Unit 1734: International Tax Law

1. Introduction to International Tax Law

• Overview and significance of international tax law
• Key principles governing international taxation
• Role and relevance of tax treaties in cross-border taxation

2. Tax Residency and Domicile Rules

• Definition and importance of tax residency
• Criteria for determining residency of individuals
• Residency rules for entities (corporate residency)
• Concept of domicile and its impact on tax obligations
• Conflicts and tie-breaker rules in residency determination

3. Double Taxation and Methods of Relief

• Understanding double taxation: economic vs juridical
• Consequences of double taxation on taxpayers and economies
• Methods of relief:
  • Tax treaties (bilateral agreements)
  • Unilateral relief measures
  • Tax credits and exemptions
• Interaction between domestic laws and international agreements

4. Transfer Pricing Rules

• Definition and purpose of transfer pricing regulations
• Arm’s length principle and its application
• Methods for determining transfer prices
• Documentation and compliance requirements
• Challenges in enforcement and dispute resolution

5. Controlled Foreign Corporation (CFC) Rules

• Objectives of CFC rules in preventing profit shifting
• Definition and identification of CFCs
• Types of income targeted (e.g., passive income)
• Mechanisms of CFC taxation
• Impact on multinational corporations and tax planning

6. Tax Havens and Anti-Avoidance Measures

• Characteristics and use of tax havens
• Tax avoidance vs tax evasion
• Risks and implications for international tax compliance
• Anti-avoidance rules:
  • General anti-avoidance rules (GAAR)
  • Specific anti-avoidance rules (e.g., substance requirements)
• International cooperation against aggressive tax planning

7. Tax Treaties and their Interpretation

• Purpose and structure of tax treaties
• Allocation of taxing rights between contracting states
• Key treaty provisions (e.g., residence, permanent establishment, dividends, interest, royalties)
• Interpretation principles:
  • Vienna Convention on the Law of Treaties
  • OECD Model Tax Convention guidance
• Resolving treaty disputes and mutual agreement procedures

8. BEPS (Base Erosion and Profit Shifting) Project

• Background and rationale for the OECD BEPS project
• Common BEPS strategies employed by multinational enterprises
• Key BEPS actions and measures:
  • Treaty abuse prevention
  • Transfer pricing documentation
  • Country-by-country reporting
• Impact on international tax policy and compliance

9. Case Studies in International Tax Planning

• Analysis of real-world multinational tax planning structures
• Application of tax residency and treaty rules
• Transfer pricing controversies and resolutions
• Use of CFC and anti-avoidance rules in practice
• Evaluation of BEPS compliance efforts