We are happy to inform you that the latest issue of the journal is now available and includes the following contributions: Andrés Báez Moreno & Yariv Brauner, Pillar One and Alchemy: What Can We Learn from past Mistakes Pillar One’s Amount A has failed miserably. However, the paper attempts to enumerate the many political and…

“[I]n this world, with great power comes great responsibility!” – Uncle Ben advice to the young Peter Parker, the 1962 Amazing Fantasy #15, by Stan Lee 1        Introduction Explainable artificial intelligence (XAI) systems in tax law are needed to comply with principles of law such as legality, proportionality and non-discrimination. A sufficient degree of explainability…

We are happy to inform you that the latest issue of the journal is now available and includes the following contributions: Reuven Avi-Yonah, Do Intangibles Fit BEFIT? This article argues that the BEFIT formula should not include intangibles because they are subject to manipulation and their value is reflected by other factors in the existing…

Abridged comments for a regional appraisal and possible outcomes to implementation 2010-2020: A Decade of Profound Changes in International Taxation Following the world financial crisis, the industrialized countries were deeply dissatisfied with revenue collection levels. In that context, which extended to the first years of the last decade, the political dialectic of the time left…

Introduction On 8th October 2021, 136 jurisdictions reached an historic agreement to reform the international tax system and, in the words of the OECD, bring it into the 21st century.[1]  The so-called two-pillar solution was presented to the G-20 Finance Ministers and the G-20 Leaders, who endorsed it. Thus, the future work of the OECD…

Raffaele Russo[1] “In those countries where income taxes are lower than in the United States, the ability to defer the payment of U.S. tax by retaining income in the subsidiary companies provides a tax advantage for companies operating through overseas subsidiaries that is not available to companies operating solely in the United States… The undesirability…

1. Background During the 21st Session of the UN Committee of Experts on International Cooperation in Tax Matters, the relevant members decided to include a new draft – Art. 12B on Automated Digital Services (ADS) as well as its Commentary – in the UN Model.[1] Concerning the agenda of the proposal, the Committee of Experts…

There’s something about OECD’s Pillar One. For some years now, the world has been under the spell of a new system of taxation of companies that make profits in countries without taking root there in any way. They often operate via internet platforms, which means that the profits that are generated elsewhere cannot be taxed…

As the Blueprint on Pillar I illustrates, the political and technical complexities inherent to the solution sought by OECD are of such magnitude, that such a sole fact opens the window to an alternate, workable outcome to market states; and in this sense, a coordinated treaty response from market states patterned after a source-based withholding…

In part 1 of this blog, we focused on the increased involvement of platforms in the levy of direct and indirect taxes. In this blog, we will highlight other digital economy tax trends, such as the shift of taxation rights on digital activities and fixed establishments. Shift of taxation rights between jurisdictions More user-and-consumer based…

Open to public On 27 and 28 January 2021, the 11th meeting of the OECD/G20 Inclusive Framework on BEPS was held. For the first time, a meeting of the Inclusive Framework was open to the public. Even though no negotiations took place during the public part of the meeting, access to this provided insight into…

We commend the OECD’s 15-year effort since its 2005 publication of E-commerce: Transfer Pricing and Business Profits Taxation to address the challenges arising from the digitalization of multinational enterprises’ business models and the evolution of cross-border ecommerce. Our comments and recommendations are submitted in an academic capacity and do not represent an official statement or…

Welcome to the first post in the series of International Law Talk. During a series of podcasts, Wolters Kluwer will bring you the latest news and industry insights from thought leaders and experts in the field of International Arbitration, IP Law, International Tax Law and Competition Law. Here at Kluwer Tax Blog, we will highlight…

Purpose of the blog This blog raises the question as to whether the Pillar I Amount A proposal is consistent with the value creation standard? Naturally, as a start, the question arises as to what the value creation standard is. Value creation standard Although the meaning of value creation, as used in the BEPS project,…