Taxation-Transnational Commons^™

Are Digital Services Taxes Imposed By Other Countries Creditable Under Irc Section 903? Yes. But, What If The Opposite Is True?, Charles Edward Andrew Lincoln Iv

Student Scholarship

This article is divided in the following parts. Part II will discuss and define what Section 903 stands for from a legislative, regulatory, and case perspective. Part III will discuss what digital services taxes are. Part III will define “nexus” and how the concept of “nexus” will relate to Section 903. Part IV concludes by suggesting that digital services taxes do not fall into the traditional statutory paradigm. Ultimately, Section 903 hypothecates that a tax will either be a traditional income tax creditable under Section 901 or tax in the place of that tax. If it does not fall into …

Hamiltonian Shifts In State Aid And The Coming Breakdown Of The Internal Market: Can The European Union Survive Its Covid-19 Response?, Richard Dacher

Cardozo International & Comparative Law Review

This Note analyzes the consequences of the COVID-19 pandemic to the legal structure of the EU and its path forward. The EU's and the member states' actions to combat the pandemic have brought the political and economic union to the precipice of a breakdown of the Internal Market. Fiscal policies mirroring those of the United States will likely rise in its place. Recent tax court decisions, acquiescence to federal debt-sharing schemes, and deregulated state aid policies highlight the federalization of the EU as a unified economic structure, and also foreshadow its diminished influence over the member states' state aid policies. …

Tax Incentives And Sub-Saharan Africa, Karen B. Brown

Pepperdine Law Review

The OECD’s Base Erosion Profit Shifting (BEPS) project has taken a powerful and welcome look at many of the tax avoidance strategies that proliferate in a world where multinational enterprises are in the business of exploiting gaps in the tax laws of different countries to minimize their ultimate tax bills. The focus on international consensus and prescriptions for reform has not been an unqualified good for the nations in Sub-Saharan Africa, which find themselves in the position of reacting to standards and taking on compliance burdens set without sufficient consideration of their special circumstances. Because the path for the BEPS …

Workplace Transformation And Its Tax Compliance Implications, Jay A. Soled

Villanova Law Review (1956 - )

No abstract provided.

Taxation And Business: The Human Rights Dimension Of Corporate Tax Practices, Reuven S. Avi-Yonah

Book Chapters

The response of both developed and developing countries to global developments has been first, to shift the tax burden from (mobile) capital to (less mobile) labour, and second, when further increased taxation of labour becomes politically and economically difficult, to cut government services. Thus, globalization and tax competition lead to a fiscal crisis for countries that wish to continue to provide those government services to their citizens, at the same time that demographic factors and increased income inequality, job insecurity and income volatility that result from globalization render such services more necessary. This chapter argues that if government service programs …

Front Matter (Letter From The Editor, Masthead, Etc.)

The Contemporary Tax Journal

No abstract provided.

New Puzzles In International Tax Agreements, Wei Cui

All Faculty Publications

The G7’s “global minimum tax” accord—followed by a new version of the OECD’s “Two Pillar Solution” and its endorsement by the G20—is accepted by many as evidence for international tax cooperation. But recent policy discussions offer no answer to a basic question: What can countries cooperate to achieve? This Article shows that the answers provided by proponents of the new international tax agreement are alarmingly ad hoc, misleading, and incoherent. Scholarship on corporate taxation has also long failed to identify potentials for international cooperation. The more successful international agreements purport to be, therefore, the more puzzling they become. I …

International Tax Law Between Loyalty, Exit, And Voice, Tarcísio Diniz Magalhães

Dalhousie Law Journal

Discourse on the merits and pitfalls of multilateral cooperation for advancing justice in international tax law have recently re-emerged in the literature. Some tax scholars, even while criticizing global projects like the OECD/G20 initiatives on base erosion, profit shifting and the tax challenges arising from the digitalisation of the economy, insist that cooperative efforts herald a step in the right direction. Others contest the feasibility of international cooperation or its value for developing countries. Drawing on Albert Hirschman’s oft-cited framework for actor behaviour under institutional malperformance, this article shows that there are three alternatives for those discontented with the status …

Cross-Border Tax Transparency: A Study Of Recent Policy Developments In Turkey, Leyla Ateş

Dalhousie Law Journal

Transnational tax information cooperation has the crucial role of empowering tax administrations to collect tax revenues in full and on time, thereby narrowing the tax gap created by international evasion and avoidance. However, the adequacy of established transnational tax information exchange systems in combatting international tax evasion and avoidance has been severely criticized and a new wave of progress on transparency has started after the 2008 global economic crisis. In this direction, Turkey set cross-border tax transparency high on its political agenda. Though, Turkey has operationalized new transnational tax cooperation agreements very slowly. Furthermore, Turkey’s approach to exchanging information has …

Designing A More Sustainable Global Tax System, Allison Christians

Dalhousie Law Journal

The international tax system incentivizes unsustainable business practices because it ignores the private profits created by externalizing human, societal, and environmental costs. This paper proposes a novel reform: applying living wage and externality assessment tools to the rules for establishing where income arises for tax purposes. To do so, I propose a method that is relatively complex but arguably more accurate (in tax terms) and a complementary but relatively simpler proxy method. I examine how each method would implicate treaty-based and domestic rules and processes and conclude that the proposed design provides a viable starting point to make the global …

Repurposing Pillar One Into An Incremental Global Tax For Sustainability: A Collective Response To A Global Crisis, Jinyan Li, Sophie Chatel

Articles & Book Chapters

This article proposes to repurpose the OECD/IF Pillar One Blueprint from a taxing rights reallocation mechanism into an incremental global tax for sustainability. With a common goal and DST-like feature for simplification, the proposal aims to ease the negotiation of essential and drastic simplifications required to deliver a workable solution.

Repurposing Pillar One Into An Incremental Global Tax For Sustainability: Some Blue Sky Thinking In The Midst Of Global Crisis, Jinyan Li, Sophie Chatel

Articles & Book Chapters

In this article, the authors make a case for repurposing the OECD Pillar One from a mechanism for reallocating taxing rights to a global tax on the largest and most profitable MNEs’ market-based profits. Such global tax would have the hybrid features of a net-basis corporate income tax and a turnover-basis digital services tax through a conversion formula that ensures a low-rate DST on sales can replicate a higher rate CIT on a country’s share of the profit determined using under the formulary allocation method. More importantly, the authors instill a common purpose of the international tax consensus – to …

International Tax, Margriet Lukkien, Christie Galinski, David Dingfa Liu, Aseem Chawla, Eugenio Romita, Guillermo Villsenor, Jorge Lopez, Star Q. Lopez

The Year in Review

No abstract provided.

Lecture In Human Rights: Tax Policy, Global Economics, Labor And Justice In Light Of Covid-19, Reuven S. Avi-Yonah

Articles

International Tax Law has extensive ramifications on the wealth gap between wealthy developed nations and poor developing nations. This divide in prosperity has been made clear again in the global response to the COVID-19 pandemic. Developing nations are currently ill-equipped to adapt to, and regulate, an equitable system of taxation on a domestic level. A further challenge is the difficulty of ensuring that foreign investors, especially multinational corporations, are able to comply with tax regulations. Developed nations such as the United States and members of the European Union must continue to work with developing nations to reduce tax evasion and …

The Ingenious Biden Tax Plan, Reuven S. Avi-Yonah

Articles

In this article, the author considers the Biden administration’s Made in America Tax Plan, which would overhaul the corporate and international tax provisions of the Tax Cuts and Jobs Act and represents a long-overdue effort to more fairly tax U.S.-based multinationals.

Tax Planning For Foreign Expansion By U.S. Petroleum Companies, Martin Van Brauman

Journal of Natural Resources & Environmental Law

No abstract provided.

Beyond The "Made In America Tax Plan": Gilti And International Tax Cooperation's Next Golden Age, Steven A. Dean

Faculty Scholarship

Tumultuous times can be particularly difficult for the vulnerable. That may be no less true in the international tax context than it is elsewhere, but disruptive change can also open the door to greater participation by, and rewards for, those long treated as outsiders. With international tax cooperation's first golden age receding into history, new priorities have begun to take root. Unprecedented challenges buffet the international tax regime, suggesting that its future may depend less on its capacity to shield businesses from taxation than on its ability to find common ground among very different states.

International tax cooperation has long …

Federal Tax Considerations In Foreign Oil And Gas Operations By Domestic Oil Companies, Martin M. Van Braumen

Journal of Natural Resources & Environmental Law

No abstract provided.

Federalizing Tax Justice, Reuven Avi-Yonah, Orli Avi-Yonah, Nir Fishbien, Hayian Xu

Articles

The United States is the only large federal country that does not have an explicit way to reduce the economic disparities among more and less developed regions. In Germany, for example, federal revenues are distributed by a formula that takes into account the relative level of wealth of each state (the so-called Finanzausgleich, or fiscal equalization). Similar mechanisms are found in Australia, Canada, India, and other large federal countries. The United States, on the other hand, has no such explicit redistribution. Each state is generally considered equal and sovereign, and the federal government does not distribute revenues to equalize …

Summaries From The 2020 36th Annual Tei-Sjsu High Tech Tax Institute, Charlene Kliatchko, Jane Lei Cpa, Hanna Shatanionak Cpa, Liubov (Luba) Shilkova, Xiaoyue Tan

The Contemporary Tax Journal

No abstract provided.

Due Diligence In International Tax Law, Reuven S. Avi-Yonah, Gianluca Mazzoni

Book Chapters

This chapter describes how the due diligence standard was developed in international tax law before 2008, and then how the standard was greatly modified after the financial crisis, the enactment of the Foreign Account Tax Compliance Act of 2010 (FATCA), and the subsequent development of the Common Reporting Standards (CRS). The chapter outlines how the due diligence concept is applied to private actors, especially financial institutions, to prevent tax evasion. It ends with some conclusions including that while due diligence in international tax law is currently embodied in a specific set of rules, there remains an absence of an overarching …

Delaware's Global Competitiveness, William J. Moon

Faculty Scholarship

For about a hundred years, Delaware has been the leading jurisdiction for corporate law in the United States. The state, which deliberately embarked on a mission to build a haven for corporate law in the early twentieth century, now supplies corporate charters to over two thirds of Fortune 500 companies and a growing share of closely held companies. But Delaware’s domestic dominance masks the important and yet underexamined issue of whether Delaware maintains its competitive edge globally.

This Article examines Delaware’s global competitiveness, documenting Delaware’s surprising weakness competing in the emerging international market for corporate charters. It does so principally …

Principles For Policymakers, James R. Hines Jr.

Book Chapters

Multinational corporations are global goliaths, but they have not conquered the world, nor are they responsible for every economic ill, as is sometimes alleged. These firms contribute to global prosperity by improving productivity and efficiency, innovating, and creating jobs-mostly good jobs-in both home and host countries. Governments lavish attention on multinational corporations, seeking the good that accompanies their investments even as policymakers worry about the influence multinational firms have on the local environment, social conditions, and politics. In this regard, governments face the tradeoffs that commonly afflict economic policymaking. Efforts to control the actions of multinational firms typically come at …

Origin And Differentiation In International Income Allocation, Ivan Ozai

Articles & Book Chapters

The present international tax rules are typically justified by origin-based theories. These theories align countries’ tax entitlements with the geographical location of the economic factors that contribute to the creation of income. Two recent phenomena have rendered origin-based approaches limited in scope. First, the economic integration of multinational corporations and the relevance of intangibles have made it infeasible to precisely pinpoint the factors contributing to the generation of income. Second, the growing disputes between countries about which economic factors should be considered relevant for sharing the international tax base have recently led to increased consideration of distributional consequences, thus moving …

Multinational Activity In The Modern World, James R. Hines Jr., Fritz C. Foley, Raymond J. Malatoni Jr., David Wessel

Book Chapters

Multinational corporations are the global goliaths of modern times. These entities collectively are responsible for large portions of world production, employment, investment, international trade, research, and innovation. Although their economic impact is most pronounced in high-income countries, where their activities have been concentrated historically, their reach increasingly extends to every corner of the world. Decisions made by these firms affect not only those who work for them, buy from them, do business with them, and compete with them, but also communities and countries in which they are located. As a result, their operations and activities are subjects of considerable interest …

Are Digital Services Taxes Imposed By Other Countries Creditable Under Irc Section 903? Yes. But, What If The Opposite Is True?, Charles Edward Andrew Lincoln Iv

Touro Law Review

No abstract provided.

China’S Rising (And America’S Declining) Influence In Global Tax Governance?, Jinyan Li

Articles & Book Chapters

What are the implications of China’s rise for the US dominance in global tax governance? Will the signs of “decoupling” or parallel standards in other areas, such as technology (e.g., 5G) and COVID-19 vaccine appear in tax policy? Will China go along with the US-catalyzed global minimum tax in Pillar Two and US-modified reallocation of residual profits to market jurisdictions under Pillar One?

This article considers these questions in light of the broader historical and geopolitical context. 11 Section 2 provides an overview of the nature, purpose and legal instruments of international taxation and highlights the significance of the China …

Table Of Contents, Seattle University Law Review

Seattle University Law Review

Table of Contents

A Major Simplification Of The Oecd’S Pillar 1 Proposal, Michael J. Graetz

Faculty Scholarship

In this report, Graetz suggests major modifications to the OECD’s pillar 1 blueprint proposal to create a new taxing right for multinational digital income and some product sales that would greatly simplify the proposal. The modifications rely on readily available existing financial information and would achieve certainty in the application of pillar 1, while adhering to its fundamental structure and policies.

For Richer Or Poorer: Incentivizing Meaningful Investments In Qualified Opportunity Zones, Monica L. Keo

Seattle University Law Review

The wealth disparity in the United States is nothing new. Many have proposed wealth taxes and higher tax rates for large corporations to address income inequality; however, these proposals have been criticized as tax programs that are difficult to administer. Congress passed the Tax Cut and Jobs Act (TCJA) in 2017 and created a new investment vehicle known as the Qualified Opportunity Zone (QOZ). The QOZ program incentivizes private investors to invest their capital gains in exchange for a reduction in capital gains tax. The underlying idea of the QOZ program is to utilize a new tool designed to spur …