February 01, 2019 at Georgetown University Law Center, Gewirz Student Center
Join Georgetown Law’s Institute of International Economic Law (IIEL) and the International Tax Policy Forum (ITPF) on February 1st for a conference on the international allocation of rights to taxcross-border income.
Conventions and concepts developed under the auspices of the League of Nations have served as the architecture for international tax relations among developed economies for almost 100 years. Over the last few years, however, historic concepts regarding jurisdiction to tax, attribution of profits to permanent establishments, and arm’s-length transfer pricing have come under pressure. Notable national developments include the UK diverted profits tax, the German royalty barrier, the French and Italian digital services taxes, and the U.S. Base Erosion and Anti-abuse Tax (BEAT), to name just a few.
In a related development, the scope of the Organisation for Economic Co-operation and Development’s (OECD) ongoing study on taxation of the digitalizing economy has broadened to encompass a fundamental reexamination of the allocation of taxing rights, including a proposal that would establish a minimum tax on the income earned by the foreign affiliates of domestic companies and proposals that would increase taxing rights of market countries.
The 2017 U.S. tax reform both increases U.S. taxation of certain low-taxed income earned by the foreign affiliates of U.S. companies (i.e., the residence-based Global Intangible Low-Taxed Income rules, or GILTI) and increases U.S. taxation of income earned by foreign companies in the provision of services abroad for related U.S. parties (i.e., the source-based BEAT rules).
This conference brings together experts from academia, government, and private practice to share their views on challenges to the international income tax architecture. The closing panel will consider how governments might realistically move forward in an environment where international economic cooperation is under strain.