Essay About Public International Law And International Taxation

Introduction to International Taxation
Introduction to International Taxation
THE JURISDICTION TO TAX AND PUBLIC INTERNATIONAL LAW
The essence of the subject of international taxation is the issue of whether, and
to what extent, a country has the right to tax an individual or a company. In legal
terminology, what is its jurisdiction to tax? This is a matter of public international law.
A study of international taxation requires familiarization with both domestic taxation
laws of individual countries and international tax law. There is no international “tax
system” as such; each country has its own domestic system, which has often
developed over a long period of time. A countrys domestic laws will provide for how
it intends to tax its residents and also what types of receipt it wishes to bring into the
tax net.
International tax law, according to Qureshi (1994) consists of customary
international law and international agreements. It covers the right of a state to tax, tax
treaties and dispute settlement where it is unclear what the respective taxing rights of
two states are. It may extend to protocols for exchange of information on taxpayers.
The sources of international tax law are difficult to pinpoint, as public international
law is often a matter of acceptance and interpretation by the countries affected. In
summary, there are certain international agreements which constitute international law
and the rest is merely customary.
The question is: what determines the right of a country to levy tax on a person
or company? What connection, if any, need there be between taxpayer and the taxing
authority? Most countries use the principles