Practical Issues Regarding International Underppinnings of Tax Legislation Under the Auspices of Law No. 296/2020

Florin Cornel Dumiter,Ștefania Amalia Jimon

doi:10.2478/jles-2021-0001

Florin Cornel Dumiter, Ștefania Amalia Jimon

Open Access

https://doi.org/10.2478/jles-2021-0001

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Abstract

Abstract In this article, it will be analyzed, from the perspective of doctrine and jurisprudence, the implications of some international aspects of tax legislation, under the auspices of the latest changes in the field of taxation made by Romania. For this purpose, it will be analyzed the implications of the new fiscal provisions regarding the international aspects from the perspective of Law no. 296/2020. In this sense, it will be focused upon certain issues such as international double taxation, transfer prices, affiliated businesses and corporate tax. Also, the case presented in the jurisprudence section enriched in the second part of the article comes to support the framework of the future application of the new provisions regarding certain fiscal aspects with elements of foreignness in Romania. The results of the research subsumed in this article highlight the fact that the tax legislation in Romania has had a significant improvement, especially in terms of international aspects of financial and tax law. In conclusion, both the analysis of the evolution of tax legislation and the case law presented show that there are significant improvements at a national level, both in terms of the quality of the enactment of a tax law and the way in which the provisions of the law are implemented in practice.

Highlights

Introduction and literature reviewThe international aspects of taxation manifested both from a legal point of view and an economic point of view, are important
In the first part of the research, the authors highlighted the economic and legal framework of double taxation conventions, while the last part of the study was the analysis of a case study from national jurisprudence, regarding the income obtained by non-residents in Romania under the auspices of the convention, concluded between Romania and Great Britain by Decree no. 26/1976
The structure of this article is as follows: the first section contains introductory notions regarding several aspects of doctrinal importance regarding international taxation manifested in the judicial literature, their implications, and limitations; the second section presents the historical evolution trend of the Romanian's Tax Code and Tax Procedure Code with their specific timeline appliance aspects; section 3 highlights the major important practical shifts regarding international aspects of tax issues revealed by up-to-date Romania's legislation; the fourth section analyzes some interesting judicial and economic insights regarding practical tax issues enriched in the Romanian jurisprudence; the last section concludes with the final considerations and remarks regarding the debated topic and underlines some future research paths

Summary

Introduction

Introduction and literature reviewThe international aspects of taxation manifested both from a legal point of view and an economic point of view, are important. The purpose of this article was to analyze the tax implications established at the end of 2020 from the perspective of the Tax Code in Romania, and the analysis of an interesting case from national jurisprudence, given the establishment of income tax based on the value of management and research services on the intra-Community market of Poland, Hungary and the Czech Republic In this respect, this case has been chosen from the national jurisprudence because it constitutes an important basis for the analysis of the jurisprudential mechanism of application in practice of the existing provisions and connection with the new fiscal regulations in the field. The structure of this article is as follows: the first section contains introductory notions regarding several aspects of doctrinal importance regarding international taxation manifested in the judicial literature, their implications, and limitations; the second section presents the historical evolution trend of the Romanian's Tax Code and Tax Procedure Code with their specific timeline appliance aspects; section 3 highlights the major important practical shifts regarding international aspects of tax issues revealed by up-to-date Romania's legislation; the fourth section analyzes some interesting judicial and economic insights regarding practical tax issues enriched in the Romanian jurisprudence; the last section concludes with the final considerations and remarks regarding the debated topic and underlines some future research paths

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Conclusion