TaxProf Blog

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

Tuesday, January 8, 2019

Fleming: Customary International Law And Tax Rates

J. Clifton Fleming (BYU), To What Degree Does Customary International Law Require Accommodation of a Source Country's Right to Tax High, Tax Low, or Not Tax at All?:

If source country income tax exceeds residence country income tax, customary international law does not require a residence country to reimburse its residents for the excess even though failure to reimburse interferes with the source country's right to tax high.

Where residence country income tax exceeds source country income tax, customary international law does not prohibit a residence country that employs a foreign tax credit from collecting a residual tax even though the residual tax interferes with the source country's right to tax income low or not at all.

https://taxprof.typepad.com/taxprof_blog/2019/01/fleming-customary-international-law-and-tax-rates.html

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Comments

Sooo...a country might have to justify its tax to...*the taxpayers?*

Aaannd...an individual might be called on to pay tax for the privileges and protections of residence (or citizenship) beyond the costs of supporting a particular item of income?

Seems fine to me, though if he (or she) isn't free to participate in the debate about how much tax his country should charge and if it should have a foreign tax credit or deduction or whatnot there's a bigger problem than taxes afoot.

Posted by: Anand Desai | Jan 9, 2019 10:04:18 PM

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