Dealing with the Fragmented International Legal Environment (eBook)

190784_1_En_BookFrontmatter_OnlinePDF 1
190784_1_En_1_Part_OnlinePDF 15
190784_1_En_1_Chapter_OnlinePDF 17
1: Differentiation Between Direct and Indirect Taxes 17
Background 17
The Distinction Theoretically 18
The Issue 19
Other Factors 23
Direct and Indirect Taxes: Basic Meaning 25
Tax Definition 25
Direct and Indirect Taxes: MeaningsThe US Constitution creates ``two classes: one `direct´ taxes required to 26
General Differentiations 27
Directness 28
Choices 28
Transparency 29
Fairness 29
Tax Incidence 31
Scholars´ Views on the Differentiation 33
Institutional Views 33
Concluding Observations 35
References 36
190784_1_En_2_Chapter_OnlinePDF 38
Chapter 2: The Cases 38
Actual Problems: The Cases 38
The GATT Cases 39
Belgium Family Allowance 40
The Domestic International Sales Corporation 41
Foreign Sales Corporation 46
The Extraterritorial Income Exclusion 48
Observations 49
Potential Hypothetical Problems 50
Summary and Analysis 55
References 57
190784_1_En_3_Chapter_OnlinePDF 59
3: Tax and Religion: Saudi Arabia Tax System 59
The Dilemma 59
The Legal Texts 61
Saudi Arabian Tax System 62
The Conflict with the WTO 67
Possible Solutions 69
Ignoring International Practice 69
WTO Exception Articles 70
Public Morals 71
Necessary 75
Saudi Arabia and Public Morals 76
Ignoring Zakat Alternative 76
Conclusion 78
References 78
190784_1_En_2_Part_OnlinePDF 80
190784_1_En_4_Chapter_OnlinePDF 82
4: Literature Review 82
The Exclusion Approach 83
Partial Tax Inclusion Approach 89
International Tax Organization Approach 92
Undetermined Approaches 96
Treating Tax Issues Through Trade Regimes 96
(How) Should Trade Agreements Deal with Income Tax Issues? 99
Income Tax Discrimination Against International Commerce 101
Concluding Remark 103
References 103
190784_1_En_5_Chapter_OnlinePDF 105
5: Sovereignty 105
Sovereignty Basic Meaning 105
Why Is It Important to Study the Issue of Sovereignty? 106
The Meaning of ``Sovereignty´´ 107
Sovereignty Applications 108
Existence of Sovereignty 110
Sovereignty and Tax 110
Is Sovereignty an Acceptable Excuse? 112
The EU Income Taxation Integration Experience 113
The Role of the ECJ 114
The Cases 115
Opening Pandora´s Box 117
Warren and Graetz 117
Lessons Learned 119
History of the Interaction Between International Trade and Tax 120
Observations 148
References 148
190784_1_En_6_Chapter_OnlinePDF 153
6: WTO Agreements 153
I. The GATT 153
Introduction 153
The Vienna Convention 154
GATT Text 155
Most Favored NationSee Lansing and Rose (1984, p.329) Snyder (1948, p.10). Mintz (2001). See O´Brien (1
Article I: Most-Favored-Nation Treatment 155
Meaning and Purpose 156
``Charges´´ 156
``In connection´´ 156
``With respect to the method of levying such duties and charges´´ 157
``With respect to all rules and formalities in connection with importation and exportation´´ 157
``And with respect to all matters referred to in paragraphs 2 and 4 of article iii´´ 157
``Any advantage, favor, privilege or immunity granted by any contracting party to any product originating in or destined 157
Further MFN Difficulties 158
National Treatment on Internal Taxation and Regulation 160
Analyzing the Legal Text 160
Purpose 161
Internal Taxation and Direct Taxation 163
The Article Wording 168
``Internal taxation and other internal charges´´ 168
``And laws, regulations and requirements´´ 168
``Affecting the internal sale, offering for sale, purchase´´ 168
``Should not be applied to imported or domestic products´´ 169
``So as to afford protection to domestic production´´ 170
Article III:2 170
Determining What Constitutes a Violation 174
Article III:4 174
Concluding Remarks 176
II. GATS and Tax 176
Introduction 176
Scope 177
Significance 178
Modes of Supplies 179
Obligations 182
Transparency 182
Specific Commitments 183
GATS and Tax 184
Tax Negotiations in the GATS Treaty 185
The Dilemma 185
The US Resistance 186
The Final Agreement 188
Relevant Legal Texts 188
Most Favoured Nation 188
National Treatment 190
Article XIV: General Exceptions 192
The Chapeau 192
Measures Permitting Violation 196
Article XXII 199
Subsidies 201
Introduction 201
SCM General 202
Subsidies Categories 203
Specification 204
Prohibited Subsidies 204
Actionable Subsidies 205
Non-actionable Subsidies 205
Tax and Subsidies 206
Article 3 206
Footnote 59 207
Tax Deferral 208
Transfer Pricing Issues 208
Tax Disputes 208
Foreign Source Income 209
Footnote Status 210
Identifying the ``Bad´´ Tax 211
Conclusion 215
References 216
190784_1_En_3_Part_OnlinePDF 219
190784_1_En_7_Chapter_OnlinePDF 220
7: The Tax Agreement Option 220
Introduction 220
Tax Agreement Features 221
Multilateral Tax Treaty´s Previous Suggestions 223
Tax Convention Models 225
Why Have Tax Treaties Not Been Combined Previously? 226
Changed Circumstances 228
WTO Suitability 231
Subjects for Inclusion 235
WTO Tax Department 237
Possible Counterarguments 238
The WTO Is Not Purely Legal Organization 239
The WTO Is Not a Purely Multilateral System 242
Political Concerns 243
Developed Countries 243
Developing Countries 244
Soft Law Compliance 246
Success of the Proposal 246
Soft Law Effectiveness 247
Compliance Under Trade Law 250
Government Procurement Agreement Experience 253
Summary 255
References 256
190784_1_En_8_Chapter_OnlinePDF 260
Chapter 8: Conclusions 260
References 262