The analysis of the corporate income tax relief for capital gains and its recording in financial accounting is based on the systemic review of the Corporate income tax law, Business accounting standards and other tax and financial accounting legislation including also Tax dispute settlement institutions case-law and scientific literature. With reference to this analysis, there is defined what terms are necessary for using this tax relief and the content of these terms. The article diclose that application of these terms must be based on content of legal relations and should not be only formal. An accomplished analysis indicates that corporate income tax system of Republic of Lithuania should allow entities to transfer shares of subsidiary companies and subsequently these funds pay in dividends for shareholders which are natural persons without paying corporate income tax because then mentioned tax relief could succeed to encourage investment and attract foreign capital. What is more, the analysis of recording the corporate income tax relief for capital gains in financial accounting uncovers that there is a permanent difference between result in financial accounting and taxable result. That is way result in financial accounting must be corrected for the purpose of calculating corporate tax.
The analysis of the corporate income tax relief for capital gains and its recording in financial accounting is based on the systemic review of the Corporate income tax law, Business accounting standards and other tax and financial accounting legislation including also Tax dispute settlement institutions case-law and scientific literature. With reference to this analysis, there is defined what terms are necessary for using this tax relief and the content of these terms. The article diclose that application of these terms must be based on content of legal relations and should not be only formal. An accomplished analysis indicates that corporate income tax system of Republic of Lithuania should allow entities to transfer shares of subsidiary companies and subsequently these funds pay in dividends for shareholders which are natural persons without paying corporate income tax because then mentioned tax relief could succeed to encourage investment and attract foreign capital. What is more, the analysis of recording the corporate income tax relief for capital gains in financial accounting uncovers that there is a permanent difference between result in financial accounting and taxable result. That is way result in financial accounting must be corrected for the purpose of calculating corporate tax.
The analysis of the corporate income tax relief for capital gains and its recording in financial accounting is based on the systemic review of the Corporate income tax law, Business accounting standards and other tax and financial accounting legislation including also Tax dispute settlement institutions case-law and scientific literature. With reference to this analysis, there is defined what terms are necessary for using this tax relief and the content of these terms. The article diclose that application of these terms must be based on content of legal relations and should not be only formal. An accomplished analysis indicates that corporate income tax system of Republic of Lithuania should allow entities to transfer shares of subsidiary companies and subsequently these funds pay in dividends for shareholders which are natural persons without paying corporate income tax because then mentioned tax relief could succeed to encourage investment and attract foreign capital. What is more, the analysis of recording the corporate income tax relief for capital gains in financial accounting uncovers that there is a permanent difference between result in financial accounting and taxable result. That is way result in financial accounting must be corrected for the purpose of calculating corporate tax.
The analysis of the corporate income tax relief for capital gains and its recording in financial accounting is based on the systemic review of the Corporate income tax law, Business accounting standards and other tax and financial accounting legislation including also Tax dispute settlement institutions case-law and scientific literature. With reference to this analysis, there is defined what terms are necessary for using this tax relief and the content of these terms. The article diclose that application of these terms must be based on content of legal relations and should not be only formal. An accomplished analysis indicates that corporate income tax system of Republic of Lithuania should allow entities to transfer shares of subsidiary companies and subsequently these funds pay in dividends for shareholders which are natural persons without paying corporate income tax because then mentioned tax relief could succeed to encourage investment and attract foreign capital. What is more, the analysis of recording the corporate income tax relief for capital gains in financial accounting uncovers that there is a permanent difference between result in financial accounting and taxable result. That is way result in financial accounting must be corrected for the purpose of calculating corporate tax.
Migration and international taxation of natural persons are closely interdependent matters, which determine such the questions: who is resident both in international and national tax law, how differs taxing situation if a person is resident and non-resident, how are national tax law' conflicts solved and double taxation eliminated, what taxation systems exist worldwide, what derives a government's right to tax its persons from, which taxation basement (citizenship or residence) is the most beneficial and corresponding for emigrants and their interests and which one meets the government's needs the best, etc. All these mentioned and other questions are discussed and analysed in this study. The main purpose is to compare provisions of international income taxation with Lithuanian and American tax law. Attention is paid to the definition of resident, which involves the criteria of recognition of natural persons and legal persons (permanent home, centre of vital interests, habitual abode, citizenship, place of effective management, incorporation, mutual agreement procedure), dimentions of income tax regulation for emigrants. There's not forgotten methods of examption and credit when double taxation is eliminating as well. For clearness, emigrants have a meaning of residents abroad in this study.
Migration and international taxation of natural persons are closely interdependent matters, which determine such the questions: who is resident both in international and national tax law, how differs taxing situation if a person is resident and non-resident, how are national tax law' conflicts solved and double taxation eliminated, what taxation systems exist worldwide, what derives a government's right to tax its persons from, which taxation basement (citizenship or residence) is the most beneficial and corresponding for emigrants and their interests and which one meets the government's needs the best, etc. All these mentioned and other questions are discussed and analysed in this study. The main purpose is to compare provisions of international income taxation with Lithuanian and American tax law. Attention is paid to the definition of resident, which involves the criteria of recognition of natural persons and legal persons (permanent home, centre of vital interests, habitual abode, citizenship, place of effective management, incorporation, mutual agreement procedure), dimentions of income tax regulation for emigrants. There's not forgotten methods of examption and credit when double taxation is eliminating as well. For clearness, emigrants have a meaning of residents abroad in this study.
Migration and international taxation of natural persons are closely interdependent matters, which determine such the questions: who is resident both in international and national tax law, how differs taxing situation if a person is resident and non-resident, how are national tax law' conflicts solved and double taxation eliminated, what taxation systems exist worldwide, what derives a government's right to tax its persons from, which taxation basement (citizenship or residence) is the most beneficial and corresponding for emigrants and their interests and which one meets the government's needs the best, etc. All these mentioned and other questions are discussed and analysed in this study. The main purpose is to compare provisions of international income taxation with Lithuanian and American tax law. Attention is paid to the definition of resident, which involves the criteria of recognition of natural persons and legal persons (permanent home, centre of vital interests, habitual abode, citizenship, place of effective management, incorporation, mutual agreement procedure), dimentions of income tax regulation for emigrants. There's not forgotten methods of examption and credit when double taxation is eliminating as well. For clearness, emigrants have a meaning of residents abroad in this study.
Migration and international taxation of natural persons are closely interdependent matters, which determine such the questions: who is resident both in international and national tax law, how differs taxing situation if a person is resident and non-resident, how are national tax law' conflicts solved and double taxation eliminated, what taxation systems exist worldwide, what derives a government's right to tax its persons from, which taxation basement (citizenship or residence) is the most beneficial and corresponding for emigrants and their interests and which one meets the government's needs the best, etc. All these mentioned and other questions are discussed and analysed in this study. The main purpose is to compare provisions of international income taxation with Lithuanian and American tax law. Attention is paid to the definition of resident, which involves the criteria of recognition of natural persons and legal persons (permanent home, centre of vital interests, habitual abode, citizenship, place of effective management, incorporation, mutual agreement procedure), dimentions of income tax regulation for emigrants. There's not forgotten methods of examption and credit when double taxation is eliminating as well. For clearness, emigrants have a meaning of residents abroad in this study.
Harmonization and Prospects of Profit Taxes in the EU Law The Master's thesis examines the elements of corporate income tax, the steps already taken to unify the tax at the European Union level and the prospects for tax harmonization. The master's thesis is divided into three parts. The first part analyzes the elements of corporate income tax - conception, tax payers, tax periods, tax rates. In the second part of the thesis, tax harmonization, tax competition and the adopted harmonization acts in direct taxes are analyzed. In the area of direct taxation, the EU has adopted several directives. The most important of these are the Parent-Subsidiary Directive, which aims to eliminate double taxation on distributed profits between parent and subsidiary companies. The interest and royalty payments Directive. These interest and royalty payments shall be exempt from any taxes in that State provided that the beneficial owner of the payment is a company or permanent establishment in another Member State. The Merger Directive provides for tax deferral of the taxes that could be charged on the income or capital gains derived by the shareholders of the transferring or the acquired company from the exchange of such shares for shares in the receiving or the acquiring company. EU Member States have also signed a convention on elimination of double taxation (Arbitration convention) to eliminate double taxation in specific situations. For example, where branches of multinational companies (associated companies) which are based in different EU countries are taxed by more than one EU country as a result of an upward adjustment in its profits in another EU country. This part also analyzes competition in taxation, which was one of the main reasons that led to harmonization. The final part of the thesis examines the existing initiatives in the harmonization of corporate income tax and assesses the perspectives. The EU Commission has submitted a draft Common Consolidated Corporate Tax Base (CCCTB), which aims to establish new criteria for the calculation of corporate income tax. The European Commission considers that the different corporate tax systems hinder the functioning of the internal market and the free movement of capital. However, Member States are afraid that such unification of the base can lead to full harmonization and tax rate harmonization at EU level. Looking ahead, the author distinguishes various positions, appreciates the possibility of harmonization not only from a legal or economic point of view, but also through the prism of political climate in the Member States. The main criterion that will be the biggest obstacle to harmonizing corporate income tax will remain the unanimity requirement in tax matters. The EU is already taking the initiative to abolish the requirement for unanimity, so changes in the voting system is the only way to see any changes in the harmonization process in the future.
Harmonization and Prospects of Profit Taxes in the EU Law The Master's thesis examines the elements of corporate income tax, the steps already taken to unify the tax at the European Union level and the prospects for tax harmonization. The master's thesis is divided into three parts. The first part analyzes the elements of corporate income tax - conception, tax payers, tax periods, tax rates. In the second part of the thesis, tax harmonization, tax competition and the adopted harmonization acts in direct taxes are analyzed. In the area of direct taxation, the EU has adopted several directives. The most important of these are the Parent-Subsidiary Directive, which aims to eliminate double taxation on distributed profits between parent and subsidiary companies. The interest and royalty payments Directive. These interest and royalty payments shall be exempt from any taxes in that State provided that the beneficial owner of the payment is a company or permanent establishment in another Member State. The Merger Directive provides for tax deferral of the taxes that could be charged on the income or capital gains derived by the shareholders of the transferring or the acquired company from the exchange of such shares for shares in the receiving or the acquiring company. EU Member States have also signed a convention on elimination of double taxation (Arbitration convention) to eliminate double taxation in specific situations. For example, where branches of multinational companies (associated companies) which are based in different EU countries are taxed by more than one EU country as a result of an upward adjustment in its profits in another EU country. This part also analyzes competition in taxation, which was one of the main reasons that led to harmonization. The final part of the thesis examines the existing initiatives in the harmonization of corporate income tax and assesses the perspectives. The EU Commission has submitted a draft Common Consolidated Corporate Tax Base (CCCTB), which aims to establish new criteria for the calculation of corporate income tax. The European Commission considers that the different corporate tax systems hinder the functioning of the internal market and the free movement of capital. However, Member States are afraid that such unification of the base can lead to full harmonization and tax rate harmonization at EU level. Looking ahead, the author distinguishes various positions, appreciates the possibility of harmonization not only from a legal or economic point of view, but also through the prism of political climate in the Member States. The main criterion that will be the biggest obstacle to harmonizing corporate income tax will remain the unanimity requirement in tax matters. The EU is already taking the initiative to abolish the requirement for unanimity, so changes in the voting system is the only way to see any changes in the harmonization process in the future.
Harmonization and Prospects of Profit Taxes in the EU Law The Master's thesis examines the elements of corporate income tax, the steps already taken to unify the tax at the European Union level and the prospects for tax harmonization. The master's thesis is divided into three parts. The first part analyzes the elements of corporate income tax - conception, tax payers, tax periods, tax rates. In the second part of the thesis, tax harmonization, tax competition and the adopted harmonization acts in direct taxes are analyzed. In the area of direct taxation, the EU has adopted several directives. The most important of these are the Parent-Subsidiary Directive, which aims to eliminate double taxation on distributed profits between parent and subsidiary companies. The interest and royalty payments Directive. These interest and royalty payments shall be exempt from any taxes in that State provided that the beneficial owner of the payment is a company or permanent establishment in another Member State. The Merger Directive provides for tax deferral of the taxes that could be charged on the income or capital gains derived by the shareholders of the transferring or the acquired company from the exchange of such shares for shares in the receiving or the acquiring company. EU Member States have also signed a convention on elimination of double taxation (Arbitration convention) to eliminate double taxation in specific situations. For example, where branches of multinational companies (associated companies) which are based in different EU countries are taxed by more than one EU country as a result of an upward adjustment in its profits in another EU country. This part also analyzes competition in taxation, which was one of the main reasons that led to harmonization. The final part of the thesis examines the existing initiatives in the harmonization of corporate income tax and assesses the perspectives. The EU Commission has submitted a draft Common Consolidated Corporate Tax Base (CCCTB), which aims to establish new criteria for the calculation of corporate income tax. The European Commission considers that the different corporate tax systems hinder the functioning of the internal market and the free movement of capital. However, Member States are afraid that such unification of the base can lead to full harmonization and tax rate harmonization at EU level. Looking ahead, the author distinguishes various positions, appreciates the possibility of harmonization not only from a legal or economic point of view, but also through the prism of political climate in the Member States. The main criterion that will be the biggest obstacle to harmonizing corporate income tax will remain the unanimity requirement in tax matters. The EU is already taking the initiative to abolish the requirement for unanimity, so changes in the voting system is the only way to see any changes in the harmonization process in the future.
Harmonization and Prospects of Profit Taxes in the EU Law The Master's thesis examines the elements of corporate income tax, the steps already taken to unify the tax at the European Union level and the prospects for tax harmonization. The master's thesis is divided into three parts. The first part analyzes the elements of corporate income tax - conception, tax payers, tax periods, tax rates. In the second part of the thesis, tax harmonization, tax competition and the adopted harmonization acts in direct taxes are analyzed. In the area of direct taxation, the EU has adopted several directives. The most important of these are the Parent-Subsidiary Directive, which aims to eliminate double taxation on distributed profits between parent and subsidiary companies. The interest and royalty payments Directive. These interest and royalty payments shall be exempt from any taxes in that State provided that the beneficial owner of the payment is a company or permanent establishment in another Member State. The Merger Directive provides for tax deferral of the taxes that could be charged on the income or capital gains derived by the shareholders of the transferring or the acquired company from the exchange of such shares for shares in the receiving or the acquiring company. EU Member States have also signed a convention on elimination of double taxation (Arbitration convention) to eliminate double taxation in specific situations. For example, where branches of multinational companies (associated companies) which are based in different EU countries are taxed by more than one EU country as a result of an upward adjustment in its profits in another EU country. This part also analyzes competition in taxation, which was one of the main reasons that led to harmonization. The final part of the thesis examines the existing initiatives in the harmonization of corporate income tax and assesses the perspectives. The EU Commission has submitted a draft Common Consolidated Corporate Tax Base (CCCTB), which aims to establish new criteria for the calculation of corporate income tax. The European Commission considers that the different corporate tax systems hinder the functioning of the internal market and the free movement of capital. However, Member States are afraid that such unification of the base can lead to full harmonization and tax rate harmonization at EU level. Looking ahead, the author distinguishes various positions, appreciates the possibility of harmonization not only from a legal or economic point of view, but also through the prism of political climate in the Member States. The main criterion that will be the biggest obstacle to harmonizing corporate income tax will remain the unanimity requirement in tax matters. The EU is already taking the initiative to abolish the requirement for unanimity, so changes in the voting system is the only way to see any changes in the harmonization process in the future.
2. Inadequate enforcement: In a field as controversial and complex as the funding of parties and campaigns, law require effective supervision and implementation. Enforcement demands a strong authority endowed with sufficient legal powers to supervise, verify, investigate, and if necessary institute legal proceedings. The purpose of legislation has varied from country to country depending on the particular problems which have acted as the spur to reform. Controlling corruption has been a primary aim of the most reform efforts. A common argument for making it compulsory to declare political contributions is that is likely to deter politicians from entering into shady deals in exchange for contributions. Political corruption is a prominent issue and illegal funding of political parties undermines the democratic system as a whole. Parties receive large donations from a few wealthy donors while the income from membership subscriptions are insignificant. The system of regulations on financing of political parties is in permanent fluctuation— the state cannot stop amending and improving this system. No ideal model has been adopted anywhere in the world. Lithuania is on its way of looking for the best model possible.
2. Inadequate enforcement: In a field as controversial and complex as the funding of parties and campaigns, law require effective supervision and implementation. Enforcement demands a strong authority endowed with sufficient legal powers to supervise, verify, investigate, and if necessary institute legal proceedings. The purpose of legislation has varied from country to country depending on the particular problems which have acted as the spur to reform. Controlling corruption has been a primary aim of the most reform efforts. A common argument for making it compulsory to declare political contributions is that is likely to deter politicians from entering into shady deals in exchange for contributions. Political corruption is a prominent issue and illegal funding of political parties undermines the democratic system as a whole. Parties receive large donations from a few wealthy donors while the income from membership subscriptions are insignificant. The system of regulations on financing of political parties is in permanent fluctuation— the state cannot stop amending and improving this system. No ideal model has been adopted anywhere in the world. Lithuania is on its way of looking for the best model possible.
Democratic politics cannot proceed without financial resources. Political parties would be unable to organize themselves, politicians could not communicate with the public, and the election campaigns could not be held if money was not collected. Therefore political funding is not only indispensable, it is necessary. Over the past several years, party financing scandals have shaken countries in every region of the world. This has led to increased contempt for and public disillusionment with parties and politicians, and undermined the public's confidence in the political process. There is no simple answer to how political finance should be organized, but there is much to be learned from current experiences in different parts of the world. The Western European democracies have emphasized distributive measures, especially cash subsidies to political parties and several countries in the region support fund-raising from individuals by tax incentives. The public money is provided almost without any obligations. Some countries, including Lithuania, have been very dependent on public funds which now have become the dominant source of income. Where regulations are limited it is because the privacy of parties and donors are emphasized. Financing of political parties has led to severe problems in various countries. There are at least two basic reasons: 1. Loopholes: although contributions to political parties and to election campaigns are two of the most important and most direct channels through which money may be use to influence politics, they are not the only ones. Restrictions on the financing of parties and election campaigns are likely to prove ineffective if other forms of politically relevant financing remain unchecked. 2. Inadequate enforcement: In a field as controversial and complex as the funding of parties and campaigns, law require effective supervision and implementation. Enforcement demands a strong authority endowed with sufficient legal powers to supervise, verify, investigate, and if necessary institute legal proceedings. The purpose of legislation has varied from country to country depending on the particular problems which have acted as the spur to reform. Controlling corruption has been a primary aim of the most reform efforts. A common argument for making it compulsory to declare political contributions is that is likely to deter politicians from entering into shady deals in exchange for contributions. Political corruption is a prominent issue and illegal funding of political parties undermines the democratic system as a whole. Parties receive large donations from a few wealthy donors while the income from membership subscriptions are insignificant. The system of regulations on financing of political parties is in permanent fluctuation— the state cannot stop amending and improving this system. No ideal model has been adopted anywhere in the world. Lithuania is on its way of looking for the best model possible. ; 2010 m. rugsėjo 15 d. įsigaliojo naujasis Politinių partijų ir politinių kampanijų finansavimo bei finansavimo kontrolės įstatymas, gana kontroversiškai vertinamas tiek politinių sluoksnių, tiek visuomenės. Šiame straipsnyje keliamas tikslas paanalizuoti tris klausimus: 1) politinių partijų finansavimo iš šalies biudžeto teorinius aspektus, akcentuojant finansavimo būtinumą, būdus ir pagrindinius principu; 2) parodyti nagrinėjamos problemos nuostatų pokyčius naujajame įstatyme, lyginant su 2004 m. Politinių partijų ir politinių kampanijų finansavimo bei finansavimo kontrolės įstatymu; 3) pateikti faktinę partijų finansavimo iš valstybės biudžeto analizę per pastarąjį dešimtmetį. Reikia pasakyti, kad analizuojami tik partijų finansavimo iš biudžeto klausimai, o kiti šaltiniai šiame straipsnyje plačiau nenagrinėjami. Tokį pasirinkimą lėmė tai, kad šis aspektas sukelia daugiausia diskusijų tiek teoriniu, tiek politiniu lygmeniu.
