Abstract
The purpose of this hypothetical legal problem is to illustrate solutions which would result in different legal systems to a common set of facts; to highlight the interplay of legal systems when confronted by such international transactions, and to compare the various outcomes. The contributing authors have emphasized legal considerations but also have noted relevant commercial (or political) considerations where appropriate. It is assumed that the international transactions in this problem do not violate relevant antitrust or foreign-exchange laws and that all technical know-how and patents have been registered properly or protected. Each contributing author has been requested to analyze the hypothetical situation by assuming that the corporation or company is entering the jurisdiction in which he practices. (For example, a United States attorney might assume that the Solar Collector and Solar Generator are produced by two companies in the European Communities attempting to penetrate the United States market; a French attorney might assume that the Solar Collector and Solar Generator are produced by two corporations in the United States attempting to penetrate the French or European Communities market.)
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Notes
No attempt is made to present a recommended plan or scheme for minimizing taxes, but rather to provide a reasonable model, based upon past experience, which can be used to observe the operation and interrelation of the various legal systems.
See, for example, Stebbings, `Panama and the Multinational Corporation: Tax Haven and Other Considerations’, 8 International Lawyer (1974), pages 626, 629.
Section 11.83(1), Internal Revenue Code of Liberia (1977).
The International Trust Company of Liberia is located at 80 Broad Street, P.O. Box 292, Monrovia, Liberia. It is represented by the following international agents: Liberian Corporation Services Inc., 5 West 45th Street, New York, New York 10036, U.S.A.; Liberian Services S.A., Pelikanstrasse 37, 8001 Zürich, Switzerland; Liberian Services Ltd., 33 Cork Street, London W1X 1HB, England; and Liberian Services (Far East) Ltd., 11th Floor, American International Tower, 16–18 Queens Road Central, Hong Kong.
A Service for Attorneys,The International Trust Company of Liberia, page 7, paragraph 3(a).
Section 1.4(5)(c), Business Corporation Act of Liberia (1976).
A Service for Attorneys, Supra,note 9, page 8, paragraph 4.
Section 2.1, Business Corporation Act of Liberia (1976).
A Service for Attorneys, Supra,note 9, page 7, paragraph 3(a).
Id.,paragraph 3(b).
Id.,page 8, paragraphs 3(c) and (d).
Section 6.3(1), Business Corporation Act of Liberia (1976).
A Service for Attorneys, Supra,note 9, page 3, paragraphs 6(a) and (b).
Id.,page 2, paragraph 5(a) and page 3, paragraph 8.
Ellison, `Bermuda as a Base for Multinationals’, 53 Boston University Law Review (1973), pages 367, 369.
Stebbings, Supra, note 2, pages 626, 628.
Id.; See generally Hadari, `Tax Treaties and Multinational Enterprise’, 20 American Journal of Comparative Law (Winter 1972), page 111.
Section 11.84(5), Internal Revenue Code of Liberia (1977).
For example, see a detailed explanation of the tax laws of Switzerland and an explanation of their interaction with the tax laws of the United States, Braun, The Swiss Base Company: Tax Avoidance Device for Multinationals’, 50 Notre Dame Lawyer (1975), page 645.
Tillinghast, `Tax Aspects of International Transactions’ (1978), Section 8.3, pages 182–199.
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Campbell, D., Wittler, T.R. (1979). The Hypothetical Problem. In: Campbell, D. (eds) International Handbook on Comparative Business Law. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-4399-0_9
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DOI: https://doi.org/10.1007/978-94-017-4399-0_9
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