Saturday, March 8, 2014
The World Tax Journal has published Vol. 6, No. 1 (2014):
- Pasquale Pistone, Coordinating the Action of Regional and Global Players during the Shift from Bilateralism to Multilateralism in International Tax Law: "The editor introduces this issue of the World Tax Journal with a contribution that welcomes the BEPS project as a significant step in the transition from bilateralism to multilateralism in international taxation. The broad-based consensus and participation in setting the BEPS standards make such project an enhanced form of multilateralism if compared with that which allowed the Global Forum on Fiscal Transparency to implement the standards developed by a more limited number of countries. The contribution of the editor also addresses how global multilateralism relates with regional multilateralism in some areas of the world, such as the European Union, calling for a stronger cooperation among the institutional players within a coordinated framework for the exercise of taxing powers in cross-border situations that could give rise to global international tax law."
- Yariv Brauner, BEPS: An Interim Evaluation: "The article evaluates the OECD BEPS Action Plan and recent progress in light of the key insights of the BEPS: (i) progress can be achieved solely through cooperation, and the existing competition based, unilateral action dominated paradigm is destined to fail; (ii) a comprehensive, holistic approach rather than ad hoc fix-ups is needed for a chance of success; and (iii) some innovations differing from the tradition that is the base for the current regime may be required in order to tackle the evolving new challenges that the regime faces. The article points to the promising aspects of the plan and to the areas where progress seem wanting. It further provides observations on certain steps that the OECD can and should take to increase the chances of success of the BEPS project."
- Chloe Burnett, Intra-Group Debt at the Crossroads: Stand-Alone versus Worldwide Approach: "Cross-border intra-group debt represents a significant proportion of total global monetary flows. Responding to tax base erosion from related party interest deductions, countries have introduced domestic rules against “interest stripping” but the heterogeneity of these rules leads to double taxation and double non-taxation. The OECD’s 2013 Base Erosion and Profit Shifting (BEPS) Action Plan endorsed by the G20 identifies debt deductions as “Action Item 4”, for reform by the end of 2015. This article surveys the existing approaches, from “stand-alone” to “worldwide ratio” rules. The author concludes that the worldwide approach is preferable, and recommends that more countries adopt such a rule, limiting the local leverage ratio to the third-party leverage ratio of the worldwide group. Such a rule is principled, given the fungibility and other unique features of finance, can draw upon existing rules in three countries and achieves the BEPS project aim of eliminating a large capacity for profit shifting."
- Marcel G.H. Schaper, A Computational Legal Analysis of Acte Clair Rules of EU Law in the Field of Direct Taxes: "What rules of EU law in the field of direct taxes are clear and can be applied at the national level without additional interpretative guidance of the Court of Justice of the European Union (CJEU)? This article applies computational methods, and network science in particular, to analyse which rules of EU law in the field of direct taxes may be considered “clear”. The aim of this article is to find units of information which have replicated through repeated application in the CJEU’s rulings and are thus dominant in this functional field of EU law. All 185 rulings handed down by the CJEU in the field of direct taxes in the period between 1983 and 2012 are analysed. The product of this research is reported in the Annex in which the most important settled and well-established rules of EU law in the field of direct taxes are organized in a legally relevant manner."