scholarly journals ENGLISH UKRAINIAN LEXICON OF INTERNATIONAL TAX TERMS

2021 ◽  
Author(s):  
Arne Ruben Edmund Jakobsson ◽  
◽  
Oksana Romanovna Stepanenko ◽  
Valentyn Valentynovych Verovkin ◽  
◽  
...  
Keyword(s):  
Economic Activity ◽  
Tax Planning ◽  
Tax Law ◽  
Profit Shifting ◽  
The Future ◽  
Planning Strategies ◽  
International Tax

The proposed glossary is based on terms from the International Glossary of Tax Terms, the OECD Glossary of Tax Terms, the Glossary of Financial and Investment Terms and websites of the Tax Agencies. This dictionary contains the most commonly used terms in the tax field and has about 1600 terms that are of interest to both researchers and professionals in this field. We have paid special attention to the phenomenon that is currently only being implemented in Ukraine, namely the concept of “Base erosion and Profit Shifting” (BEPS), which refers to tax planning strategies that use gaps and inconsistencies in national and international tax law to artificially transfer profits to low- or zero-tax areas where economic activity is low or non-existent. In the future, it is planned to create a Swedish-Ukrainian dictionary of tax terms, which will contain more dictionary entries and help future professionals in this field.

scholarly journals Permanent establishment as a foreign direct investment in Poland: identification of tax barriers in the context of new tax development

2021 ◽  
Vol 57 (2) ◽  
pp. 177-193
Author(s):  
Marcin Jamroży ◽  
Magdalena Janiszewska
Keyword(s):  
Foreign Direct Investment ◽  
Economic Activity ◽  
Direct Investment ◽  
Business Models ◽  
Tax Avoidance ◽  
Tax Law ◽  
Profit Shifting ◽  
New Developments ◽  
Permanent Establishment ◽  
International Tax

Abstract The paper aims to identify the significant tax barriers to foreign direct investment (FDI) in Poland, in particular in the form of a permanent establishment (PE), in the context of new developments in international tax law. Due to the recommendations of the Base Erosion and Profit Shifting (BEPS) project, launched by Organisation for Economic Co-operation and Development (OECD) to prevent international tax avoidance, the understanding of PE has changed, which could lead to changes in business models. The purpose of the research is also to identify the significant tax barriers to economic activity in Poland, in particular in the form of PE, against the international tax law context. The study conducted by the authors relies on the most current tax rulings and judgments of administrative courts issued between 2017 and 2020. It is concluded that not so much the effective tax burdens but the regulatory ambiguity surrounding the tax obligations may contribute to the reduction of Poland's attractiveness as a location for FDI.

scholarly journals Problems of Base Erosion and Anti-Abuse Tax

2020 ◽  
Vol 5 (4) ◽  
Author(s):  
James G. S. Yang ◽  
Leonard J. Lauricella
Keyword(s):  
Multinational Corporations ◽  
The United States ◽  
Tax Planning ◽  
Tax Law ◽  
Planning Techniques ◽  
Tax Base ◽  
Planning Strategies ◽  
International Tax ◽  
Jobs Act ◽  
Interest Expense

The United States (U.S.) has a new tax law known as The Tax Cuts and Jobs Act of 2017 (TCJA) [1].  It imposes many new provisions dealing with international tax from a U.S. perspective, including several that were designed to prevent the erosion of the U.S. tax base.  This article discusses the reasons for these new anti-base erosion provisions and explains how they work.  It points out some of the international tax planning techniques used by U.S. and other multinational corporations to shelter income from high taxes.  It discusses the temporary and in some cases permanent disallowance of deductions for interest expense, the disallowance of royalty expenses, and the new base erosion and anti-abuse tax (BEAT).  This paper also presents examples and offer tax planning strategies.

scholarly journals Revisiting the Case of Customary International Tax Law

2021 ◽  
Vol 23 (1) ◽  
pp. 79-103
Author(s):  
Dirk Broekhuijsen ◽  
Irma Mosquera Valderrama
Keyword(s):  
International Law ◽  
International Taxation ◽  
Customary Law ◽  
Tax Law ◽  
Profit Shifting ◽  
Customary International Law ◽  
The Creation ◽  
International Tax

Abstract Customary international tax law has traditionally not received a lot of acclaim in international tax law literature. However, the infrastructure of international tax law is becoming increasingly multilateral. The recent adoption of the Multilateral Instrument and the creation of the Inclusive Framework, two initiatives related to the OECD/G20 Base Erosion and Profit Shifting Project, have accelerated the width of cooperation on international tax matters. For that reason, the authors (re)consider the existence of customary international law in the area of international tax law. They conclude that, perhaps contrary to the intuition of tax lawyers, the evidence in favour of customary international tax law is building up. The question whether customary law exists within the area of international taxation is therefore not misplaced.

scholarly journals The Wealth Defence Industry: A large-scale study on accountancy firms as profit shifting facilitators

2019 ◽  
Author(s):  
Lena Ajdacic ◽  
Eelke Heemskerk ◽  
Javier Garcia-Bernardo
Keyword(s):  
Multinational Corporations ◽  
Large Scale ◽  
Tax Planning ◽  
Professional Service ◽  
Service Firms ◽  
Professional Service Firms ◽  
Profit Shifting ◽  
Defence Industry ◽  
Planning Strategies ◽  
Big Four

Corporations increasingly engage in innovative ‘tax planning strategies’ by shifting profits between jurisdictions. In response, states try to curtail such profit shifting activities while at the same time attempting to retain and attract multinational corporations. We aim to open up this dichotomy between states and corporations and argue that a wealth defence industry of professional service firms plays a crucial role as facilitators. We investigate the subsidiary structure of 27,000 MNCs and show that clients of the Big Four accountancy firms show systematically higher levels of aggressive tax planning strategies than clients of smaller accountancy firms. We specify this effect for three distinct strategies and also uncover marked differences across countries. As such we provide empirical evidence for the systematic involvement of auditors as facilitators in corporate wealth defence.

Direct Taxation and E-Commerce

2012 ◽  
pp. 26-48
Author(s):  
Subhajit Basu
Keyword(s):  
Economic Activity ◽  
International Level ◽  
Tax System ◽  
Direct Taxation ◽  
The Future ◽  
Tax Systems ◽  
International Tax ◽  
The Right ◽  
Specific Tax

E-commerce poses significant challenges for existing tax rules. One of the most important effects of e-commerce has been to de-emphasise the significance of the place where economic activity is carried out, which makes it difficult to determine which jurisdiction has the right to tax. It has also blurred the traditional distinction between the form of delivery and the substance of what is delivered. Thus, the specific tax implications of e-commerce and the threat it imposes on the established tax systems can be examined by reference to how much e-commerce tends to disrupt the concepts and principles of direct taxation and international tax treaty rules. This article explores the effect of e-commerce on the principles of direct taxation. The question is should the tax system of the future be developed at a national or an international level?

Direct Taxation and E-Commerce

2010 ◽  
Vol 1 (1) ◽  
pp. 37-63
Author(s):  
Subhajit Basu
Keyword(s):  
Economic Activity ◽  
International Level ◽  
Tax System ◽  
Direct Taxation ◽  
The Future ◽  
Tax Systems ◽  
International Tax ◽  
The Right ◽  
Specific Tax

E-commerce poses significant challenges for existing tax rules. One of the most important effects of e-commerce has been to de-emphasise the significance of the place where economic activity is carried out, which makes it difficult to determine which jurisdiction has the right to tax. It has also blurred the traditional distinction between the form of delivery and the substance of what is delivered. Thus, the specific tax implications of e-commerce and the threat it imposes on the established tax systems can be examined by reference to how much e-commerce tends to disrupt the concepts and principles of direct taxation and international tax treaty rules. This article explores the effect of e-commerce on the principles of direct taxation. The question is should the tax system of the future be developed at a national or an international level?

scholarly journals TAX MORALITY: EXAMINING THE BEPS DEBATE, WORK OF THE OECD AND ITS IMPACT ON AFRICA

2017 ◽  
Author(s):  
Daniel Godson Olika
Keyword(s):  
Multinational Corporations ◽  
Transfer Pricing ◽  
Tax Rates ◽  
Profit Shifting ◽  
The Public ◽  
Pricing Rules ◽  
Planning Strategies ◽  
International Tax ◽  
Harsh Criticism ◽  
The Impact

International tax issues have never been at the forefront of international politics as they are today. This is due in large part to the realization that the current international tax system in existence allows multinational corporations to plan their taxes in such a way that they will be able to pay little or no taxes at all. They are able to do this through certain loopholes and gaps that currently exist in the system. These loopholes and gaps are seen as creating opportunities for taxpayers who are involved in cross-border activities to aggressively structure their activities to mitigate potential tax exposure or achieve no tax liabilities. They do this by exploiting; the hybrid-mismatch arrangements, shortcomings of the transfer pricing rules in jurisdictions where they operate and shifting profits from countries where their profits are made to countries with low tax rates. Consequently, some multinationals pay as little as five percent in corporate taxes, even as smaller domestic businesses pay up to 30 percent. The result of this activity is what is known as; base erosion and profit-shifting (BEPS) and it has the potential to deprive all countries of significant tax revenues. This rave debate and harsh criticism from the public influenced the intervention of the Organisation for Economic Co-operation and Development (OECD) to start its now famous BEPS Project. The OECD BEPS Project aims to provide governments or tax administrators with clear international solutions for fighting aggressive corporate tax planning strategies that artificially shift profits to locations where they are subjected to more favourable tax treatment. This paper shall address the various strands of the BEPS debate, the OECD BEPS project, the impact of the project in Africa and Nigeria. The next section shall address the various strands of the debate.

scholarly journals The results of implementation of european requirements in management of transfer pricing audit (experience of Ukraine)

2020 ◽  
Vol 11 (9) ◽  
pp. 2417
Author(s):  
Valeriia Fesenko ◽  
Olena Vakulchyk ◽  
Olexandr Guba ◽  
Serhii Ostapchuk ◽  
Iryna Babich
Keyword(s):  
Control System ◽  
Cost Effectiveness ◽  
Economic Activity ◽  
Transfer Pricing ◽  
Tax Planning ◽  
The State ◽  
Income Taxation ◽  
State Control ◽  
Profit Shifting ◽  
Current Trends

Since 2017 four of fifteen steps of the BEPS plan (base erosion and profit shifting) have been introduced in Ukraine to resist various areas of aggressive tax planning. The implementation of the BEPS plan is primarily made through frame working a transfer pricing control system in Ukraine, which aims to reduce illegal tax sheltering through foreign economic transactions with interdependent or interested parties as well as through transactions with contractors that are registered or make business in low-tax jurisdictions. The purpose of this study is to evaluate the results of implementation of European requirements in the system of audit of foreign economic activity in Ukraine. The study is based on data from the State Statistics Committee of Ukraine, the State Fiscal Service of Ukraine for 2015-2019.The article identifies the amounts of Ukrainian exports (imports) to (from) low-tax jurisdictions, analyzes the controlled exports and imports by geographical segment. The study presents evidence of the use of transfer pricing mechanisms by Ukrainian companies to optimize income taxation, which is contrary to the interests of the state. Therefore, a special need consists in improvement of the state control over operations of the foreign economic activity. The changes and current trends in foreign economic operations during the implementation of transfer pricing controls since 2013 in accordance with the BEPS plan were examined. This study proves that immediately after expanding the list of low tax jurisdictions, there has been a significant fall in the volume of controlled exports and imports, which we regard as a loss of cost-effectiveness of trade operations through low tax jurisdictions due to increased controls and enlarged list of territories, transactions through which are under strict control.

Concept of Beneficiary Owner (Proprietor) in Tax Law

10.12737/6585 ◽  
2014 ◽  
Vol 2 (12) ◽  
pp. 0-0
Author(s):  
Инна Хаванова ◽  
Inna Khavanova
Keyword(s):  
Law Enforcement ◽  
Case Law ◽  
Tax Planning ◽  
Tax Law ◽  
Beneficial Ownership ◽  
History Of ◽  
The Russian Federation ◽  
Concept Application ◽  
International Tax ◽  
To Receive

The concept of beneficial ownership draws the increasing attention because it´s widely used by the international holding structures for tax planning. The author analyzes the concept of beneficial ownership in the tax law taking into account new Russian legislative initiatives and law-enforcement practice. The article touches upon the history of this concept, its content in the international tax law, peculiarities of the ratio of national and international tax law norms, questions of concept application and usage of the term «the person having the actual right to receive the income» in conventions for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. The author concludes that inclusion of the term «the actual addressee (beneficial owner) income» in the Tax code of the Russian Federation for the purposes of the application of the Double tax agreements by itself will not provide for the effective application of the concept which is a result of expert development, carried out within the Organization for Economic Co-operation and Development (OECD) and also case-law of the leading states. The author concludes that there´s a necessity for the scientific researches taking into account the specificity of the Russian legal system, defining the directions of tax and legal researches.

scholarly journals BEPS principal purpose test and customary international law

2020 ◽  
Vol 33 (3) ◽  
pp. 745-766
Author(s):  
Irma Johanna Mosquera Valderrama
Keyword(s):  
International Law ◽  
Public Law ◽  
Political Support ◽  
Tax Law ◽  
Profit Shifting ◽  
Customary International Law ◽  
Arm’S Length Principle ◽  
State Practice ◽  
Subjective Element ◽  
International Tax

AbstractThe overall aim of this article is to analyse the principal purpose test as an emerging rule of customary international tax law. By means of the principal purpose test, the tax administration can deny the tax treaty benefit if one of the principal purposes of the action undertaken by the taxpayer was to obtain a benefit. This principal purpose test has been developed by the OECD with the political support of the G20 as one of the actions to tackle Base Erosion and Profit Shifting by multinationals (BEPS Project). At the time of writing, 137 jurisdictions including non-OECD, non-G-20 countries have committed to the implementation of the principal purpose test in their current and future tax treaties. Based on the analysis of the objective element (state practice) and subjective element (accepted as law), there are indications that this principal purpose test can emerge as a principle of customary international law. In the past, international tax law scholars addressed the customary international law regarding the OECD/UN tax treaty Models, the OECD Harmful Tax Practices, and the arm’s length principle. However, current international tax developments, including the BEPS Project, call for an analysis of the main elements of customary international law in respect of the principal purpose test, a general anti-avoidance rule that by its own nature, is often general, vague, and imprecise. Therefore, the findings of this article can be useful for generating new areas of research by international public law, international law, and international tax law experts.

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