Taxing Rights Research Articles

Rethinking taxing rights

Abstract The debate around the allocation of taxing rights between developed and developing jurisdictions has been stuck in the same place for the past 100 years. Pillar 1 of the OECD/G20 Inclusive Framework has the merit of reopening this debate, but the compromise reached so far may turn out not to be acceptable to all stakeholders. This article reviews the consequences of failing to reach an agreement and underscores the relevance of pursuing a timely alternative under the novel prospect of an UN Framework Convention.

The Quiet Evolution in International Tax: Domestic Law and Double Taxation

This article describes the respective roles of international tax law (predominantly tax treaties) and domestic tax law and their relationship with each other. This is a complex and interdependent relationship, with treaties, as special law, generally overriding domestic law. The article discusses the founding principle of tax treaties preventing double taxation, reflecting the original purpose of tax treaties. Subsequent developments over time have vigorously established the second principle of treaties: that the purpose of tax conventions is also to prevent tax avoidance and evasion. Such an increasingly important principle heralds the rise of anti-avoidance rules, prevention of abuse and the preservation of domestic taxing rights. The thesis in this article is that domestic law has prevailed against the more specialized law of treaties and at an increasing rate. This evolution has occurred in situations where the special law of treaties is “watered down” by the principle that treaties should not be allowed to be abused or in situations where they facilitate tax avoidance. What are the implications of this trend on the development of international tax policy? The article reflects on the respective roles of international and domestic law and guides us to suggestions on how to preserve important international tax principles in good faith and limit expedient domestic tax law changes when they are not driven by taxpayers’ abusive actions.

ACHIEVING THE LEGAL OBJECTIVE OF WITHHOLDING INCOME TAX ON FOREIGN YOUTUBE VIDEO CREATORS FOR VIDEO UTILIZATION INCOME SOURCED IN INDONESIA

<p>One of the digital economy transactions is the transaction on YouTube monetization received by video creators based on viewers in a source country. Overseas video creators do not pay Income Tax (PPh) in Indonesia on income from Youtube videos sourced in Indonesia because there is no physical presence of the video creator in Indonesia and no identified income as a tax object on which the Indonesian tax authorities impose PPh on the overseas video creator. This condition creates legal uncertainty, injustice, and loss of benefit for Indonesia as a source country due to the loss of potential PPh revenue from the digital market. Currently, Article 32A of the General Provisions and Tax Procedures (KUP) Law has provided a formal tax law to be able to appoint other parties as PPh withholders. However, the implementation is not yet possible because the material tax law is not yet sufficient to designate other parties, such as Google, which are not domiciled and have no permanent establishment in Indonesia as PPh withholders. To achieve legal objectives, the PPh Law as material tax law needs to be strengthened to provide legal certainty in the PPh withholding on foreign video creators and create justice and benefits for Indonesia as one of the source countries for video creators' income. Strengthening the PPh Law is conducted by amending the provisions of Article 26, Article 2 paragraph (4), and Article 4. The amendment to the PPh Law does not result in revisions of the P3B Indonesia and other countries since the allocation of taxation rights for royalty income from the source country has been regulated in the P3B. Furthermore, the government could make implementing regulations regarding the PPh withholding by other parties on income from the utilization of content copyrights received by YouTube video creators.</p>

Gambaran Kepatuhan Wajib Pajak UMKM Binaan KPP Kalideres

Indonesia is one of the developing countries that is identical with development action activities from all types of industries, where the need for funds is sourced from the tax system collected from taxpayers. But in fact, not a few taxpayers are still not tax-compliant because they are influenced by some factors. The purpose of this research is to find out whether those factors influence MSMEs taxpayer compliance. The method that researchers use is qualitative-descriptive. The sample in this study is MSMEs that are doing business in the KPP Kalideres area, own or joint businesses, have an NPWP, and have a minimum turnover income of Rp.4,000,000,- and a maximum of Rp.500,000,000,-. The sampling technique uses a purposive sampling technique. Data collection techniques use interviews and documentation. The results of this study show the profile and background of MSME business actors, and fundamental factors such as the wealth of knowledge about taxation, the frequency and type of socialization used, effectiveness in modernizing the tax administration system, and the character of love of money attitudes are supporting factors for MSME business actors in influencing their mindset, decision making, and attitude in implementing their tax rights and obligations.

THE INFLUENCE OF MESSAGES IN SOCIAL MEDIA ON TAXPAYER COMPLIANCE

This study integrates the Theory of Planned Behavior (TPB) and the Elaboration Likelihood Model (ELM) to assess and explain taxpayers' compliance with the Twitter account @DitjenPajakRI. This is a quantitative study with an explanatory approach. A purposive sample strategy was used with a questionnaire to collect data for this research. A total of 200 people filled out the research questionnaire. According to the study’s findings, Source Credibility influences Attitudes, and the two TPB components, Attitudes and Perceived Behavioral Control, influence Taxpayer Compliance. As for the relationship between Argument Quality and Source Credibility on Attitudes, there is no moderating effect of Involvement; instead, the relationship between Source Credibility and Taxpayer Compliance through Attitudes is a full mediation relationship. The findings of this study can assist the tax authority in developing strategies and policies for efficiently and effectively communicating tax information to taxpayers as they make decisions about how to fulfill their tax rights and obligations through messages from central route, peripheral route, normative, and non-volitional processes.

Tax revenue from Pillar One Amount A: country-by-country estimates

AbstractThis paper presents first-round simulations of the tax revenues arising from the Pillar One Amount A proposal of the G20/OECD inclusive framework on base erosion and profit shifting for 2016–2025. Amount A aims at revising taxing rights on multinational enterprises with at least €20 billion in revenue and profitability above 10%. We consider the latest available Pillar One Amount A rules as detailed in the “Multilateral Convention to Implement Amount A of Pillar One” (OECD 2023b). In a first step, we identify the multinationals that would be “covered” under Pillar One Amount A. Then, by combining micro and macro data sources, we create a database that approximates these Covered Groups’ worldwide distribution of destination-based revenues, profits, employees, and tangible assets. Destination-based revenues serve to reallocate Amount A profits across jurisdictions. Finally, we account for double taxation relief to obtain country-level net revenue estimates from Pillar One Amount A. The aggregate additional tax revenue arising from Pillar One Amount A varies from €5.7 billion in 2020 to €10.9 billion in 2022. We provide country-specific estimate ranges and a comparison to digital taxes. The trade-off between Amount A and digital taxes is unclear and may vary from one country to another. Testing for the implications of various provisions of Amount A rules, we observe that the extent of taxing rights redistribution is seriously affected by the Marketing and Distribution Safe Harbour (MDSH), while the profit reallocated to low and lower-middle-income jurisdictions crucially depends on the tail-end revenues provision.

Preventing Tax Base Erosion from Tax Treaty Abuse For SDGS in Vietnam

Objective: Tax treaties represent an important aspect of the international tax rules of many countries, especially in globalizing era. The taxing rights of the states is one of the biggest issues in cross border transactions because it decides the budget revenue deriving from tax. Tax base, tax base erosion and tax base erosion prevention are topics that have received a lot of attention recently in Vietnam in order to protect government’s revenue for sustainable development goals (SDGs). Method: By analyzing the current status of Vietnam's double taxation agreements (DTAs), the authors assessed the current situation and identifying risks of tax base erosion from abusing Vietnam's DTAs. The study focuses on analyzing the indicators to assess the content of DTAs such as the Source Index (SI), Permanent Establishment Index (PEI) and Withholding Tax Index (WHT) of Vietnam’s DTAs with the ones of groups of countries. Results: The authors found that there are loopholes in DTAs creating conditions for abuses of the terms of the agreements and causing tax base erosion in Vietnam. Comparing to the average level of developing countries, the DTA system of Vietnam is higher, however, the biggest limitation and the biggest risk from the system of DTAs are these agreements are agreements signed by Vietnam with the countries/territories that have the lowest scores and are in the group of countries/territories with the largest amount of investment capital in Vietnam. Contribution: The study makes some recommendations for Vietnam to prevent tax base erosion from tax treaty abuse by reviewing and considering negotiating to update the content of the bilateral tax agreements, promoting participation in multilateral tax agreement and improving efficiency of tax audit.

New Pillar to Address Tax Challenges Arising from Digitalization of the Economy

Traditional international tax rules empower a source state to tax non-residents who have a strong physical connection to that state. Digitalized business models reduce, or even eliminate, the need for a physical presence to conduct economic activities in the state where customers are located. This change has created significant challenges for tax administrations, and many jurisdictions have adopted unilateral digital services taxes to increase collection from digitalized businesses. The OECD/G20 Inclusive Framework aims to reform the ‘outdated’ international tax rules by promoting the Pillar One project on the tax challenges of digitalization in order to enable greater taxing rights by market jurisdiction. However, Pillar One seems to foster uncertainty rather than reassurance. This article considers the possibility of coordinating digital services taxes among individual jurisdictions: instead of focusing on the uncertainty and complexity of Pillar One, the OECD could use the Inclusive Framework to provide guidance on the collection of digital services taxes to protect taxing rights of market states and prevent double taxation of multinational enterprises.

Analisis Persepsi Karyawan Pada Penerapan Undang-Undang Nomor 7 Tahun 2021 Tentang Harmoni Sasi Peraturan Perpajakan (Studi Persepsi Karyawan WNJ.ID tentang Penggunaan Nomor Induk Kependudukan (NIK) Sebagai Nomor Pokok Wajib Pajak (NPWP))

Tax, which is defined as a contribution to the state that can be enforced through law, has two functions, namely the budgetary function and the regular function. As a budgetary function, taxes act as a source of state revenue, which can then be used to finance state activities. Therefore, the size of the tax that can be collected has very important implications for the number and quality of activities that can be carried out by the state. The tax ratio in Indonesia is low because Indonesian citizens are less aware of registering with the Tax Service Office (KPP) and obtaining a Taxpayer Identification Number (NPWP), so that there are many economic activities that should be tax objects but are difficult or cannot be detected by the tax authorities. The growing shadow economy activities can cause state losses, because shadow economy actors are generally separated from the tax authorities, thus eliminating the obligation to pay taxes. The taxation system in Indonesia which is self-assessment in nature encourages taxpayers to have self-awareness to report and pay their tax obligations in their role and support state revenues in order to achieve the common welfare of the people. To report and pay tax obligations, taxpayers must have a Taxpayer Identification Number (NPWP) as tax identity. Taxpayer Identification Number (NPWP) is a number given to taxpayers as a means in tax administration which is used as personal identification or Taxpayer identity in carrying out their tax rights and obligations, Taxpayer Identification Number (NPWP) is a means in tax administration which used as personal identification or taxpayer identity, each taxpayer is only given one taxpayer identification number. Taxpayer identification numbers are also used to maintain order in tax payments and in supervising tax administration, so that taxpayers' Taxpayer Identification Numbers (NPWP) obtain several other direct benefits, such as paying taxes in advance (installments\tax credits) on external taxes. paid when the taxpayer goes abroad, as a requirement when processing a trading business permit (SIUP), and as one of the conditions for creating a checking account at banks, taxpayers who do not register to obtain a taxpayer identification number are subject to witnesses in accordance with the provisions of tax laws and regulations. The survey results show that respondents have a positive perception regarding the benefits of the policy of integrating Population Identification Numbers (NIK) into Taxpayer Identification Numbers (NPWP) in increasing efficiency and ease in processing tax documents, verifying identity, the number of documents that need to be prepared, and access to services. online tax.

Evaluasi Pengawasan Wajib Pajak Online Marketplace di KPP Pratama Jakarta Pasar Rebo

Recently, people's economic activities have shifted from conventional forms to online forms or what is better known as e-commerce. This is the impact of the rapid development of information and communication technology, especially the internet. People are increasingly interested in shopping online rather than conventionally because shopping online has various advantages, such as: being practical and saving time because you don't need to come directly to the shop to get the goods/services you want, relatively cheaper prices because of the many discounts or promos offered provided, and the quality of the goods is relatively as good as those sold in regular (offline) shops. One form of e-commerce is in the form of online market places, such as: Tokopedia, Shopee, Lazada, and Bukalapak. However, the increase in trader turnover from this online market place was not followed by an increase in tax payments at KPP Pratama Jakarta Pasar Rebo (research location). The Indonesian tax system which implements self-assessment makes tax supervision and audit a tool to increase taxpayer compliance in fulfilling their tax rights and obligations. In this research, the author evaluated tax supervision at KPP Pratama Jakarta Pasar Rebo. Based on theory, there are 5 (five) factors that influence tax supervision, namely: Management Support, Regulations, Account Representatives as tax officers who carry out supervision, Taxpayers, and Information Systems. From the research results, it was found that these factors at KPP Pratama Jakarta Pasar Rebo have been in influencing tax supervision. In this regard, it is necessary to improve the quality of these factors to increase the tax supervision, so that it is hoped that by increasing the tax supervision, taxpayer’s compliance and tax revenues will also increase.

Taxation of Deemed Income in Treaty Law: A Comparative Analysis and Case Study

This article deals with the treatment of transfers of use without consideration in treaty law (double taxation convention/DTC), using the example of interest and royalties. Compared to an interest-bearing loan or licensing for consideration, the free transfer of use under the current DTC rules can lead to a distortion of the allocation of taxation rights between the Contracting States and potential tax losses in the source state. This article analyses this issue for the first time, including examples. To illustrate the analysis, a case study is included. The purpose of the study is to identify shortcomings of the current DTC rules concerning the taxation of deemed income from the free transfer of use in the state of residence of the borrower or licensee (referred to as the source state in this article) against the granting person. Another objective of the study is to derive solutions for the further development of DTC law to ensure adequate taxation of the free transfer of use in the source state. This study aims to improve the current DTC law.

Analysis of International Disputes over Digital Services Tax and Exploration of China’s Approach

With the continuous emergence of emerging information technologies, the digital economy is developing rapidly around the world. The global operations of multinational digital enterprises no longer rely on physical presence. The effectiveness of permanent establishment rules based on the traditional real economy settings has been questioned by market countries, which actively participate in Market countries where digital business value is created do not receive corresponding taxation rights. Multinational digital companies take advantage of loopholes in digital platforms and current tax rules to actively carry out tax planning, resulting in digital companies’ global tax burden being much lower than that of traditional companies. Tax sources cannot be fairly and reasonably distributed in the places where value is created and profits are taxed, which harms the tax interests of market countries. Against the background of slow progress in the OECD global unified solution, as a temporary unilateral measure to address the challenges of the digital economy, some countries have taken the lead in imposing digital service taxes on specific digital businesses of digital enterprises. On the basis of discussing the relevant concepts and theories of digital service tax, this article discusses the relevant concepts and theories of digital service tax, and analyzes the international development of digital service tax and the positions of various countries around the world. Further analyze the impact of digital service tax collection from three aspects: national fiscal revenue, tax trade disputes and international tax order coordination, and analyze the impact of digital service tax on digital enterprises. Then the perspective is focused on my country, sorting out and summarizing my country's relevant digital economy tax policies, and analyzing the impact of digital service tax on my country in the near term and long term based on the development of my country's digital economy. Finally, based on the previous comparative analysis and impact analysis, my country's tax system for promoting the development of the digital economy has gradually improved and actively participated in the reshaping of international tax rules, and my country's response strategies under the digital service tax have been proposed. The different levels of digital economic development between China and countries that have levied digital service taxes will inevitably lead to disharmony in the international tax order. The study found that the fiscal revenue brought by digital service tax is limited and has a certain degree of distortion effect. It is necessary to actively participate in international cooperation and make China's voice heard before reaching a consensus on international tax rules. In the long term, we should focus on the connection between the two-pillar plan and the domestic tax system, strengthen tax information exchange, improve the domestic digital tax rule system, and promote the healthy and sustainable development of my country's digital economy.

Notes on Tax Disputes from Misapplication of Indonesia-Japan Tax Treaty: A Study Based on Indonesian Tax Court Decisions

This study aims to examine the legal, economic, and political aspects of Indonesia-Japan tax treaty. Next, it examines tax disputes brought to the Indonesian tax court due to the misapplication of Indonesia-Japan tax treaty. It digests the Indonesia tax court decisions stipulated during Fiscal Year 2015–2021. The Indonesia-Japan tax treaty has existed for more than 30 years to allocate the taxing rights of the two countries. Japanese business has invested in Indonesia through the establishment of subsidiaries. The disputes occurred due to, in the first case, the interpretation regarding whether a business entity or an individual is a party that can be categorized as a tax subject in accordance with the Indonesian and Japanese tax treaties. Second, is the issue of the definition, classification, and characteristics of income that result in differences in tax treatment. Third, we find that the tax rates used for income withheld or collected because of income classification. Finally, the disputes also occurred due to the fulfilment of administrative issues which has been taken most proportion of the disputes. Therefore, both parties in a dispute need to have a similar understanding on how the agreed tax treaty applies to the dynamic of business. tax treaty, tax dispute, international tax law

Determining the Level of Tax Awareness and Factors Affecting Tax Compliance of Ready-to-Wear Businesses in Solano, Nueva Vizcaya 3709

The paper explored the intricacies of tax awareness and compliance among Ready-to-Wear (RTW) businesses that fall under the category of micro enterprises in Solano, Nueva Vizcaya, Philippines. The study employed theories of compliance and awareness as its conceptual framework, aiming to identify the factors that influence tax compliance and awareness among these businesses. It considered various demographic variables such as age, educational attainment, gender, and years in business operation as potential influencers. The study utilized a descriptive-comparative research design and collected data through a survey questionnaire. The findings indicate that the respondents have a high level of awareness of their tax rights and responsibilities, particularly regarding issuing receipts and invoices. However, they may need more understanding of tax return filing dates and timely tax payments. The factors influencing tax compliance include fines and penalties, the probability of being audited, financial constraints, tax knowledge, and peer influence. Non-compliance reasons include unawareness of laws, financial burden, and high tax rates. Recommendations include simplifying procedures, reducing tax rates, and improving tax education through socialization efforts. The study also highlights the importance of fines and penalties in promoting tax compliance. The paper is significant not just for tax authorities but also for the businesses themselves, offering them a clearer understanding of the importance of tax compliance and the implications of non-compliance. Overall, the paper serves as a multi-faceted exploration into the realm of taxation among micro enterprises, with a specific focus on the RTW businesses in Solano, Nueva Vizcaya.

Reconstruction Concept of The Meaning of Permanent Establishment Physical Presence for Tax Purposes

Technological developments have fostered cross-border e-Commerce transactions. This study aims to reconstruct the concept of the meaning of physical presence in the criteria for identifying foreign individuals and foreign entities as permanent establishments. Reconstruction uses the terminology of physical presence, which is adjusted to the presence of a new post-pandemic order, namely maintaining distance in certain situations. The term maintaining distance is translated as the distance between foreign individuals, foreign entities, and service users. This study proposes a reconstruction of the concepts of physical presence, the subject of permanent establishments, and the objects of permanent establishments. The concept of Significant Economic Presence is relevant to the fulfilment of three criteria: revenue, digital, and user. The reconstruction of permanent establishments involves determining the digital and user aspects. Reconstruction of permanent establishments involves determining the digital aspect of income. This study proves the hypothesis that the addition of Significant Economic Presence criteria to the determination of permanent establishments in e-commerce transactions increases the fairness of taxation rights in the source country. Therefore, it is necessary to review the determination of permanent establishments, especially e-commerce transactions, which are not limited to a physical presence with a wider scope through revenue, digital, and user criteria. This study makes a theoretical contribution to the significance of economic presence by replacing the meaning of the physical presence of a permanent establishment. Thus, the potential for permanent establishment taxation is not limited to the potential value-added tax but can also be on the potential income tax.

PENGARUH KESADARAN WAJIB PAJAK, KEWAJIBAN MORAL, TINGKAT PENGHASILAN, PELAYANAN FISKUS, DAN SANKSI TERHADAP KEPATUHAN WAJIB PAJAK KENDARAAN BERMOTOR

Taxpayer compliance can be interpreted as the attitude or behavior of a taxpayer in carrying out his tax obligations and enjoying his tax rights in accordance with applicable laws and regulations. The higher the level of taxpayer compliance in paying tax obligations, the tax revenue will increase. This study aims to empirically examine the effect of taxpayer awareness, moral obligation, level of income, tax authorities and sanctions on the level of motor vehicle tax compliance. This research was conducted at the Denpasar City SAMSAT Office. The type of data used is quantitative data, this research data is in the form of primary data and data collection is done by distributing questionnaires to motor vehicle taxpayers. The total population in this study is 1,470,570 motor vehicle taxpayers. Determination of the sample using accidental sampling technique with the number of samples used as many as 100 taxpayers who are determined using the solvency formula. The data analysis technique used is multiple linear regression. The results of this study are able to show that there is support from the use of the theory of planned behavior and the theory of compliance with the factors that influence the perception of taxpayers in taxpayer compliance. The results of the study show that taxpayer awareness, moral obligation, level of income, tax authorities and sanki services have a positive and significant effect on motor vehicle taxpayer compliance at the SAMSAT Office of Denpasar City.

Taxation of Remote Workers – Is the Allocation of Taxation Rights in Line with the Benefit Principle?

This article deals with the taxation of the increasingly growing workforce able to perform their work remotely. The phenomenon of remote work has experienced rapid growth, particularly accelerated by the COVID-19 pandemic when employees were recommended or obliged to work from home due to government lockdowns and restrictions. With the increasing prevalence of remote work, employers are able to recruit personnel globally, transcending the limitations of local recruitment markets. Consequently, the jurisdiction for taxing employee income may change compared to work performed physically on site. In the article, the author analyses how the various articles of the OECD Model addressing employment income allocate the right to tax the income of an employee in situations of remote work. Additionally, the author raises the question whether the outcomes derived from the allocation rules in remote work scenarios align with the benefit principle. The benefit principle states that a taxpayer should pay taxes in line with the benefits received from public services in a state, and the author uses it to measure whether the states involved in the income-generating activity are sufficiently able to tax that income.

Principles Justifying the Reallocation of Taxing Rights to Market Jurisdictions: Do We Need Them?

This article argues that the taxing right of market jurisdictions under Pillar One is justified by commonly invoked and widely accepted principles in international taxation. This is not just a desirable outcome of the international coordination on the allocation of taxing rights but a moral demand that the inter-state allocation of taxing rights must comply with. A principle-based allocation of taxing rights is a precondition for the legitimacy and thus the equity of the international tax regime. Principles, such as ability to pay, the benefits principle and economic allegiance, provide a normative justification for asserting tax jurisdiction. Despite the criticism regarding their vagueness, indeterminateness, and overlaps between their meaning, the benefits principle and economic allegiance have a definite function in the international tax regime insofar as they designate the countries that have a legitimate claim to tax international income. Pillar One, international tax coordination, equity in international taxation, internation equity, legitimacy, principles, justification of taxation, justification of tax jurisdiction, benefits principle, economic allegiance.

Assessing The Country’s Legal Framework for Taxing Digital Transactions: A Basis for Recommending Policy Measures

This study aims to assess the country’s legal framework for taxing digital transactions. Specifically, the extensiveness of which the provisions of the legal framework can implement the value of digital transactions to taxpayers. This study employs a qualitative method by reviewing and further analyzing relevant case studies, recent gap analysis, policies, and literature on taxing digital transactions, and conducting interviews with policy experts from the Bureau of Internal Revenue (BIR). Recent study recommends enhanced policy measures based on the findings on new digital technology and its possible interactions with both current and proposed tax policies, three (3) policies were recommended. First, optimizing existing authority to tax over online platforms. Second, to have a digital-ready tax administration. Finally, to have an expanded and continued investigation for enhancement and liability regarding these digital transactions. Findings include that the BIR doesn’t have enough systems to capture all revenue-generated digital service providers and is unable to track all revenue-generating digital platforms. The Philippines should continue improving taxing rights and administration pursuant to modern times. This study concluded that digital platforms can be designated as withholding agents, improve communication channels with these digital platforms and tie them up with BIR exclusively for data access, and finally, a centralized BIR portal where all digital service providers will be registered and monitored. This will be the tax platform for online transactions that is convenient and accessible for taxpayers and is deemed a highly resilient revenue generation and imposition of tax administration as time changes.

Taxation of Income of International Transportation under the Tax Treaty Framework: An Undesirable Compromise for the Source Countries?

Under the tax treaty framework, the taxing rights of income from international transportation is allocated exclusively to the country of residence or country of the place of effective management. The basis of such a tax policy is stated to be administrative inconvenience in allocating income over jurisdictions. However, this long-standing policy is questionable on several grounds in light of its fundamental inconsistency. Furthermore, tax treaty rules often influence domestic tax systems leading to tax competition amongst countries to attract businesses and, therefore, would undermine the international tax system, also creating opportunities for tax avoidance. It should also be considered that, in an analogous situation in the case of digitalized businesses, the debate on Pillar One shows that, at least theoretically, a solution for the allocation of global income to various market countries can be envisaged. Against this backdrop, this study re-examines the present policy and tax treaty framework regarding income from international transportation and provides a more consistent solution that would usher in tax certainty without creating opportunities for tax avoidance.