Document Type
Book Chapter
Publication Date
2023
Abstract
This chapter addresses the status quo, trends, and perspectives in international tax law. The international tax regime (ITR) is based on two principles: the benefits principle and the single-tax principle (STP). The benefits principle gives the primary right to tax passive (investment) income to residence jurisdictions, and the primary right to tax active (business) income to source jurisdictions. Meanwhile, the STP states that all cross-border income should be subject to the rate of tax determined by the benefits principle. The chapter then argues that developments in the past decade have significantly bolstered the ITR, so that it does a much better job of protecting personal income tax (PIT) and corporate income tax (CIT) from erosion due to cross-border tax evasion and avoidance than it did prior to 2010. Specifically, the adoption of the US Foreign Account Tax Compliance Act and the consequent development of Automatic Exchange of Information and the Common Reporting Standard have significantly protected PIT, while the OECD Base Erosion and Profit Shifting Project has significantly improved CIT.
Publication Information & Recommended Citation
Avi-Yonah, Reuven S. "International Tax Law: Status Quo, Trends and Perspectives." In The Oxford Handbook of International Tax Law, edited by Florian Haase and Georg Kofler, 143-156. Oxford: Oxford University Press, 2023. DOI: https://doi.org/10.1093/oxfordhb/9780192897688.013.9
Comments
This material was originally published in The Oxford Handbook of International Tax Law, edited by Florian Haase and Georg Kofler and has been reproduced by permission of Oxford University Press. For permission to reuse this material, please visit http://global.oup.com/academic/rights