International and European Tax Law Research Papers (original) (raw)

In international business, competitiveness is the crux of success, which means every effort has to be made to reduce the cost of production and marketing. Every single penny saved matters a lot and adds to an exporter’s global competitiveness. One such area that needs to be looked into is refund of VAT from the business expenses incurred abroad by the international businessmen. Depending upon the size of business, cost reduction through this method may vary from a few hundred or thousand Euros/Dollars to several million Euros/Dollars. These VAT refunds constitute about 2% to 6% of international business travel-related spending and a large corporation which incurs about 6Millionininternationalspendingcouldsaveapproximately6 Million in international spending could save approximately 6Millionininternationalspendingcouldsaveapproximately1,80,000 through this route. It is interesting to note that with substantial funds locked in VAT refunds, as high as 25% in EU, this particular cost of international business remains unexploited and businesses knowingly or unknowingly have been simply booking VAT expenses as costs and ignoring the real potential of making savings by recovering VAT frequently from the authorities. An attempt has been made in this paper to elaborate upon the various aspects of VAT refunds so that the international businessmen may explore the full potential of such a facility and recover their legitimate dues from the foreign governments and become more competitive in global trading. The paper not only describes the concept of VAT with its background particularly with reference to EU VAT legislation but also underscores the VAT rates, details of recoverable VAT expenses and related matters, required documentation and lists out a few VAT recovery agencies such as VAT Recovery Group (VRG), Corporate VAT Management (CVM), American Express and CVM, Deloitte and CVM, Gelco Expense Management (GEM) and (CVM), and CVM and InterplX, etc. which provide VAT refund services to their corporate clients.

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- Business, Economics, International Tax Law, International Business

For VAT purposes, two issues arise when vouchers are used namely whether the
time of supply is when the voucher was issued and imported (in the case of
vouchers issued outside the Republic) into South Africa, or, when a voucher is
exchanged for goods or services; and, secondly, whether VAT must be
accounted for on the discounted amount paid for the voucher or the stated
monetary value of the voucher. This article critically examines the VAT
treatment of vouchers under the VAT Act (as it currently stands) with reference
to the draft Interpretation Note on the VAT treatment of vouchers at a discount.
It further analyses the Draft harmonised EU proposals on the VAT treatment of
vouchers in the EU with a view to seeking a solution to the current South African
uncertainties in respect of the time and value-of-supply rules when vouchers are
issued.

- by SP van Zyl
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- Tax Law, International and European Tax Law

Italy has recently introduced a GAAR in its tax system. While the wording of the clause is not original, considering the experience the other countries might have about it, it is the context in which the provision shall operate that arose the interest of the firs commentators.
The article considers is particular the ways in which it will be arguably applied, taking into account the similar (although tailor-made) regulations that address the phenomenon, and that that have not been repealed by it. Treaty based, EU inspired, special law enacted clauses are still there and may potentially collide with the GAAR, making the overall outcome unpredictable for the Interpreter and for the taxpayer as well.

- by Marco Greggi
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- Taxation, Tax Planning, Tax Avoidance, International and European Tax Law
- by Edouard-Jean Navez
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- Tax Law, International Tax Law, Taxation, International and European Tax Law

L’uscita del Regno Unito dall’Unione Europea rappresenta una storica inversione del percorso che ha portato alla creazione del mercato comune in Europa. Proseguono gli incontri tra le delegazioni per definire i termini del futuro accordo tra l’UE e il Regno Unito, che dovrebbe entrare in vigore il 1° gennaio 2021. Le ripercussioni, che interesseranno cittadini, imprese e amministrazioni, sia nel Regno Unito che nell’UE, spaziano dall’introduzione di controlli alla (nuova) frontiera fino alla validità dei certificati, licenze e autorizzazioni rilasciati dal Regno Unito, passando per il superamento dei principi di libera circolazione delle persone, dei beni, dei servizi e dei capitali.

Nel caso in cui la revisione dell’origine doganale scaturisca da un’indagine Olaf, incombe sulla Dogana l’onere di provare che l’informativa sia direttamente e specificamente riferibile ai beni sottoposti a rettifica.È illegittimo l’accertamento che si limiti a richiamare la documentazione promanante dall’Olaf senza fornire elementi probatori idonei a comprovare l’irregolarità delle specifiche operazioni contestate, in quanto il contribuente ha il diritto di poter contestare integralmente le risultanze dei verbali.

- by Muhammad Yusuf Thohir
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- Taxation, Tax Policy, Tax Evasion, Tax Compliance

This book principally contains a collection of papers that have their origins in a Tax Research Network (TRN) conference paper, revised or extended, from the 2018 and 2019 TRN Conferences, hosted by the University of Birmingham and Preston University, respectively. The conferences were sponsored by the Chartered Institute of Taxation and ICAEW Charitable Trusts.

- by Adrian J Sawyer
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- Taxation, Business Taxation, Tax Policy, Tax Compliance

O presente artigo aborda a tributação de um caso hipotético relacionado à exploração comercial de bitcoins no
Brasil, tendo por objetivo analisar os impactos da constituição de empresas em duas jurisdições no exterior
para exploração, no mercado nacional, da comercialização de bitcoins, assim como as respectivas aplicações das
regras de estabelecimento permanente.

Dos de las principales áreas de estudio afrontadas por BEPS son los precios de transferencia y los intangibles. La acción 8 del Plan de Acción (Guidance on Transfer Pricing Aspects of Intangibles) aunaba esta preocupación y trataba de resolver los principales problemas que suscitaban los precios de transferencia en el ámbito de los intangibles, especialmente entre partes vinculadas. De hecho por todos es sabido que uno de los principales instrumentos al servicio de la erosión de bases imponibles y el traslado de beneficios ha sido la distribución interesada de los beneficios por intangibles de difícil valoración .
En concreto, el documento de la acción 8 publicado originalmente por la OCDE en septiembre de 2014 abordaba importantes cambios en el ámbito de los intangibles, especialmente en las Directrices sobre Precios de Transferencia de la OCDE (Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations) del año 2010. De este modo, mediante modificaciones a los capítulos I, II y VI de este documento la acción 8 pretendía clarificar la definición de intangibles contenida en estas Directrices, mejorar la identificación de operaciones en que estén implicados intangibles y, sobre todo, ofrecer ayuda adicional para la difícil determinación del valor de mercado o principio de plena competencia (arm’s length principle) en las operaciones con intangibles.
De cara a los informes finales del Paquete BEPS, el trabajo en el seno de los precios de transferencia, las acciones 8, 9 y 10, se ha unificado en un único documento final con una lógica común: asegurar que los resultados de los precios de transferencia están en línea con la creación de valor. En la primera fase, concluida en septiembre de 2014, la OCDE publicó los trabajos en relación a la acción 8, cuyo núcleo eran los cambios en los Capítulos I, II y VI de las Directrices sobre Precios de Transferencia de 2010. Posteriormente, a lo largo del año 2015 se han abordado las otras dos acciones sin las cuales el trabajo previo no tendría sentido. Tengamos presente que las fuertes interacciones entre la acción 8 (intangibles) y la atribución contractual de riesgos (acción 9) o las operaciones de alto riesgo o irreales que no existirían entre partes independientes (acción 10) hacían inviable tratar estas cuestiones de forma independiente y aislada .
Las normas de precios de transferencia, establecidas en el artículo 9 de los convenios fiscales basados en los Modelos de Convenio de la OCDE y de la ONU y en las Directrices de Precios de Transferencia, se emplean para determinar, de acuerdo al principio de plena competencia, las condiciones, incluyendo el precio, de las transacciones dentro de un grupo multinacional.
A pesar de ser aprobadas inicialmente en el seno de la Acción 8 de la BEPS lo cierto es que gran parte de las modificaciones introducidas en las Directrices tienen su raíz en un documento publicado dos años antes por la propia OCDE (2 de junio de 2012) en forma de borrador: (Discussion Draft) Revision of the Special Considerations for Intangibles in Chapter VI of the OECD Transfer Pricing Guidelines and Related Provisions en la que se proponían los primeros cambios a las Directrices aprobadas en 2010 . Poco después la OCDE publicó los comentarios recibidos al respecto de este primer borrador .
El 30 de julio de 2013, apenas diez días después de la salida a la luz del Plan de Acción de BEPS, la OCDE abría un nuevo proceso de consulta respecto a una versión revisada de este nuevo Capítulo VI de las Directrices sobre particularidades de los precios de transferencia en materia de intangibles . Como bien indica este documento, desde entonces los avances en este campo se han integrado con el trabajo de BEPS, especialmente con la Acción 8, hasta el punto que la primera versión final de este nuevo Capítulo VI se publicó en 2014 ya en el seno de la misma.
A salvo de los elementos que quedaron pendientes para el año 2015 y que ahora destacaremos, los cambios entre la última versión revisada de las Directrices (2013) y los contenidos en el documento final de la acción 8 (2014) eran mínimos. A pesar de que parezca que estamos ante una novedad relativa, la importancia de los elementos clarificados en el informe final sobre Precios de Transferencia de las acciones 8-10 y la relevancia y sensibilidad del tema tratado, las operaciones con intangibles, merece sobradamente el estudio que abordaremos en este capítulo. Conviene recordar además que esta nueva versión aprobada del Capítulo VI de las Directrices desarrolla de manera mucho más detallada la versión anterior de 2010, multiplicando por cuatro su extensión y afinando con mayor precisión numerosos aspectos conflictivos de este campo .

- by José Miguel Martin Rodriguez
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- Tax Law, International Tax Law, Taxation, Business Taxation

Με την παρούσα επιχειρείται μία συνοπτική και εύληπτη παρουσίαση ενός θεσμού, που έλκει την καταγωγή του από το αγγλοσαξωνικό δίκαιο, του θεσμού του εμπιστεύματος, γνωστού ως “Trust”. Το πρώτο μισό της παρούσας έχει ως στόχο να παρουσιάσει τη βασική δομή του εμπιστεύματος, τα μέρη που το αποτελούν (settlor, trustee, beneficiary), αλλά και τις μορφές, που μπορεί να λάβει ένα εμπίστευμα ανάλογα με τις λειτουργίες, που εκάστοτε εξυπηρετεί. Το δεύτερο μισό πραγματεύεται ένα ζήτημα υψηλής σπουδαιότητας, αυτό της φορολογικής μεταχείρισης του εμπιστεύματος από την ελληνική φορολογική διοίκηση. Πιο συγκεκριμένα, εξετάζεται η φορολογική αντιμετώπιση της δράσης ενός εμπιστεύματος στη χώρα μας αλλά και των μερών, που το απαρτίζουν, τόσο βάσει του Κώδικα Φορολογίας Εισοδήματος (Ν. 4172/2013) όσο και βάσει του Κώδικα Φορολογίας Κληρονομιών, Δωρεών και Γονικών Παροχών (Ν. 2961/2001).

- by Anastasios Georgiadis
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- Law, Tax Law, Taxation, Taxation Law

This work aims to analyze the characteristics of fiscal competition within the framework of both real and financial globalization and its implications in the relationships between states and corporations. It is also the first step in a larger study examining the positive and negative effects of tax competition and bank secrecy competition. In effect, outcomes in fiscal competition are produced by the sum of two different, but related, kinds of competition: tax competition and bank secrecy competition. In terms of the manifestation of tax competition, our analysis points to the phenomenon in which sovereign countries aim to attract both portfolio investments as well as direct investment by lowering their effective tax rate. As for the expression of bank secrecy competition, this paper underlines how legislative provisions allow for a strong bank secrecy regime and effective non-cooperation with foreign fiscal authorities. This, in turn, affects the outcome of fiscal competition in a way that allows " financial havens " to be the winners, by definition, of fiscal competition. Finally, it should be noted that the legislative functions of states are influenced by economic power and, in this scenario, our analysis shows the manner in which the principles of democracy and equality are changing in order to promote economic efficiency. Este estudio pretende analizar las características de la competición fiscal, en el 'framework' de la globalización real y financiera, y sus implicaciones en las relaciones entre estados y empresas multinacionales. Además, eso representa la primera etapa en un estudio más complejo que pretende analizar los efectos positivos y negativos de la competición tributaria y de la competición en el secreto bancario. De hecho, el resultado de la competición fiscal es dado por dos diferentes, pero relacionados, tipos de competición: competición tributaria y " bancaria ". Bajo este primero punto de vista, nuestro análisis intenta revelar el fenómeno por el cual los estados soberanos tratan de atraer sea las inversiones de portfolio sea las inversiones directas a través de la diminución de sus efectivas tasas tributarias. Bajo el perfil de la competición en el secreto bancario, este trabajo subraya como las previsiones legislativas permiten un régimen de fuerte secreto bancario y efectiva non-cooperación con las autoridades fiscales extranjeras. Esto, a su vez, afecta el resultado de la competición fiscal en el sentido que los " paraísos fiscales " resultan ser los ganadores, por definición, de la competición fiscal. Por fin, se debe destacar que las funciones legislativas de los estados son influenciadas por el poder económico e, en este escenario, nuestro análisis muestra como el principio de democracia y equidad están cambiando para favorecer la eficiencia económica. Questo lavoro si propone di analizzare le caratteristiche della competizione fiscale, nel framework della globalizzazione reale e finanziaria, e le sue implicazioni nelle relazioni tra Stati e imprese multinazionali. Peraltro, lo stesso rappresenta la prima tappa di un più complesso studio che si propone di analizzare gli effetti positivi e negativi della tax competition e bank secrecy competition. Di fatti, il risultato della fiscal competition è dato da due differenti, ma relazionati, tipi di competizione: quella più propriamente tributaria e quella " bancaria ". Quanto alla prima, la nostra analisi mira a rivelare il fenomeno per il quale gli Stati sovrani cercano di attrarre sia gli investimenti di portfolio sia gli investimenti diretti esteri attraverso la diminuzione dell'aliquota fiscale effettivamente applicata. Sotto il profilo della competizione nel segreto bancario, questo lavoro sottolinea come le previsioni legislative

- by Salvatore Orlando and +1
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- Criminal Law, Tax Law, International Law, Fiscal policy
- by Sagar Wagh
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- Tax Law, International Tax Law, International Law, Tax reform

The Value-Added Tax Act does not provide for specific place-of
supply-rules. Where these rules have been incorporated into the Act,
they have been couched in vague general terms not designed to meet the
requirements of an electronic era.
In terms of section 7(1)(c) of the VAT Act read with the definition of
‘imported services’ in section 1, VAT must be levied and accounted for
on imported services in so far as the services are ‘utilised and consumed’
in the Republic. The phrase ‘utilised and consumed in the Republic’ is not clear, and
the question arises whether services are utilised and consumed at the
place where they were physically rendered, or where the recipient resides
or conducts its business.
This study is divided into three parts. In the first part, I shall critically
examine the utilised-and-consumed principle with specific reference to
shortcomings in the VAT Act to levy and collect VAT on imported
services. In the second part, the application of the utilised-and consumed
principle under the harmonised VAT rules in the European
Union (EU) will be discussed with the objective of seeking solutions to
the South African problems. This will be followed by my recommendations
and conclusion.

- by SP van Zyl
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- Tax Law, International and European Tax Law
- by Adolfo Martin Jimenez
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- International and European Tax Law

El presente trabajo busca desarollar los aspectos más resaltantes de la fiscalidad de la asistencia técnica prestada por un no residente hacia el Perú, tanto en la legislación doméstica peruana, como en cuanto a su tratamiento en los CDI... more

- by Jesús A. Ramos Angeles
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- Public Finance, International Tax Law, Taxation, Business Taxation
- by Jesús A. Ramos Angeles
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- Tax Law, International Tax Law, Taxation, Tax reform

Se analiza el problema de la pérdida del escudo fiscal por un reparo generado por la autoridad tributaria, sobre los intereses de un financiamiento, en particular, en el caso de las sociedades que toman deuda para apalancar el pago de dividendos. Se explica la razonabilidad de dicha estructura de financiamiento dentro de las finanzas corporativas y como es que ello satisface la causalidad del gasto para efectos tributarios. Finalmente, se expone cómo se ha resuelto esta problemática en la jurisprudencia comparada, específicamente en República Checa, Polonia, Austria e Isreael.

- by Jesús A. Ramos Angeles
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- Finance, Tax Law, International Tax Law, Tax reform

La Corte di Giustizia, con le sentenze del 26 febbraio 2019 (Cause riunite C-115/16, C-118/16, C-119/16, C-299/16 e Cause riunite C- 116/16 e C-117/16) sulle c.d. “cause danesi”, si è pronunciata, tra le altre, sulla nozione di “beneficiario effettivo” contenuta nella Direttiva Interessi e Canoni (DIC), sulla sua applicabilità alla Direttiva Madre e Figlia (DMF) e sulla possibilità di invocare il principio dell’abuso del diritto di matrice comunitaria anche in assenza di una disposizione interna che lo preveda. Due decisioni dai contenuti non sempre lineari, che rischiano di impattare in modo significativo sia nelle strategie di pianificazione dei gruppi multinazionali, sia nell’operatività dei sostituti d’imposta.

- by Luca Bonfanti
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- Tax Law, International Tax Law, Business Taxation, Corporate Income Taxation

Il paper, redatto in lingua inglese, affronta la tematica dell'applicazione delle c.d. "Tie- breaker rules" alle persone fisiche. Nel paper viene analizzata accuratamente ciascuna di tali regole. Nella parte conclusiva vengono svolte... more

- by Pablo Hernández González-Barreda
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- Tax Law, International Tax Law, Taxation, Business Taxation

This study aims to provide feedback to the OECD on its Public Consultation, launched on 8 November 2019, on the specific matters of the Global Anti-Base Erosion (GloBE) Proposal, also known as Pillar Two of the BEPS 2.0 Project, as included in the Public Consultation Document (The “Public Consultation Document on GloBE”).
Some aspects of the latter document have already been the object of a Public Consultation in February 2019. Since the IBFD TFDE has not submitted comments on that specific part of the February Public Consultation, this study also considers issues deriving from that document. Nevertheless, the goal of this study is not to make a comprehensive assessment of GloBE. We will provide that once the initiative reaches its final format.
In our view, the consultation is mostly conducted on the basis of the modus operandi of the income inclusion rule. For the purposes of this study, we will use the same baseline.
The IBFD TFDE comments, as formulated herein, comprise four sections. Following the overall assessment, each section initially indicates the specific point of the Public Consultation Document on GloBE, then elaborates on the content of the main technical proposal by the IBFD TFDE, and finally includes our contribution to the Public Consultation Document on GloBE. The latter constitutes a subordinate option, which the OECD Secretariat may take into account when evaluating possible amendments to its proposal.

- by João Nogueira
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- Tax Law, International Tax Law, International Taxation, EU tax law
- by Rifat Azam
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- International Relations, Tax Law, International Tax Law, International Law
- by edoardo traversa
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- European Law, Tax Law, International and European Tax Law

This essay deals with the question of which rights should be effectively ensured to taxpayers during tax audits, i.e., before any infraction notice is issued, with particular focus on the right to be heard and the right to access documents under the EU Law. An overview of the CJEU case law demonstrates that the taxpayers are not always granted with them. To address this question, two hypotheses are proposed: (i) the restrictions on such rights are often based on the premise that they should be ensured only after the issuance of an infraction notice; and (ii) nevertheless, this premise is not only artificial, but also insufficient to ensure an effective protection of taxpayers’ rights. To demonstrate them, this essay develops both a descriptive analyses of the state of art of the CJEU case law and a normative analysis of why, how and when the right to be heard and to access documents must be ensure to taxpayers in the context of tax audits.

- by Edouard-Jean Navez
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- European Law, Corporate Law, Company Law, EU company law
- by Adolfo Martin Jimenez
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- Law, International Tax Law, International and European Tax Law

Par une décision du 23 juin 2020, Groupe Lucien Barrière, la cour administrative d’appel de Versailles a infirmé le jugement du tribunal administratif de Montreuil du 17 janvier 2019 pour refuser la possibilité d’imputer les pertes définitives d’une filiale européenne liquidée sur le résultat d’ensemble d’un groupe d’intégration fiscale français. La création de la notion de « pertes définitives » par l’exception Marks & Spencer est à l’origine d’une incertitude juridique qui a conduit à des errements jurisprudentiels. À défaut d’harmonisation de la fiscalité directe en droit de l’Union européenne, cette affaire montre la nécessité de clarifier le fondement de la règle de droit à appliquer et de reconnaître l’existence économique du groupe.

This study examines the implementation and effects of the inclusion of financial services in existing EU free trade and association agreements (FTAs) and, in particular, their impact on money laundering, tax evasion and avoidance. The opening analysis outlines the geopolitical and trade context, as well as the EU policy framework to combat money laundering, tax evasion and avoidance. It examines the effects of the ‘Panama Papers’ leaks; assesses the consequences of tax evasion and money laundering and their link to trade in Africa; evaluates the implementation of the EU-Central America Agreement; and provides a synthesis of the key findings and policy recommendations presented in the annexed study. The annexed expertise investigates the implementation and effects of financial services provisions in selected EU FTAs with third countries, with a particular focus on their propensity to curb money laundering, tax evasion and elusion. It concludes that the liberalisation of trade in goods and services with developing countries increases the threat of money laundering, and that it is therefore likely to contribute to an increase in illicit financial flows from developing countries to the EU. The study does not find conclusive statistical data to support a causal link between the EU FTAs that are in force and an increase in illicit financial flows. Nonetheless, the far-reaching commitments made by the EU and the developing countries in the selected EU FTAs regarding access to the markets for goods and services, including in the financial services sector, translate into such agreements significantly increasing trade openness, and hence also the threat of money laundering facing developing countries. To remedy these threats, the study provides a number of policy recommendations.

- by Isabelle Ioannides
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- European Studies, Latin American Studies, International Trade, Colombia

The paper focuses on an exceptional rule, found today in art. 401 of the Recast VAT directive (2006/112/EC) which prohibits Member States to adopt or maintain turnover taxes conducive to compromising the established common VAT system. It presents and analyses the settled case law of the CJEU and examines critically the latter's position as giving the aforementioned rule a very narrow scope which deprives it of much of its effectiveness. The paper supports the thesis that a broader judicial interpretation is both legally possible and welcome in order to ensure the real enjoyment of the currently "dormant" right of private actors not to be taxed by such taxes within the Internal Market. In this vein, the paper, based on a combination of opinions of AGs in the relevant jurisprudence, proposes a two- fold adjustment of the aged "Wilmot" test, aiming at reducing the formalism of the current interpretation and thus giving more scope to this prohibition. However this is only a temporary solution to accommodate concerns of ineffectiveness of the rule, pending the intervention of the Union legislator which should provide a more precise definition of the term "turnover taxes" in article 401 RVD.

- by Thomas E Maris
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- European integration, European Law, Tax Law, International Tax Law
- by Antoni Hanusz
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- Law, Tax Law, International Tax Law, Legal Processes
- by Revista Derecho PUCP
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- Tax Law, International Tax Law, Taxation, Tax Policy

Since approval of the EU General Data Protection Regulation (GDPR) in 2016, it has been widely and repeatedly claimed that a 'right to explanation' of decisions made by automated or artificially intelligent algorithmic systems will be legally mandated by the GDPR. This right to explanation is viewed as an ideal mechanism to enhance the accountability and transparency of automated decision-making. However, there are several reasons to doubt both the legal existence and the feasibility of such a right. In contrast to the right to explanation of specific automated decisions claimed elsewhere, the GDPR only mandates that data subjects receive limited information (Articles 13-15) about the logic involved, as well as the significance and the envisaged consequences of automated decision-making systems, what we term a 'right to be informed'. Further, the ambiguity and limited scope of the 'right not to be subject to automated decision-making' contained in Article 22 (from which the alleged 'right to explanation' stems) raises questions over the protection actually afforded to data subjects. These problems show that the GDPR lacks precise language as well as explicit and well-defined rights and safeguards against automated decision-making, and therefore runs the risk of being toothless. We propose a number of legislative steps that, if taken, may improve the transparency and accountability of automated decision-making when the GDPR comes into force in 2018.

- by Sandra Wachter and +2
- •
- Business Ethics, European History, European Studies, Computer Science

The present research work examines the European Anti-Fraud Office (OLAF) under the profiles of internal governance, organization and counter-crimes activities with cross-border dimension, through cooperation with institutions, European... more

The present research work examines the European Anti-Fraud
Office (OLAF) under the profiles of internal governance,
organization and counter-crimes activities with cross-border
dimension, through cooperation with institutions, European
Agencies and Member States.

This article examines some aspects of the European Union's corporate tax setup which correspond to aspects of a country's corporate tax regime. The overarching question is whether there is such a thing as EU corporate tax law. This article seeks to address this in the context of the following issues: the existence of a uniform tax base and tax rates; the existence of anti-abuse rules and a transfer pricing regime; and, finally, the existence of a common tax administration and its powers. The article questions whether the peripatetic development of EU corporate tax law is suitable for the EU or whether it undermines its long-term objectives. The potential impact of Brexit in the development of EU corporate tax law is also addressed.

- by Christiana Panayi
- •
- EU tax law, International and European Tax Law, Corporate Taxation, State aid

Duplicity is endemic in the international tax regime as each country tries to secure the best deal it can for itself. Developed countries continue to demand standards from developing countries that they refuse to apply to themselves, the kind of thinking which has underpinned their standing in many areas of international relations. For instance, while developed countries continue to condemn the financial services products of many developing countries, accusing them of promoting multinational abuse of the regime by facilitating aggressive tax strategies, developed countries have gradually reduced corporate income tax from the1980s as seen in countries such as France, Germany, Japan, United Kingdom and the United States. The BVI is one offshore financial centre which has been at the forefront of this international condemnation. Despite lack of any legal foundation, hegemonic condemnation and unrelenting attacks against its financial services industry, globally, by blacklisting and threats of blacklisting in the developed world has forced the BVI to adopt measures and implement policies demonstrating its commitment to a transparent and cooperative offshore finance industry. Sceptics are of the opinion that the BVI continues to facilitate the aggressive tax planning strategies of multinationals and high net worth individuals to avoid paying what they deem to be the fair share of taxes of these multinationals and individuals. However, this is misleading as the last few years have shown. The establishment of its financial services commission, financial investigation agency, international tax authority, etc. and the regulations, policies and other initiatives adopted by these bodies demonstrates a clear commitment to transparency and cooperation in an effort to refute its “tax haven” categorization. The result is that today its industry is better regulated than similar industries in economies which dwarf that of the BVI. Nevertheless, the territory has not received its due acknowledgement for all its efforts over the years to develop a highly regulated financial services industry, by creating numerous agencies to regulate the industry and training people to staff these agencies at considerable cost to the territory. The work done by agencies such as the FSC, FIA, ITA demonstrates a clear commitment to good governance, cooperation and transparency. Therefore, it can be said that the BVI surpasses its obligations vis-à-vis its foreign counterparts and condemnation of its financial services sector are largely unwarranted. Thus, rather than condemn the BVI and other offshore financial centres like it, it is the OECD and other international organisations such as the EU, with more resources than the BVI, who should stop playing catch-up and seek to close the loopholes in the international tax regime, used by lawyers and accountants, to facilitate the aggressive tax planning strategies of high net worth individuals and multinational corporations, that border on tax evasion.

Resumen: El presente artículo evalúa y plantea una crítica al Proyecto BEPS de la OCDE. En las primeras tres secciones del artículo se expone la lógica conductual de las empresas multinacionales, el contexto económico en el que se plantea la iniciativa BEPS y el desarrollo de las prácticas fiscales nocivas. En las secciones posteriores se aborda tanto los objetivos y principios del plan BEPS, como una evaluación crítica de su desarrollo. Finalmente, se concluye que el plan BEPS tiene defectos estructurales y funcionales que, aunque lo hacen el mejor esfuerzo contemporáneo para contrarrestar BEPS, es insuficiente para contener las prácticas de planeamiento fiscal agresivo por parte de las multinacionales.
Abstract: This article evaluates and proposes a critique on the OECD’s BEPS Project. In the first three sections of the article behavioral logic of multinational companies are exposed, as well as the economic context in which the BEPS initiative arises and harmful tax practices develop. In subsequent sections we approach the objectives and principles of the BEPS plan and also addressed a critique of its development. Finally, we conclude that the BEPS plan has both structural and functional defects, although they are the best contemporary effort to counter BEPS, it is insufficient to curb multinationals aggressive tax planning practices.
Palabras clave: Traslado de beneficios – Erosión de la base imponible – BEPS – Planificación fiscal agresiva – OCDE
Keywords: Profit shifting – Base erosion – BEPS – Aggressive tax planning – OECD

- by Jesús A. Ramos Angeles
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- Tax Law, International Tax Law, Taxation, Tax reform
- by Jesús A. Ramos Angeles
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- Finance, Financial Economics, Tax Law, International Tax Law
- by Jesús A. Ramos Angeles
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- Tax Law, International Tax Law, International Taxation, Derecho Fiscal

Responding to calls for reallocating taxing rights over multinationals' profits to reflect the place of user value creation, the OECD recently announced a Program of Work to implement international tax reform. I use the European Commission's 2018 proposal to introduce the "significant digital presence" concept into income tax treaties as an example of the type of approach the OECD favors, and argue that it is inferior to recently proposed digital services taxes (DSTs). DSTs directly address the question of where profits should be allocated and taxed, while SDP proposals subordinate this vital question to superfluous treaty conventions. Global tax coordination deserves better focal points.

- by Wei Cui
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- European Law, Tax Law, International Tax Law, International Trade