Page 1 |
Previous | 1 of 10 | Next |
|
This page
All
Subset
|
DISC (Domestic International Sales Corporation) Tax Incentives to Encourage Exports by Walter M. Seltzer The Domestic International Sales Corporation legislation was enacted, on December 10,1971, to provide U.S. firms with a tax incentive to encourage their increased export activity. The United States has suffered a steadily worsening balance of payments position; the Interest Equalization Tax and, subsequently, the Foreign Direct Investment Program are evidence of the concern over the recurring large deficits. Had it not been for her trade surplus, the international payments deficits of the U.S. would have been much greater. But that trade balance has declined steadily in the past several years. DISC is designed to enhance the competitive position of the U.S. producer in the international marketplace and thereby help reverse the unfavorable trend in those balances. A nonmanufacturing or producing U.S. corporation which has only one class of shares with a value of at least $2,500 and which meets certain tests with regard to its receipts and assets—substantially all receipts and assets must be "export-related"—can elect to be a DISC. Once a valid election is made, tax may be deferred on one half of the corporation's export profits; the other half is currently taxable to its shareholders as a dividend, whether or not actually distributed. A U.S. manufacturer, regardless of its relationship to the DISC, can borrow the DISC'S tax-deferred profits—the producer's loan—for use in the U.S. 30
Object Description
Title |
DISC (Domestic International Sales Corporation): Tax incentives to encourage exports |
Author |
Seltzer, Walter M. |
Subject |
Domestic international sales corporations -- United States Income tax -- United States -- Foreign income |
Citation |
Tempo, Vol. 18, no. 2 (1972, autumn), p. 30-39 |
Date-Issued | 1972 |
Source | Originally published by: Touche Ross, & Co. |
Rights | Copyright and permission to republish held by: Deloitte |
Type | Text |
Format | PDF page image with corrected OCR scanned at 400 dpi |
Collection | Deloitte Digital Collection |
Digital Publisher | University of Mississippi Library. Accounting Collection |
Date-Digitally Created | 2010 |
Language | eng |
Identifier | Tempo_1972_Autumn-p30-39 |