Much is spoken and written about taxes, and a common misconception is that taxes in the US are comparatively high when compared to other nations. Many organizations and political action committees address taxation in their mission statement. Please click on the Taxation Powerpoint presentation to review the purposes of taxation and the major types of global taxes. Of special note is advantages and disadvantage of the value added tax , as illustrated on Page 329 of the textbook. Now Go Search Extraterritorial Application.
Many nations often attempt to regulate business activities conducted outside their borders.
Nations do not want to miss tax revenues. Antitrust legislation may also be applied in an extraterritorial manner. A most important piece of legislation impacting US firms engaged in international business is the Helms-Burton Act. In 1996, two small aircraft owned by Cuban exiles in Miami were shot down over Cuba. Fidel Castro took over Cuba in 1959, and since then assets of US firms on Cuban soil have been sold or leased by the Cuban government.