2023

This article examines the United States' position as the world’s leading tax haven, highlighting its provision of secrecy and low or zero tax rates for nonresident aliens. It discusses how these features align with the defining characteristics of tax havens, making the U.S. a significant player in the global landscape of tax avoidance and financial opacity.

This article explores how the US global intangible low-taxed income (GILTI) regime creates tax asymmetries that influence foreign investment incentives. It provides empirical evidence showing that US multinational enterprises reduce foreign operational risks by consolidating operations in foreign headquarters, particularly in developing countries, as a response to GILTI’s taxation of volatile foreign cash flows. The findings suggest these tax-induced costs do not lead to significant policy benefits, such as reductions in foreign intangible assets. The article’s insights are relevant for potential reforms to GILTI and the implementation of the OECD's global tax framework.

This article evaluates the new UN framework convention for international tax cooperation, examining its structure, objectives, and potential impact on global tax governance.

This article examines the controversies surrounding the implementation of the OECD's Pillar Two rules in corporate taxation, highlighting their rising prominence on business and political agendas. It frames Pillar Two as a potential flashpoint for international tensions and societal distrust in governance and taxation systems, based on insights shared during a tax practitioners' meeting in Amsterdam on May 30, 2024.

This article addresses the transformative impact of economic digitalization on international tax, focusing on proposed OECD/G20 Inclusive Framework changes that would shift taxing rights across jurisdictions and affect various industries. It examines the implications of these rules for both taxpayers and tax authorities, highlighting how the reallocation of taxing rights might alter the global tax landscape.

This article examines the international tax complexities associated with business profits in the digital economy, focusing on cloud computing services. It analyzes challenges related to the OECD Model Convention (2017), the EU’s proposed Directive on Significant Digital Presence, and the OECD Secretariat's "Unified Approach" under Pillar One. Through these frameworks, the article explores how digital business models, such as cloud computing, present unique issues for profit allocation and taxing rights across jurisdictions.

This article examines the concept of value creation as introduced in the OECD/G20 BEPS Actions, noting its ambiguous and often controversial interpretation that may conflict with existing tax treaties. It discusses the challenges this principle poses for developing coherent international tax policy and for interpreting and applying tax treaties effectively.

This article analyzes the OECD/G20 program addressing tax challenges from the digitalization of the economy, noting the partial shift away from the arm's length principle. It explores two approaches to minimum taxation, assesses barriers to international tax coordination, and considers the implications these developments may have on national tax policies.

This article explores how the OECD's Multilateral Instrument (MLI) influences the interpretation of international tax rules, examining its potential to reshape treaty application and interpretation in cross-border tax matters.

This article addresses the challenges traditional tax rules face with digital business models that require little or no physical presence in customer jurisdictions. In response, several countries have enacted digital services taxes (DSTs) to capture revenue from digital businesses. The OECD/G20 Inclusive Framework seeks to reform these outdated rules through Pillar One, granting more taxing rights to market jurisdictions, but Pillar One has also introduced new uncertainties. The article suggests that rather than relying solely on Pillar One, the OECD could guide DST coordination among jurisdictions, supporting market states' taxing rights while reducing double taxation risks for multinational enterprises.

This article examines the challenges of international double taxation on cross-border services, particularly the complexities in tax treaty allocation rules that create uncertainty and opportunities for tax arbitrage. Business services, often managed through transfer pricing or dedicated service clauses, exemplify these issues. While transfer pricing can yield precise results without expanding tax treaty clauses, it requires substantial resources that may burden developing countries disproportionately. This raises a policy dilemma on whether the solution lies in refining norms, improving enforcement, or both. The article also questions whether developing countries should bear the cost of aligning with global transfer pricing standards or if developed nations should contribute more to capacity-building efforts.