxes
imposed on an item of income (other than dividends) or gain, when the underlying property generating the income or gain is held for a relatively short period.
In Compaq, the Tax Court considered the economic benefit to be the dividend, net of withholding taxes
. Second, under the business purpose test, the Eighth Circuit distinguished IES's ADR transactions from Compaq, noting that IES met twice about the transactions and consulted outside accountants and securities counsel for reassurance on the legality of the transactions and their tax consequences.