International and European Tax Law Summary Part 1 / 4

International and European
Tax Law

,lecturet-tnescopeottaxtreaties-I.thescopeoftaxtreatr.es#
1 Personal scope Territorial Scope
.
2 .
3 .
Objective scope
1 AA 112 ) .
t
3 on a ) tb) AA 1121
.
t 4 Art -24) .




2 Eh law overrides domestic law otherwise it wouldn't
-
be effective ; based on case law
;


? EU -
law also overrides
treaty law, because these are treated as domestic law




DnP¥est AA 112) UN Model AA 2919)
'




-




,
. OECD



general Anti Abuse Clause
=
-
-




-




against Treaty shopping (
A
certain stale
general tax
planning tool where you , locate
your business in a
just togain the benefits of a certain treaty)

benefit must be of the purposes of an arrangement
-




one main
A
very broad taxation will almost
, always be a reason Ipurpose for choosing a certain
type of arrangement
1also
part of the Mu


domicile is linked to the intention of a TP to stay, live and return to state
-




,
a certain


1 there can
only be one domicile

1
for English speaking countries
-




"


Residence
'

is linked to common law countries
-




bing.orationcoveredbyAA.am?-
⇒



°
NO :




which is not mentioned
inCorp means
nothing else than the
nationality of a company
-
.

,




residence 1is referenced to individual)
-


not covered
by domicile and

is not Doe M , because this means business in a state which isn't
necessary for the sole incorporation
doing
-




-
is also not a criterion of similar nature
1 elements are territorial and territorial link bee it is
incorporation has no .
a
legalfiction
itis not mentioned in the MTC
explicitly
-




mean.



1 but in the US Model
.




-

T
WHT ? Dist rib of profits




a°ye
-




if this State Residence TT is
of
-



yes
- -
so

domicile also inCorp
may
-


cover .




applicable
residence also under dom law
may cover inCorp
-
. .




NL is not
if no the scope
'
.
under
-




is since it leads to full tax
a criterion of similar nature
liability
-


,

, Dualtdesidlncy
→
CFC
legislation
-




°
Tri -

Breaker -
Rules 412 ) t 413 )


many courtsgivefavor family 7 AA 4121
1 to
personalfacts in .




AA#3)

MAP
'
A
before poem
-




→




1Commentaries the MA
suggest taking POEM t incorp
t
any other relevant factor into account while
filing


Territorials
a "
" "




territory of a stale
not what
defined is
-




AA 30
refers to territorial extension at treaty
→
. a


1 has to be
"

derived from interpretation
"

of the term stale

costal waters ContinentalState
High Seas Continentalshelf is not part of
territory even though it has exploration
rights
this
-
- -
: on

''
Treaties scope
"

which include continentalshelves into
territory → look for offshore provisions
-




Air space above of state's Cupto certain limit)
territory ispart territory
-




outside State's not airplanes)
(
ships are part of territory of state as
long as they move territory
-


a




hatendlscopeAA.2-lectareL-souras.at/nternationalanaEUro
taxlawsourasoftaxl.ae
→
tiara law -

case law -




SokLaut


Recentonanges
soft law becomes more influencing
-
-




-




from bilateral to multilateral relations nanoidcrisis in 2008
, followed by scandals


from E0112 to AEOI tax heavens and
-




reg .




digitalization
from domestic law to international
guidelines tax systems couldn'tfollow economic needs
-
-




Howtosolvetheissue
OECD at the forefront to achieve more trans
per any of information
-
-




-


better Anti Avoidance Measures -
-




Jailally implemented
Mandatory Disclosureof information
-




fighting Tax Evasion
-




bank tax havens
ending secrecy
-




+




address tax avoidance tax multinationalcorporations
and
aggressive planning by
-