Theory and practice of international tax law

A.Y. 2021/2022
Overall hours
Learning objectives
The course provides with the History, Philosophy, Politics and Economics (HPPE) aspects of international taxation, including: 1) a comprehensive overview of the fundamental principles of taxation written by Adam Smith in "The Wealth of Nations" back to 1776; 2) a comprehensive overview of the fundamental principles of international taxation contained in the "Report on Double Taxation" written for the League of Nations by Proff. Bruins, Einaudi, Seligman and Stamp, back to 1923, as well as in the following recommendations of other international Organizations (i.e. the Model Tax Convention and its Commentary, the BEPS project and the CRS of the OECD); 3) a comprehensive overview of the fundamental principles of international tax law embodied in customary law as well as in supranational law (i.e. European tax law). The course also aims to get into practice describing the most common tax regimes of multinational enterprises as well as the International tax avoidance, evasion and fraud techniques in order to demonstrate that countries are no longer free to adopt international tax rules they please but, rather, are obliged to operate in the context of circulating tax models, which change in the same ways international law changes over time. It is still possible to imagine unilateral actions, and sometimes there are indeed, but they more often generate unpredictable counteractions in the matrix of globalization. This is the reason why international and supranational Organizations (i.e. OECD and EU) are becoming conscious to propose coordinated actions that respect the basic principles of international tax law.
Expected learning outcomes
The course aims to support students with the best preparation in order to decide whether to continue the scientific research in the field of international taxation within universities, research centers or international organizations as the Organization for Economic Cooperation and Development (OECD), the United Nations (UN), the World Bank (WB), the World Trade Organization (WTO) and the International Monetary Fund, or supranational organizations like the European Union. Those students who are more interested into the practice of business and/or law, may have the opportunity to continue their career in international taxation assisting corporations and individuals within a law firm or by working within an international tax department of a multinational enterprise
Course syllabus and organization

Single session

Lesson period
First semester
Teaching methods
The lessons will be held in presence according to the timetable of the lectures - as they will be recorded and uploaded on that same platform.

Course syllabus and teaching resources
The content and reference material will not be changed. The students must refer to all the video-lessons, teaching materials and digital content made available on the online course, in addition to the bibliography found in the program.

The exam is oral and takes place in presence, according to the indications provided on Ariel by the professor.

In the event of new health restrictions, any further information and updates regarding the course structure will be published by the professor on Ariel.
Course syllabus

1 The Dark Side of International Taxation and International Tax Law: The History, Philosophy, Politics and Economics (HPPE) Approach Between Double Taxation and Double Non Taxation
2 History of International Taxation
3 Philosophy of International Taxation
4 Politics of International Taxation
5 Economics of International Taxation
6 International Taxation as International Law
7 The Nexus for Worldwide Taxation: Nationality v. Residence
8 The Tax Residence of Individuals
9 The Tax Residence of Corporations and The Apple Double Irish with Dutch Sandwich
10 The Nexus for Territorial Taxation: the Beneficial Ownership
11 The Missing Traditional Distinction Between Passive Income and Active Income
12 Outbound Taxation: The Scope of Controlled Foreign Companies (CFC) Legislation
13 Inbound Taxation: The Missing Genuine Nexus to Land: The New Concept of "Digital" Permanent Establishment of Foreign Taxpayers
14 The Scope of Transfer Pricing Legislation and its Methods
15 The Sources of International Tax Law: The OECD Model Tax Convention
16 The Fundamental Principles of European Tax Law
17 The Tax Leaks Scandals (LGT Bank, UBS, HSBC, LuxLeaks and Panama Papers), the Tax Whistleblowers and the Abuse of Offshore Centers
18 The Base Erosion Profit Shifting (BEPS) Project of the OECD Against Aggressive Corporate Tax Planning Within the Digital Economy
19 The beneficial ownership principle
20 The Sources of International Exchange of Tax Information Against International Tax Evasion and Fraud
21 Which Rights for the International Taxpayer?
Prerequisites for admission
A Tax law course is a preferable precondition for foreign students, it is a compulsory for Italian students.
Teaching methods
The attendance of the course is highly recommended. Case studies, seminars and visits shall be carried out during the course and shall constitute part of the final assessment.
Teaching Resources
REUVEN S. AVI-YONAH, Advanced Introduction to International Tax Law, Edward Elgar Publishing, latest edition; (compulsory reading)
GIUSEPPE MARINO, The Dark Side of International Tax Law (The Offshore Shadow), class notes published in the Ariel webpage.
GIUSEPPE MARINO, International and European Measures for De-offshoring: Global Ambitions and Local Hypocrisies, Intertax, vol. 46/8-9, 2017 (suggested reading)
CHARLES ADAMS, For Good and Evil, The Impact of Taxes on the Course of Civilization, Madison Books - Lanham Maryland, USA, 2001; (suggested reading)
PROFESSORS BRUINS, EINAUDI, SELIGMAN AND SIR JOSIAH STAMP, Report 1806 on Double Taxation, LEAGUE OF NATIONS, 1923; (suggested reading)
OECD/G20, Base Erosion Profit Shifting, at (suggested reading)
SUNITA JOGARAJAN, Double Taxation and The League of Nations, Cambridge Tax Law Series, 2018 (suggested reading)
WILLIAM VLCEK, Offshore Finance and Global Governance, Palgrave Macmillan, London, 2017 (suggested reading)
TSILLY DAGAN, International Tax Policy: Between Competition and Cooperation; Cambridge Tax Law series, 2017 (suggested reading)
BRADLEY C. BIRKENFELD, The Lucifer's Banker, Greenleaf Book Group, 2018 (suggested reading)
Assessment methods and Criteria
The final exam shall consist of an oral conversation and shall be based on the topics carried on during the classes.
IUS/12 - TAX LAW - University credits: 6
Lessons: 42 hours
Professor: Marino Giuseppe