US call for clear rules on taxation
By Michael Mann in Brussels Published: November 19 2001 21:06 | Last Updated: November 19 2001 21:27
The World Trade Organisation must give the US clear guidance on what it needs to do to bring its taxation regime into line with global trade rules, a senior US official said on Monday.
Grant D. Aldonas, under-secretary of commerce, said the US would present its appeal to the WTO's appellate body next Monday against a ruling that the Foreign Sales Corporations (FSC) Act violates world trade rules. The FSC allows US companies to shelter income from exports and other foreign sales from tax.
Mr Aldonas said the US was ready to abide by whatever decision the appeals body reached, but criticised the lack of precision in the WTO's ruling. Although it can in theory be overturned on appeal, the initial ruling was so overwhelming that few expect this to happen.
Mr Aldonas repeated the US view that the ruling could also call into question the tax regimes of a number of European Union countries, including France, the Netherlands and Belgium.