Abstract
This policy note aims at setting a methodological framework for the study of legal transplants in taxation and more specifically to the use of the comparative legal theories of legal transplants, legal (tax) systems and legal (tax) culture to study the implementation of the Base Erosion and Profit Shifting (BEPS) 4 Minimum Standards. Attention will be given to the following questions who is participating as donor or recipient and why? how the tax systems and tax culture (actors) influence the process? and what are the rules that will be implemented? By using comparative legal theories, this policy note allows to explain the reasons why countries decided to implement the BEPS 4 Minimum Standards. These reasons are for instance, prestige, political incentives, and chance and necessity. Furthermore, the study of the differences in tax systems and tax culture can allow policy makers in international organizations and countries to understand the transplantation process and the development of tax rules implementing the BEPS 4 Minimum Standards. The theory of tax systems will take into account the differences between civil law, common law and mixed legal systems. The theory of tax culture will take into account the behaviour, values and attitudes of the relevant actors (the courts with tax competence, tax law-makers, taxpayers, tax administration, business associations, tax advisors, scholars, and civil society Non-Governmental Organization (NGOs.). In order to illustrate these differences, this policy note has addressed the implementation of the Principal Purpose Test in the countries participating in the BEPS Inclusive Framework. Legal transplants, tax culture, BEPS, global tax governance, principal purpose test, international taxation.
Highlights
The overall aim of this policy note is to develop a methodological framework for the study of the BEPS 4 Minimum Standards in light of comparative law theories of legal transplants, legal system and legal culture.In 2013, the OECD with the political mandate of the G20 introduced the Base Erosion and Profit Shifting (BEPS) Project
In order to illustrate these differences, this policy note has addressed the implementation of the Principal Purpose Test in the countries participating in the BEPS Inclusive Framework
The BEPS Project and its Inclusive Framework provided for the introduction of 4 Minimum Standards
Summary
In 2013, the OECD with the political mandate of the G20 introduced the Base Erosion and Profit Shifting (BEPS) Project. The aim of this project was to tackle aggressive tax planning by multinationals.[1] The BEPS Project and its Inclusive Framework provided for the introduction of 4 Minimum Standards. These Minimum Standards comprise four of the fifteen Actions of the BEPS Project which has been developed by the OECD with the political support of the G20. The BEPS 4 minimum standards that should be implemented are countering of harmful tax practices and exchange of rulings (Action 5), preventing of treaty abuse (Action 6), re-examining transfer pricing documentation including country by country reporting (Action 13), and enhancing resolution of disputes (Action 14)
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
