2023

This article explores significant inconsistencies in treaty law that have weakened the international tax regime, drawing on perspectives from public international law and survey data from treaty negotiators. It suggests that effective reform should incorporate greater formality, enhanced multilateral components, and the establishment of an independent tax forum to strengthen the regime.

This article examines the international tax challenges associated with private equity funds (PEFs), which are increasingly significant players in global mergers and acquisitions and capital markets. PEFs often avoid entity-level taxation through pass-through structures, enabling investors to reduce tax liabilities, particularly through low capital gains rates on carried interest. The article critically assesses whether PEF investments should be classified as active or passive, which could shift the primary taxing jurisdiction for cross-border income, including carried interest. It further explores tax neutrality issues, noting that while PEFs achieve tax neutrality domestically, international investments may result in over- or under-taxation due to the lack of multilateral pass-through rules. The article ultimately discusses strategies to improve tax neutrality in cross-border PEF investments.

This article assesses the potential tax burden across OECD countries from 2000 to 2021 using both Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) to evaluate tax capacity. The study identifies countries close to their potential tax capacity versus those further from it, determining whether they might sustain a higher or lower tax burden relative to comparable nations. Results indicate that countries like Belgium, Colombia, Finland, France, Italy, Latvia, the Slovak Republic, and Sweden consistently operate efficiently near their tax capacity frontier.

This article addresses the existential challenges facing the international tax regime (ITR) in the 21st century, focusing on the "trilemma" of balancing liberal democracy, national self-determination, and economic globalization. To tackle these conflicting forces, the article proposes a new global tax governance model that meets the UN's 2023 framework guidelines for international tax cooperation and aligns with the OECD/G20 BEPS Project.

The model is structured as two concentric circles representing an ecosystem with both top-down and bottom-up governance. The top-down aspect resembles a bicameral legislative structure, creating standardization agreements under UN oversight, while the bottom-up element adopts a pledge-and-review approach inspired by the Paris Agreement. This dual framework aims to integrate global tax governance through repeated cooperation, balancing consensus with voting, and ensuring fair stakeholder representation across the global North and South. The theoretical foundation draws on a two-sided platform perspective from antitrust and international law.

This article analyzes how di¤erences in production technology, nancial frictions, time discount rates, and tax policies collectively determine the long-run asset positions and wealth distribution between countries. It contributes to understanding how national policies and economic factors shape global wealth patterns over time.

This article highlights Nigeria's potential to diversify its economy and drive innovation through its expanding youth population and digital ecosystem. To capitalize on these opportunities, the country needs to implement a swift and adaptive taxation strategy. Addressing the challenges of taxing the digital economy, Nigeria is exploring innovative solutions, including revising international tax rules and adopting digital-first policies. This proactive approach positions the nation to shape its economic future in the digital era.

This study examines corporate inversions, where multinational enterprises relocate their global ultimate owner (GUO) to another jurisdiction, complicating the identification of MNEs' country of origin and foreign subsidiaries. Using data from over 52,000 MNEs across 30 nations, the study hypothesizes that emerging market MNEs (EMNEs) and larger MNEs with extensive foreign networks are more likely to invert. The findings confirm this, highlighting differences between inverted and non-inverted MNEs, which can lead to sampling biases in research. The study suggests methodological adjustments to improve the accuracy of cross-country MNE analyses.

This article analyzes the potential negative effects of raising corporate tax rates, focusing on Kamala Harris's proposal to increase the U.S. corporate tax rate from 21% to 28%. It draws on examples from the Trump administration's tax cuts and international case studies from Ireland, Germany, and the UK. The article highlights the risks to business investment, job creation, and economic growth, noting that while higher taxes can increase public revenue, they may also discourage investment, reduce competitiveness, and hinder long-term growth. The analysis underscores the need for policymakers to balance revenue generation with maintaining a healthy business environment.

This article examines the European Union's (EU) external tax policies regarding 'uncooperative' tax jurisdictions, focusing on the role of the Court of Justice of the European Union (CJEU) case law, domestic tax laws of Member States, and the EU's blacklist of non-cooperative jurisdictions. By contextualizing the EU blacklist with relevant CJEU case law on anti-avoidance and anti-abuse provisions, the article highlights three key conclusions: the blacklist's soft law nature allows Member States to exploit anti-avoidance provisions; its failure to meet objectives is due to EU political dynamics; and it addresses symptoms rather than fundamental flaws in the international tax system.

This article addresses disputes between contracting states over the interpretation of terms in bilateral tax treaties, which can lead to conflicts over sovereignty and decision-making authority. Dr. Dhruv Janssen-Sanghavi reviews existing dispute resolution mechanisms and proposes a new approach that incorporates a greater role for the judiciary in resolving these conflicts.

The tax rules for foreign investors in the U.S. provide highly favorable treatment, with most foreign investors paying no U.S. tax on passive investments. These rules are based on the outdated assumption that the U.S. needs foreign capital to bridge the gap between domestic savings and investment. However, global financial capital is abundant due to regressive policies abroad, leading to excess foreign savings that have fueled unproductive consumption in the U.S., contributing to financial instability and a growing trade deficit. The article advocates for reforming U.S. inbound tax rules by increasing taxes on foreign investment to address these issues.