L14700 International Tax Law

Scuola di Diritto
Syllabus
Academic Year 2019/20 First Semester

foto
Docente TitolareMarco Cerrato
E-mailmcerrato@liuc.it
Office"Torre" (main tower), 3rd floor
Phone0331 572370

Learning Objectives

This course is designed to provide the full understanding of the main principles and methodologies to allocate taxing rights at international level.

Learning targets

At the end of the course students will have knowledge of the international tax rules aimed at preventing double taxation on international business and cross border transactions and of the trends for combatting international tax evasion and frauds.

Course Content

The course will be held mainly by prof. Marco Cerrato. Prof. Zizzo will give a lecture on International double taxation and Abuse of Law in the International tax context. Experienced professionals will provide case studies on Abuse of Law and Tax Avoidance and hold a workshop focusing on Mutual Agreement Procedures.

The main part of the course is focused on the allocation rules designed by double tax conventions in order to prevent international double taxation. Attention will be paid to the role of the OECD and other international organizations in providing instruments (Model tax conventions and Commentary) aimed at preventing international double taxation. In particular, through a detailed analysis of the main items of income governed by the OECD Model Convention, the students will be dealing with the general principles of tax allocation rights. In respect to each item of income, the analysis shall start with the relevant definition and it will be concluded with some practical examples, which are intended to complete the learning path with the review of some case laws or administrative practices.

The course will also address the efforts to counteract tax avoidance, evasion and tax frauds at international level through a series of actions aimed at preventing base erosion and profit shifting (BEPS).

Course Delivery

The course will run under both seminar and workshop format, which requires active students’ involvement.

Participants to the classes will be supported in the analysis above through the discussion of jurisprudence and administrative cases, as well as by other practical cases and related materials.

Participation to classes is strongly recommended.

Course Evaluation

All students should pass an oral exam. The exam will take place remotely using Microsoft Teams.

For those students attending classes, grade will duly take into consideration class participation (20%).

Syllabus

Session 1
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

International Double Taxation and General Introduction to Tax Treaty Provisions

  1. Definition of International Tax Law
  2. Jurisdiction to tax
  3. Conflicts between personal and objective criteria
  4. The role of tax treaties
  5. OECD Model Tax Convention and other Models

Readings:

Session 2
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Tax residence of individuals

  1. The concept of "Residents of a contracting State"
  2. The concept of "Liable to tax"
  3. Art. 4 OECD MC
  4. Domestic criteria for residence of individuals
  5. Country practices
  6. Tiebreaker rule for individuals
  7. Impact of residence determination for individuals
  8. Case studies

Readings:

Session 3
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Tax residence of companies

  1. Domestic criteria for residence of companies
  2. Country practices
  3. MLI and Dual Resident Entities
  4. Tiebreaker rule for companies
  5. Impact of residence determination for companies
  6. Residence as an anti-avoidance measure
  7. Case studies

Readings:

Session 4
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Material permanent establishment

  1. Legal framework
  2. Material PE

Readings:

Session 5
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Agency Permanent establishments and Digital Economy

  1. Agency PE
  2. Corporate control - Italian case law
  3. Commissionaire arrangements
  4. Case studies
  5. Tax challenges posed by the digital economy

Readings:

Session 6
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Investment Income: Dividends, Interest, Royalties

  1. Dividends (Art. 10)
  2. Interest (Art. 11)
  3. Royalties (Art. 12)

Readings:

Session 7
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Parent Subsidiary Directive, Interest Royalties Directive and Beneficial Ownership

  1. Parent-Subsidiary Directive
  2. Interest-Royalties Directive
  3. The concept of "beneficial owner”

Readings:

Session 8
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Income from immovable property, income from employment  and other income

  1. Income from immovable property (Art. 6)
  2. Income from employment (Art. 15)
  3. Directors' fees (Art. 16)
  4. Entertainers and Sportspersons (Art. 17)
  5. Pensions (Art. 18)
  6. Government Service (Art. 19)
  7. Students (Art. 20)
  8. Other income (Art. 21)

Readings:

Session 9
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Shipping and capital gains

  1. Shipping, inland waterways transport and air transport (Art. 8)
  2. Definition of capital gains (Art. 13)
  3. Tax values and tax deferral
  4. Art. 13 OECD MC
  1. Participation Exemption

Readings:

Session 10
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Transfer pricing

  1. Transfer pricing (Art. 9)
  2. The Arm's length principle
  3. Application of the ALP: Comparability analysis
  4. Transfer pricing methods
  5. Transfer pricing and transactions involving intangibles

Readings:

Session 11
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Business profits and attribution of income to PE

  1. Art. 7 OECD MC
  2. Authorized OECD Approach
  3. Case studies

Readings:

Session 12
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Abuse of law and tax treaty abuse

  1. The concept of tax evasion and tax avoidance
  2. Tax treaty override
  3. The concept of tax treaty abuse and treaty shopping
  4. Anti-avoidance measures: thin-capitalization rules and CFC rules
  5. BEPS Project and Multilateral Convention

Readings:

Session 13
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Relief from double taxation

  1. Deduction method
  2. Exemption method
  3. Full exemption vs. Exemption with progression
  4. Credit Method and its limitations
  5. Allocation of expenses
  6. Tax Sparing
  7. Participation Exemption
  8. Indirect or underlying credit
  9. Art. 24: Non-discrimination clause

Readings:

Session 14
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Mutual Agreement Procedure

  1. Art. 25 OECD Model
  2. MAP pursuant to Bilateral Double Convention
  3. MAP pursuant to EU Arbitration Convention
  4. MAP pursuant to Directive 2017/1852
  5. Case studies

Readings:

Session 15
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Exchange of information and assistance in the collection of taxes

  1. Exchange of information on request: Art. 26 OCD Model
  2. EU Directive on administrative cooperation in the field of taxation
  3. OECD Model Agreement on Exchange of Information on Tax Matters
  4. Automatic exchange of information
  5. Directive 2018/822/EU of 25 May 2018
  6. Assistance on the collection of taxes: Art. 27 OECD Model
  7. Directive 2010/24/EU of 16 March 2010
  8. Strasbourg Convention

Readings:

Session 16
Hours of lesson: 0
Instructor: M. Cerrato

Topics:

Exchange of information and assistance in the collection of taxes

Arts 26 – 27 OECD MC

Readings:


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