INTERNATIONAL TAX LAW

The teaching falls within the core educational activities of the Master’s Degree Programme in Management (curricula: International Management and Accounting and Finance).
The teaching objectives are the understanding and study of the main concepts, principles and legal sources of international and European tax law, as well as the analysis of some selected contemporary issues, such as the taxation of cross-border transactions, the analysis of the difference between legitimate and illegitimate tax planning, and the basics of transfer pricing.
The objective is to ensure that experts in management have a proper knowledge of the most relevant aspects of international and European taxation in their work, where they are confronted with opportunities and issues caused by significant transformations in economic models at both national and international levels.
During the lectures attention will be paid to the measures that are taken by the EU and the OECD with respect to the taxation of multinationals. The background and impact of these measures will be discussed. The course will include case studies to improve understanding of underlying rules.

1. Knowledge and understanding: Knowledge and ability to define and understand the legal sources and principles of international and European tax law (including relevant case law) - Knowledge and ability to identify the rationale of the rules studied to evaluate their effectiveness, merits, and shortcomings.

2. Ability to apply knowledge and understanding: Ability to apply acquired knowledge to solve concrete interpretative and applicative problems in transnational situations - Ability to develop an argumentation defending a particular tax position in a trans-national situation like those analysed during the course.

3. Capacity for critical judgement: Ability to suggest alternatives to existing solutions to meet the specific needs tackled by the legal sources that have been studied - Ability to give a critical and reasoned opinion on issues tackled - Ability to communicate opinions and acquired knowledge clearly and with appropriate vocabulary to both specialist and non-specialist interlocutors.

4. Communication skills: Ability to argue in a clear manner and using proper terminology the reasons in favour of a certain choice in a specific applied situation or in favour of an alternative solution to that proposed by others or by existing rules.

There are no specific pre-requirements.

1. The basics of Tax Law

2.1. Overview of the basics of International Tax Law:
Concepts, principles, and sources of international tax law (tax residence of physical and legal persons – types and causes of double taxation and non-taxation – Capital Import Neutrality (CIN) and Capital Export Neutrality (CEN) – rationale of tax conventions in international law)

2.2. Jurisdiction to tax and the tax treaty network:
The importance of the OECD Model Convention
The interpretation of the OECD Model Convention (the Vienna Convention)
The structure of the DTCs (the persons covered – the taxes covered – the allocation rules – the methods for the elimination of double taxation – the concept of permanent establishment – the concept of treaty shopping)
The arm’s length principle
Current issues of International Tax Law

3.1. Overview of the basics of European tax law:
Taxes in EU Treaties and general EU Law concepts in the field of direct taxation (positive and negative integration – four freedoms – non-discrimination)

3.2. Corporate Taxation - Positive integration
The source of European Corporate taxation
Taxation of dividends in cross-border situations: Parent-Subsidiary Directive
Taxation of interests and royalties in cross-border situations: Interest and Royalty Directive
Anti-Tax Avoidance Directive (ATAD)
Controlled Foreign Companies from case law to ATAD

3.3. Corporate Taxation - Negative integration
Negative integration under the four freedoms (the rule of reason test - most relevant case law)
Negative integration and state aids

4. Transfer pricing
The transfer pricing problem
The classical methods: advantages and disadvantages

5. To sum up
Arm’s length principle, Transfer Pricing and state aids (the Fiat Chrisler case)

Those who attend lectures:
Material provided during classes (available on Moodle)

Those who don't:
1) M. Lang, Introduction to the Law of Double Taxation Conventions, 3rd edition, 2021 – Ch. 1, 6, 7, 8, 9 (9.1 – 9.9)
2) C. Hji Panayi, European Union Corporate Tax Law, 2nd edition, Cambridge University Press, 2021 - Ch. 2 (2.1 – 2.3), 3
3) Any further material available on Moodle

Or:
1) L. Tosi, R. Baggio, International tax law in the italian legal system, 2023
2) Materiale fornito sulla piattaforma Moodle

Or:
1) M. Lang, Introduction to the Law of Double Taxation Conventions, 3rd edition, 2021 – Ch. 1, 6, 7, 8, 9 (9.1 – 9.9)
2) P. J. Wattel, O. Marres, H. Vermeulen, European Tax Law Seventh Edition, Volume I, 2018 – Ch. 3, 6, 10
3) Any further material available on Moodle

The examination consists of a written part (4 open questions - simulations available on Moodle) and an oral part (1 or 2 questions).

As far as the evaluation is concerned, it will be carried out taking into consideration the expected learning outcomes and the content of the course. In particular:
1. the knowledge of concepts, rules and principles examined;
2. the ability to make connections between the different parts of the program;
3. the accuracy and completeness of the exposition;
4. the ability to use the appropriate notions and terminology;
5. the ability to frame the topics and problems proposed in a systematic manner, also taking into account the case law examined in the lessons;
6. the ability to develop adequate and critical analyses of the proposed issues.

More specifically, the final grade will be decided according to the following criteria:
1. Preparation with regard to the topics addressed: sufficient, fair, very good or excellent.
2. Critical and argumentative capacity: sufficient, fair, good or excellent.
3. Use of technical-legal language: difficulty in using technical-legal language, acceptable use, good use or complete mastery.

Teaching will be divided into lectures with some frontal teaching and some student involvement. The active participation of students is expected, especially with regard to the selected contemporary issues and case law.

English

written and oral

This subject deals with topics related to the macro-area "International cooperation" and contributes to the achievement of one or more goals of U. N. Agenda for Sustainable Development