Exemption Method and Credit Method / editors, Georg Kofler [and six others].

Format:

Book

Contributor:

Kofler, Georg, 1977- editor.

Series:

WU Institute for Austrian and International Tax Law European and international tax law and policy series ; v. 24.

WU - Tax Law and Policy Series ; Volume 24

Language:

English

Subjects (All):

Tax exemption--Law and legislation.

Tax exemption.

Tax credits--Law and legislation.

Tax credits.

Double taxation.

Physical Description:

1 online resource (396 pages)

Edition:

First edition.

Place of Publication:

Amsterdam, The Netherlands : IBFD, [2022]

Summary:

This book aims to provide an in-depth analysis of any and all current issues related to the application of Art 23A and 23B of the OECD Model.

Contents:

Cover

Title

Copyright

Preface

Chapter 1: Method Article and Unilateral Measures to Avoid Double Taxation

1.1. Introduction

1.2. Avoidance of double taxation through unilateral relief

1.2.1. Methods of unilateral relief

1.2.2. History of unilateral relief

1.2.2.1. Exemption

1.2.2.2. Credit

1.2.3. When does unilateral relief apply?

1.3. Avoidance of double taxation through treaties

1.3.1. The effect of distributive rules

1.3.2. Application and effect of the method article

1.3.2.1. Avoidance of residual double taxation

1.3.2.2. Articles 23A and 23B

1.4. Comparison between unilateral relief and treaty relief

1.4.1. Key differences between unilateral measures and the method article

1.4.1.1. Advantages of unilateral relief

1.4.1.2. Advantages of treaty relief

1.5. Are tax treaties the most effective means of eliminating double taxation?

1.6. Conclusion

Chapter 2: Method Article and Allocation Conflicts

2.1. Introduction

2.2. The issue of income allocation conflicts

2.2.1. The origin

2.2.2. The triggers

2.3. The application of tax conventions in income allocation conflicts cases: The resident state facet

2.4. The application of article 23 to income allocation conflicts

2.4.1. Economic double taxation and juridical double taxation: Is there a boundary?

2.4.2. Principles proposed by the Partnership Report

2.4.3. Treatment according to the OECD Model (2017) and the UN Model (2017)

2.5. Conclusion

Chapter 3: Conflicts of Qualification under Articles 23A(1) and 23B(1)

3.1. Introduction

3.2. Conflicts of qualification and articles 23A and 23B

3.2.1. The key phrase of paragraph 1 of articles 23A and 23B

3.2.2. Conflicts of qualification: A brief overview

3.2.3. Conflicts of qualification: A fine line.

3.3. The impact of the 2017 changes to the OECD and UN Models

3.3.2. Expanding source state taxation rights

3.3.1. Preventing non-taxation under the model

3.3.3. Addressing hybrid entities and conflicts of qualification

3.2.4. A longstanding and ongoing debate

3.4. The search for solutions to conflicts of qualification

3.4.1. Substantive solutions

3.4.2. Interpretive solutions

3.4.3. Procedural solutions

3.5. Conclusion

Chapter 4: Conflicts of Qualification under Article 23A(4)

4.1. Article 23A(4) of the OECD Model: A finished discussion?

4.2. Conflicts of qualification under article 23A(1) of the OECD Model

4.2.1. The "new approach" according to the OECD

4.2.2. Criticism of the "new approach"

4.3. Conflicts of qualification under article 23A(4) of the OECD Model

4.3.1. Qualification conflicts covered by article 23A(4)

4.3.2. Criticism of article 23A(4)

4.3.3. Procedural aspects of article 23A(4)

4.4. The complexity behind the phrase, "the other contracting state applies"

4.5. Reception of article 23A(4) of the OECD Model

4.5.1. Article 23A(4) of the OECD Model in tax treaties

4.5.2. Article 23A(4) of the OECD Model in the context of the BEPS Project

4.5.3. Article 23A(4) of the UN Model

4.6. Concluding remarks

Chapter 5: Notion of "Tax" under the Credit Method

5.1. Introduction

5.2. Characteristics of tax for claiming credit under article 23B

5.2.1. Relation of article 23B to article 2

5.2.2. Compulsory payment to claim credit

5.2.3. Unrequited payment to claim credit

5.2.4. Effective payment to claim credit

5.2.5. Undisputed payment to claim credit

5.3. Tax credit problems

5.3.1. Credit in the case of the taxpayer neglecting to seek a refund

5.3.2. Credit in the case of incorrect assessment in the source state.

5.3.3. Credit in the case of choices offered under the domestic law of the source state

5.3.4. Credit in the case of prohibitions in the statute of limitations of the residence state

5.4. Conclusion

Chapter 6: Credit Method and Maximum Tax Credit

6.1. How much credit is the residence state obliged to give under tax treaties?

6.2. Limitation of foreign tax credit in treaty history: The origins of foreign tax credit limitations

6.2.1. Domestic US tax legislation and foreign tax credit

6.2.2. League of nations

6.2.3. OEEC/OECD Model

6.3. Prerequisites for the foreign tax credit under article 23B of the OECD Model

6.3.1. Resident person

6.3.2. Income derived and capital owned

6.3.3. "May be taxed" in the source state as a reference to open distributive rules

6.3.3.1. Non-exclusive taxing right of the source state

6.3.3.2. Exclusive taxing right of the residence state or source state

6.4. Maximum tax credit

6.4.1. Double limitation of residence state's obligation to give credit: Tax paid and maximum deduction

6.4.2. Limitation by maximum deduction

6.4.2.1. Rule and general mode of operation: The formula and its assumptions

6.4.2.2. Residence state tax on total income

6.4.2.3. Part of the income or capital tax that is attributable to the income or capital that "may be taxed" in the other state

6.4.2.3.1. Residence state tax on income received or capital owned at source

6.4.2.3.2. Determination of income that may be taxed at source

6.4.2.4. Income aggregation for the calculation of the maximum deduction: "Overall", "per country" or "per item" ­approach?

6.4.2.4.1. The conceptual differences and their relevance for the ­maximum deduction

6.4.2.4.2. Article 23B(1) of the OECD Model: Implicit per-country ­approach and its implications.

6.4.2.4.3. Per-item approach required under article 23A(2) of the OECD Model?

6.5. Excess foreign tax credit: Carry-forward of foreign tax credit obligatory under treaty law?

6.5.1. Outline of the problem arising from excess foreign credits

6.5.2. Article 23B(1) or article 23A(2) of the OECD Model as legal basis for a carry-forward of foreign tax credit?

6.6. Conclusion

Chapter 7: Credit Method and Different Taxes on Income and on Capital

7.1. The problem to be solved

7.2. Current state of the debate

7.2.1. Multiple taxes in the source or in the residence state

7.2.2. Operation of the credit when there are multiple taxes in the residence state: Prioritization of specific taxes?

7.3. Taxes on income versus taxes on capital

7.3.1. The interpretation of article 23B(1) of the OECD Model

7.3.2. How to distinguish between "taxes on income" and "taxes on capital"

7.4. The application of the credit method to multiple taxes

7.4.1. The application of the credit method to multiple taxes: Same items of income

7.4.2. The application of the credit method to multiple taxes: Different items of income

7.5. Conclusion

Chapter 8: Tax Sparing

8.1. Introduction to tax sparing: Main features and source of issues

8.2. Over 60 years of debates on tax sparing

8.2.1. From 1957 to the beginning of the 21st century: Old arguments to a renewed debate

8.2.2. 1998: The focus on abuse

8.2.3. New ideas for a new century

8.3. Embracing the new reality: Tax sparing in the BEPS aftermath

8.3.1. Not an aid tool, but a sovereignty tool

8.3.2. Are studies on the impact of tax treaties and tax incentives on FDI accurate?

8.3.3. A fairer approach regarding source countries' sovereignty

8.3.4. Hidden tax protectionism vs. international tax fairness

8.4. The future of tax sparing under the GloBE proposal.

8.4.1. Relevant premises of the BEPS Project

8.4.2. The GloBE proposal under Pillar Two: An anti-BEPS measure?

8.4.3. GloBE and jurisdiction not to tax: A sovereignty issue

8.4.4. The impact on tax sparing

8.4.5. Hidden tax protectionism and other incompatibilities

8.4.6. (How) can GloBE be made compatible with tax sparing?

8.5. Conclusion

Chapter 9: Exemption Method with Proviso Safeguarding Progression

9.1. Introduction

9.2. Aim of the proviso safeguarding progression

9.3. Application and functioning of the proviso safeguarding progression

9.4. History

9.4.1. Drafts of models from the League of Nations

9.4.2. The first OECD Model with the exemption method with safeguarding progression (1963)

9.4.3. The OECD Model (1977): Development into a standalone paragraph in article 23

9.5. Constitutive or declarative nature of the proviso safeguarding progression in a tax treaty

9.5.1. The common effect of the proviso safeguarding progression

9.5.2. Tax treaty with a limited proviso safeguarding progression

9.5.3. Tax treaty with a proviso safeguarding progression based on the OECD Model (1963) or earlier

9.5.4. Conclusion

9.6. Source state: Permitted or prohibited to apply proviso safeguarding progression?

9.6.1. The proviso safeguarding progression in the source state in the context of the tax treaty

9.6.2. The proviso safeguarding progression in the source state in the light of the OECD Commentary

9.6.3. The proviso safeguarding progression in the source state according to the literature and case law

9.6.4. Conclusion

9.7. Limits by tax treaty law for the application of a domestic proviso safeguarding progression

9.7.1. Scope

9.7.2. Legal consequences

9.7.2.1. Tax rate versus amount of tax

9.7.2.2. Negative proviso safeguarding progression.

9.7.2.3. Taking into account the "exempt income or capital".

Notes:

Includes bibliographical references.

Description based on publisher supplied metadata and other sources.

Description based on print version record.

Other Format:

Print version: Exemption Method and Credit Method

ISBN:

9789087228002

OCLC:

1371141199