Original scientific paper
EXAMINATION OF THE PRINCIPLE OF EQUITY AS A CRITERION FOR NORMATIVE ANALYSIS OF THE RULES OF INTERNATIONAL TAX LAW
Stjepan Gadžo
; Faculty of Law, University of Rijeka
Abstract
Current moment in the realm of international taxation is marked by the overhaul of existing rules and practices, which is inextricably tied to the effects of the latest global economic crisis. In particular, largest multinational corporations (MNCs) and wealthy individuals face criticism due to the growing public perception that they do not pay their “fair share” in taxes for public financing. From a theoretical perspective, such arguments – which are picked up by the politicians – are often devoid of any content, largely due to the inherent vagueness of the principle of tax equity. Main aim of this paper is to explore the contents of the principle of equity, one of the principal normative yardsticks for national tax systems, in the light of international tax law. We start from the hypothesis that the substance of equity in international setting ought to be searched for along the facet of distribution of total world tax base among sovereign states (so-called “inter-nation equity”), rather than along the facet of inter-taxpayer equity, which matters in the exclusively domestic setting. This is a necessary corollary of the acceptance of paradigm of state sovereignty in tax matters, which provides legal underpinning to the existing system of international tax law.
Keywords
tax equity principle; international tax law; state sovereignty; inter-nation equity; taxation of multinational companies
Hrčak ID:
147835
URI
Publication date:
30.8.2015.
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