In 2015, people around the globe celebrated the 800th anniversary of the Magna Carta Libertatum, considered to be the first constitutional-like document that established restrictions on a sovereign’s basically unlimited power. The principle of “no taxation without representation” has its origins in this British document of 1215. The symbolic relevance of the Magna Carta has…

Written by Associate Professor, PhD, Michael Tell, Department of Law, Copenhagen Business School and Technical Advisor, CORIT Advisory. Darwin’s theory of evolution states that complex creatures evolve from more simplistic ancestors, while natural selection ensures that only the fittest survive and the others become evolutionary “dead-ends”. The aim of this blog contribution is to address…

The longstanding view on application of the arm’s length principle is that it is generally based on a comparison of the conditions in a controlled transaction with the conditions in transactions between independent enterprises. A transaction, for this purpose, almost always involves a contract. This is because a contract, whether made in writing, orally or…

An open door for emerging economies or the beginning of the end in international tax co-ordination In an article published earlier this year,[1. Teijeiro, Opening the Pandora’s Box in the International Tax Field (First Part), Tax Planning International Review, volume 42, #4 (April 2015), p. 4 ss.] I alerted on the instability of the current world tax…

As from the first BEPS proposals with respect to intangibles, it has been considered that the Arm’s Length Standard (“ALS”) is “slowly but surely being relegated to the back seat” of the OECD Guidelines.[1. R. Robillard, BEPS: Is the OECD Now at the Gates of Global Formulary Apportionment?, 43 Intertax 447, at 447.] Indeed, some…

China has risen as a key global economic development engine and player over the past three decades. An evidentiary lynchpin derived from such mighty economic advances is China’s gradually escalating role to be a discourse power drive from a passive norm taker in various international arenas. China should play a more important role in designing…

Everyone concerned with international taxation awaits the publication of the final package of BEPS measures by the OECD on Monday 5 October 2015. While the BEPS programme addresses disparities between national tax systems and features of international tax rules that have allowed some multinational companies to enjoy very low effective corporate tax rates, it is…

In a globalized economy, financial crimes –including tax crimes– threaten the strategic, political and economic interest of developed and developing countries as well, and undermine confidence in the global financial system. The traditional perception was that tax evasion, even of a criminal nature, was somehow different from money laundering and other financial crimes (e.g., corruption),…

In the last few months I have been deeply committed with the Klaus Vogel Lecture, which will be held in September 25, 2015, in the Vienna University of Economics and Business (see invitation here). I have chosen the theme “Arm’s Length beyond the Guidelines of the OECD”. My research has led to the writing of…

China’s fiscal and tax reform should aim to narrow down income disparity and facilitate income redistribution to realize social equity. Justifiably, Chinese citizens’ perception to the rich has been different and subtle, given the suspicion that the rich grows wealth through unethical rent-seeking or corruption. The philanthropic tradition and culture were squandered by uncivilized spending…

In many respects a multilateral tax treaty represents an utopian view of international tax law: a wide consensus among nation states to submit themselves to a common set of rules that govern the levying of taxes across national boundaries. While there have been several examples of attempts at multilateral double taxation treaties, such as the…

On August 5, 2015 Grant Thornton (GT) published their annual International Business Report, a global “mid market survey covering more than 10,000 companies in 35 economies”. Unfortunately, their website only provides summaries;  the full report relating to tax is not available on the site. It appears a sensible assumption the mid market companies surveyed engage in cross…

China has made vast strides in environmental protection in the past decade. The Decision further indicates that “ecological civilization” a key development goal for China. Various schemes are being tried to curb harmful emissions, for example, a cap-and-trade system is already up and running in Shenzhen, Guangdong, and is slated to expand into six other…

Part 1 of the Report to G20 Development Working group (DWG) on the impact of BEPS in Low Income countries (LICs), dated July 2014, listed in its Section 6: Other High priority BEPS Issues for developing countries, paragraph c), the topic of base erosion through wasteful tax incentives designed to attract investment, labeling it as…