TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Tuesday, November 26, 2013

Rosenzweig Reviews Marian's Jurisdiction to Tax Corporations

JotwellAdam Rosenzweig (Washington University), Once a U.S. Corporation, Always a U.S. Corporation (Jotwell), reviewing Omri Marian (Florida), Jurisdiction to Tax Corporations, 54 B.C. L. Rev. 1613 (2013).

Prof. Marian rejects the bright-line, all-or-nothing rules leading to the “once a U.S. corporation always a U.S. corporation” result. Instead, he proposes replacing the regime with an instrumentalist one. This involves a two-step approach: (1) determine the underlying normative goal of the corporate tax, and (2) implement whatever residency rule accomplishes that underlying goal. ...

Ultimately, however, this is a theoretical article and on that front it succeeds. I am in agreement with the conclusion, which states “Obviously, the model developed is not exhaustive, in the sense that it cannot possibly consider all possible purposes for which different countries choose to tax corporations. But its strength is in its flexibility to consider new purposes and interactions of various purposes in the specific contexts of each jurisdiction. As such, the model can provide guidance even with respect to purposes of corporate taxation not explicitly considered herein.”

This article establishes itself as part of a promising trend in international tax scholarship, one I hope more scholars pursue going forward.

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