A Destination-Based Corporate Tax

1. School of Law A Destination-Based Corporate Tax RITA DE LA FERIA Professor of Tax Law, University of Leeds 2 June 2017 EATLP Congress 2017, Lodz

2. OUTLINE • Current International Tax Rules • Why current rules are no longer suitable • BEPs and other anti-avoidance rules • Proposals for Reform • Substantive Jurisdiction • Legitimacy • Inter-nation equity • Enforcement Jurisdiction • Identifying destination • Compliance obligations • Legal obligations • Conclusions

3. UNSUITABILITY OF CURRENT RULES • Always questions over its inter-nation equity, and effects on developing countries • But a “flawed miracle”, where jurisdiction to tax was clear • Created for 1920s economy, started to falter with globalisation • Mobility of factors of production meant jurisdiction to tax no longer clear

4. UNSUITABILITY OF CURRENT RULES

5. UNSUITABILITY OF CURRENT RULES

6. UNSUITABILITY OF CURRENT RULES COUNTRIES THAT CONTRIBUTE TO PRODUCTION OF A SINGLE JAR OF NUTELLA

7. BEPS AND OTHER ANTI-AVOIDANCE RULES

8. BEPS AND OTHER ANTI-AVOIDANCE RULES

9. PROPOSALS FOR REFORM

10. PROPOSALS FOR REFORM Criteria for Reform of CIT

11. PROPOSALS FOR REFORM Is Destination the Location Which Creates Least Distortion To Economic Behaviour?

12. SUBSTANTIVE JURISDICTION TO TAX

13. SUBSTANTIVE AND ENFORCEMENT JURISDICTION TO TAX

14. SUBSTANTIVE JURISDICTION TO TAX

15. SUBSTANTIVE JURISDICTION TO TAX

16. ENFORCEMENT JURISDICTION TO TAX

17. CONCLUSIONS

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