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The distribution of profits between corporations resident in different
jurisdictions gives rise to significant tax planning opportunities for
multinational enterprises. As cross-border transactions between corporations
grow in number and complexity, the question of how a profit distribution is
classified for corporate income tax purposes becomes increasingly important,
particularly in the context of issues such as double taxation, non-taxation
and tax neutrality. This unique and practical work covers the rules
determining which transactions may be classified and therefore taxed as
dividend income and how classification conflicts may be resolved. The author
examines the classification of various inter-corporate transactions, including:
• Payments made under dividend-stripping arrangements.
• Fictitious profit distributions.
• Economic benefits in the context of transfer pricing.
• Returns on debt-equity hybrids.
• Interest payments in thin capitalization situations and distributions
The analysis of each transaction refers to international tax law. Most weight
is given to tax treaties and EU tax law. The approaches adopted in different
states’ national tax law are covered by a more general analysis. The
comprehensive coverage and practical nature of The International Tax Law
Concept of Dividend make it an essential acquisition for tax practitioners,
researchers and tax libraries worldwide.
List of Abbreviations
Chapter 1. Introduction
Chapter 2. Tax Treatment of the Inter-corporate Cross-Border Dividends
Chapter 3. Interaction among Different Legal Systems of International
Chapter 4. Different Dividend Concepts in International Tax Law
Chapter 5. Dividend-Distributing Entities
Chapter 6. Dividend-Stripping and the Dividend-Generating Relationship
Chapter 7. Fictive Distributions as a Dividend
Chapter 8. Classification of Economic Benefits from Corporations to
their Shareholders in the Form of Transfer Prices
Chapter 9. Classification of Return on Debt-Equity Hybrids
Chapter 10. Classification of Interest in Thin Capitalization Situations
Chapter 11. Classification of Liquidation Distributions
Chapter 12. Concluding Remarks