Naslov
The market as a tax nexus : the old, the new and the unknown

Autori
Gadžo, Stjepan

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
Tax nexus and jurisdiction in international and EU law

Urednik/ci
Traversa, Edoardo

Izdavač
International Bureau of Fiscal Documentation (IBFD)

Grad
Amsterdam

Godina
2022

Raspon stranica
19-51

ISBN
978-90-8722-796-8

Ključne riječi
tax jurisdiction ; international tax law ; nexus ; permanent establishment ; BEPS

Sažetak
Aim of this chapter is to contribute to the academic debate on the role the market has, or rather should have, in the formulation of nexus rules. The particular objective is to outline the evolution of the idea that the market state may exert a legitimate taxing claim, regardless of any further points of reference a taxpayer has in its territory. The chapter evolves as follows. Section 2 provides an introduction to the idea of a market-based nexus, drawing on the policy underpinnings of taxation at source. It asserts that the benefits principle, as a primary normative justification for source-based taxation, provides strong support to the taxing claim of the market jurisdiction vis-à-vis non-resident taxpayer accessing and exploiting its market. While the location of taxpayer’s customers may be deemed as a proxy for benefits received by the government, it can be also used to designate geographic source of income, in line with the so- called “supply-demand approach”. Further evidence that there is no innate theoretical incompatibility between source-based taxation and the market may be found in actual international tax rules, including the ubiquitous PE concept. Section 3 proceeds with an analysis of how the market-based approach to nexus has evolved within the BEPS project, culminating in the allocation of a new taxing right to market jurisdictions under Pillar One. Section 4 contains concluding remarks and comments.

Izvorni jezik
Engleski

Znanstvena područja
Pravo

POVEZANOST RADA