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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Aside from tobacco products, the DOF and DOH are likewise pushing to increase excise taxes on alcohol to at least P40 per liter and impose a unitary tax system on fermented liquors.
Since SB 2233 will still go through amendments, the DoF and DOH are also asking Congress to increase the taxes on alcohol from the current P25 per liter to at least P40 per liter and impose a unitary tax system on fermented liquors.
Aside from tobacco products, the agencies also called on Congress to raise the excise taxes on alcohol to at least P40 per liter and impose a unitary tax system on fermented liquors.
Fortunately, there have been some encouraging recent signs that the idea of a unitary tax is gaining traction.Introducing a global minimum effective corporate-tax rate on MNCs of between 20 percent and 25 percent, as the ICRICT (of which I am a member) advocates, would greatly weaken these firms' financial incentives to use so-called transfer pricing among their subsidiaries to shift recorded profits to low-tax countries.
The plant, which will close in 2025, is taxed on the state's unitary tax roll and is not included in the local property tax data reported above.
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).
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.
Wallingford, British Retaliation Against the California Unitary Tax: The Needed Impetus for a Federal Solutions, 8 Journal of Comparative Business and Capital Market Law 345 (1986).
Estimates of How the Unitary Tax Affects Business Investment.