Szudoczky, Rita
Principles justifying the reallocation of taxing rights to market jurisdictions do we need them? electrónico / Rita Szudoczky
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.
FISCALIDAD INTERNACIONAL
PRIMER PILAR (OCDE)
Intertax 0165-2826 v. 51, Issue 12, December 2023, p. 822-839
Principles justifying the reallocation of taxing rights to market jurisdictions do we need them? electrónico / Rita Szudoczky
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.
FISCALIDAD INTERNACIONAL
PRIMER PILAR (OCDE)
Intertax 0165-2826 v. 51, Issue 12, December 2023, p. 822-839