The US tax system has not been updated since 1988. Since then, the world has changed significantly as the global economy has developed, new trade agreements have entered into force, and technological advancements have changed the way business is done. The world is undeniably a different place but American is stuck in the past.

One consequence of inaction is the retention of the worldwide system of taxation even as the rest of the world has moved toward territorial taxation.

Today, the US is just one of six developed countries that use theworldwide system. Among these it also has the highest business income tax rates. This complex and outdated system, in combination with high rates, is the main reason American businesses are inverting or being acquired by foreign competitors.

In practice, the worldwide system means that income earned by American businesses overseas faces taxation when it is brought back to the parent company. Although there is a tax credit that allows businesses to deduct taxes already paid in the foreign nation, the fact that the US has the highest rate in the developed world inevitably subjects businesses to double taxation.

In contrast, 28 of the 34 countries in the Organisation for Economic Co-Operation and Development (OECD) have some form of a territorial system of taxation. These nations tax income earned in their country but welcome the return of money earned abroad tax-free. This makes sense because this income is already taxed in the country where it was earned.

Back in 2000, just 14 of the 34 OECD member countries utilized a territorial system. Since then, countries like New Zealand havechanged their codes to territorial systems to ensure their businesses are not at a competitive disadvantage compared with business based outside the country.

America should follow suit and update its code.Compared to most of the world, businesses in the US have both a higher tax burden, and also a more complex system that treats different income in different ways.

Fixing this relic of a tax code should be a priority for lawmakers. American businesses simply can't compete with a system still in the 1980s.

[Tell Congress to Save US Businesses by Reforming the Tax Code Now!]

By Eric Kroh

Law360, New York (March 18, 2016, 2:36 PM ET) -- In this weeks Taxation with Representation, one of the largest pipeline operators in the US teams up with a Canadian enterprise, an asset management firm scoops up a specialty grocer and two laser manufacturers combine.

TransCanada, Columbia Pipeline Group Join Up

TransCanada Corp. will pay $13 billion to buy Columbia Pipeline Group Inc., combining the company behind the controversial Keystone XL oil pipeline project with one of the largest interstate pipeline operators in the US, the companies said on March 17.

Sullivan Cromwell LLP tax...

PHUKET: Clients who have businesses in multiple countries have called me in fear of the tax man. Their fears are based on the unknown. They don’t understand the tax laws in Thailand and fear the confiscatory powers of the revenue department for errors in their filings.

For foreign nationals living in Thailand, Thai tax laws and forms are written in a language that they cannot read. While there are Thai accountants who can assist them with Thai tax filings, this issue is not readily solved when individuals have business dealings in multiple countries.

For individuals and companies that operate in multiple countries, double taxation can place them in financial peril. Juridical double taxation is when multiple jurisdictions tax the same income, assets, or financial transactions.

In most countries, a company is taxed at the place where it is registered or has its headquarters and also upon any worldwide income. So if a Thai company had a branch in a foreign country, the company could possibly have to pay tax on income in that foreign country and on the same income in Thailand. This will mean that they are taxed twice on the same income. Unless there is an agreement between the two countries, this could be a large financial impediment to the Thai company.

With increased globalization, this issue has become a more common problem. In order to increase trade and to prevent their citizens from being unfairly punished for expanding their business, Thailand has entered into bilateral tax conventions with 60 countries. Tax treaties protect foreign citizens and companies from being taxed differently from local businesses. Tax treaties also protect profits from being double taxed. There are multiple types of provisions that are negotiated by tax treaty countries but the tax treaties remove the uncertainty of taxation for international transactions.

In Thailand, there are many methods of avoiding the double taxation. A combination of these various methods can be implemented to provide taxpayers double tax relief, such as the Foreign Tax Credit Exemption Method, or the Deduction Method.

A Foreign Tax Credit is offered by income tax system to mitigate the potential for double taxation. The credit can be granted in those systems that taxes residents on income which have been taxed in another jurisdiction. This reduces the amount of domestic taxes are due by the amount of the foreign tax as a credit of tax already paid.

The Exemption Method usually happens when a country taxes its residents on their domestic-sourced income and provides an exemption to them from domestic taxes on their foreign-sourced income. Jurisdiction to tax rests exclusively with the country of source.

The Deduction Method allows taxpayers in their country of residence to ask for deduction of taxes, which have been paid to a foreign government in respect of foreign sourced income. The deduction method is different from a Foreign Tax Credit in that a deduction reduces the taxpayer’s taxable income, while a credit provides a full credit on the taxes that are owed.

Most local Thai accountants cannot handle tax issues that deal with transactions involving multiple jurisdictions. Government Revenue Departments have immense power and errors can lead to businesses being shut down. When deciding to enter into international business transactions, it is prudent to consult someone who understands the tax laws in both jurisdictions.

Additional reporting by Mitrabhorn Lekbonwonwong.

Mitrabhorn Lekbonwonwong is a licensed Thai attorney with an LL.M in Finance and Tax Law from Chulalongkorn University. She is currently obtaining an LL.M Taxation at Northwestern University Law School in Chicago, IL. Robert Virasin is managing director of Virasin amp; Partners and resides in Bangkok, Thailand and can be reached at [email#160;protected]

This article first appeared in the March 12-18 issue of the hard-copy Phuket Gazette newspaper.

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SCOTCH PLAINS, NJ - A vacant kitchen and tattered canopy are all that remains of Marias Restaurant and Pizzeria in Scotch Plains.

As of Wednesday, March 16, the business was officially seized by the State of New Jersey Division of Taxation. A fluorescent orange notice signed by Assistant Chief Brian OConnell hangs in the window, reading:

The property contained herein has been seized, pursuant to NJSA 54:49-13A, for non-payment of New Jersey State taxes by the virtue of warrant(s) of execution of certificate(s) of debt docketed in the Superior Court of New Jersey.

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All persons are warned not to remove or tamper with this property in any manner, under penalty of the law.

Established in the mid-1980s, Marias stood by its family-owned business model for nearly three decades. The restaurant was bought in 1993 by Mike Reyhan, who sold it in 2006 and repurchased itin 2009.

There is no word whether Marias will request a seizure release. According to the IRS, a minimum bid will be calculated and allow the owners to challenge the fair market value determination.