Taxation and international law

Abstract

Territoriality, nationality, passive personality, protection of the state, universality and extra-territoriality are all recognised bases of jurisdiction in international legal discourse and debate centres on their applicability or acceptability in particular circumstances. This chapter examines the main legal concepts and practices employed by states in delimiting their tax jurisdiction from that of others with overlapping interests. Customary international law restrictions on tax jurisdiction can be examined under three headings. First, there may be restrictions arising from particular substantive rules of the system, such as the principle of non-intervention in internal affairs, the rules on the treatment of foreign nationals or the principle of non-discrimination. Second, there may be restrictions arising from the general principles of jurisdiction. And, finally, there may be specific restrictions on jurisdiction in the taxation sphere, evidenced by state practice and opinio juris.