scholarly journals Sophisticated Financial Engineering and Tax Arbitrage

Author(s):  
Ronen Palan ◽  
Anastasia Nesvetailova ◽  
with Hannah Petersen ◽  
Richard Phillips

This chapter delves into the inner sanctum of corporate organization in order to find evidence of rise or decline in the use of techniques of tax arbitrage by the corporate sector within the EU region. We follow then with an analysis of the use of sophisticated financial instruments in tax mitigation techniques in the EU to assess the impact of finance-oriented tax mitigation techniques. Our conclusion is not positive. It appears to us that in comparison with the US (and possibly China), the European fiscal regime failed to address a core political issue. These political conditions encourage the use of those diverging rules and regulations one against the other and affect jurisdictional arbitrage with the overall aim of tax mitigation. Europe is emerging as the playground for international corporations’ tax arbitrage and financial techniques of tax mitigation.

2021 ◽  
Vol 21 (4) ◽  
pp. 772-784
Author(s):  
Yury V. Borovsky

In the early 2020s the worlds transition from carbon-intensive to climate-neutral energy use has already become a discernible and a difficult-to-reverse process. With Joe Bidens election as US president, the United States have returned to the Paris Climate Agreement and have become a key driver of this process (along with the EU and China). As a result, the international community has reached a consensus on the ongoing energy transition. This process will require considerable effort and may take several decades. Nevertheless, the impact of energy transition on traditional approaches to energy security, which emerged largely as a result of the global oil crises of the 1970s and 1980s and are centered around the supply of fossil fuels, is already a relevant research topic. This problem is examined relying on the relevant terminological, theoretical and factual material. The article concludes that energy transition will ultimately undermine the carbon paradigm that has underpinned energy security policies since the 1970s. Rapid development of renewable and other low-carbon energy sources will certainly remove key energy security risks of energy importers and, possibly, allow them to achieve energy independence. However, a post-carbon era may also generate new risks. For countries that rely heavily on oil, gas and coal exports, energy transition will result in the loss of markets and revenues. It may present an energy security threat for them as well as it will require a costly and technologically complex process of the energy sector decarbonization. Some exporters, especially those with high fuel rents and insufficient financial reserves, may face serious economic and social upheavals as a result of energy transition. The EU and the US energy transition policies reflect provisions of all three fundamental international relations theoretical paradigms, including realism. This means that the EU and the US policy, aimed at promoting climate agenda, may be expected to be rather tough and aggressive. China as the third key player in energy transition is still following a liberal course; however, it may change in the future.


Author(s):  
Juan Fernando López Aguilar

Desde los primeros capítulos de la construcción europea con el Tratado de Roma (1957) que cumple 60 años, la jurisprudencia dictada por el Tribunal de Justicia ha sido determinante para la dimensión constitucional del ordenamiento comunitario. En una secuencia de decisiones históricas, el TJ ha afirmado su primacía, eficacia vinculante y su unidad garantizando su interpretación y aplicación uniforme, pero también, sobre todo, los derechos fundamentales dimanantes de las tradiciones constitucionales comunes como fuente del Derecho europeo (principios generales). Esta doctrina se consolida en Derecho positivo, al fin, con la entrada en vigor del Tratado de Lisboa (TL) en 2009, incorporando el TUE, el TFUE, y, relevantemente, la Carta de Derechos Fundamentales de la UE (CDFUE) con el «mismo valor jurídico que los Tratados» y, consiguientemente, parámetro de validez de todo el Derecho derivado, así como de enjuiciamiento de la compatibilidad de la legislación de los EE.MM con el Derecho europeo.La doctrina del TJUE sobre derechos fundamentales ha sido su proyección sobre la protección de datos en el marco de los derechos a la vida privada, a la privacidad frente a la transferencia electrónica de datos y al acceso a la tutela judicial de estos derechos (art. 7, 8 y 47 CDFUE). En ella conjuga los principios de reserva de ley (respetando su contenido esencial) y de proporcionalidad y necesidad de las medidas que les afecten. Pero, además, esta doctrina ha adquirido un impacto decisivo en la articulación jurídica de la relación transatlántica entre la UE y EEUU, confrontando los estándares de protección de datos a ambos lados del Atlántico e imponiendo garantías de un «nivel de protección adecuado» para los ciudadanos europeos. Este artículo examina el impacto de dos recientes sentencias relevantes del TJ —Asunto Digital Rights Ireland (2014) y Asunto Schrems (2015)— sobre el Derecho derivado (Directiva de Conservación de Datos de 2006, Directiva de Protección de Datos de 1995, y Decisión de «adecuación» de la Comisión Europea de 2000) y sobre instrumentos de Derecho internacional (Acuerdo Safe Harbour) entre la UE y EEUU. Impone, como consecuencia, no sólo una negociación que repare las deficiencias detectadas en ambas resoluciones sino una actualización del Derecho europeo (nuevo Data Protection Package en 2016) y una novedosa Ley federal de EEUU que por primera vez ofrece a los ciudadanos europeos acceso al sistema de recursos judiciales ante los tribunales estadounidenses en la defensa del derecho a la protección de datos (Judicial Redress Act, 2016).Right from the first very chapters of the European construction under the Treaty of Rome (1957), which turns 60 this year 2017, the jurisprudence by the Court of Justice has truly been decisive to shape the constitutional dimension of the European Community legal order. In a series of historical decisions, the CJEU has affirmed its primacy, its binding efficacy and unity, while guaranteeing its uniform interpretation and implementation. But it has also, above all, enshrined the fundamental rights resulting from the common constitutional traditions as a source of European Law (i.e general principles). This legal doctrine has been ultimately consolidated in positive Law, finally, with the entry into force of the Treaty of Lisbon (TL) in 2009, incorporating the TEU, the TFEU and, most notably, the Charter of Fundamental Rights of the EU (CFREU) with the «same legal value as the Treaties». Charter Fundamental Rights have turned to be, consequently, a parameter for examining the validity of secondary EU legislation, as well as for scrutinizing and reviewing the standard of compatibility of the national legislation of EU Member States with European law. The legal doctrine of the ECJ on fundamental rights has been particularly relevant in its impact on the data protection in the framework of the rights to privacy, privacy with regard to the electronic data transfer, and access to judicial protection of these rights (art. 7, 8 and 47 CFREU). It combines the principles of reservation of law (in due respect of its essential content) as well as proportionality and necessity for legislative measures that might affect them. But, moreover, this doctrine has had a decisive impact on the legal articulation of the so-called transatlantic partnership between the EU and the US, confronting data protection standards on both sides of the Atlantic and imposing guarantees of an «adequate level of protection» for all European citizens. This paper explores the impact of two recent relevant decisions by the ECJ — its rulings on Digital Rights Ireland case (2014) and on the Schrems case (2015) — upon the secondary EU legislation (Data Retention Directive of 2006, Data Protection Directive of 1995, and the «adequacy» Decision of the European Commission of 2000), as well as upon International Law instruments (Safe Harbour Agreement) between the EU and the US. It imposes, as a consequence, not only a negotiation that remedies the shortcomings detected in both decisions, but also a compelling updating of European law itself (new Data Protection Package in 2016) and a new US federal law, which, for the first time ever, provides European citizens with access to judicial remedies in U.S. Courts in defending their right to data protection (Judicial Redress Act, 2016).


2014 ◽  
Vol 16 ◽  
pp. 289-312
Author(s):  
Niall J Lenihan

AbstractThis chapter addresses the question of how the EU has protected depositors in the financial crisis. The chapter will discuss (1) the impact in Europe of the US system for the protection of depositors, (2) the important changes made to the EU Deposit Guarantee Schemes Directive, first in 2009 in response to the 2007 deposit run on Northern Rock, and then again in 2014 in response to the financial crisis, (3) the decision of the EFTA Court regarding the scope of Iceland’s obligations under the EU Deposit Guarantee Schemes Directive, following the collapse of the Icelandic banking system in 2008, and (4) the introduction of a powerful depositor preference rule throughout the EU, in response to the resolution of the Cypriot banking system in 2013. This chapter argues that the EU has responded to the impact of the financial crisis on bank depositors by enhancing the legal protections available to depositors.


2020 ◽  
Vol 74 ◽  
pp. 03006
Author(s):  
Irena Nesterova

The growing use of facial recognition technologies has put them under the regulatory spotlight all around the world. The EU considers to regulate facial regulation technologies as a part of initiative of creating ethical and legal framework for trustworthy artificial intelligence. These technologies are attracting attention of the EU data protection authorities, e.g. in Sweden and the UK. In May, San Francisco was the first city in the US to ban police and other government agencies from using facial recognition technology, soon followed by other US cities. The paper aims to analyze the impact of facial recognition technology on the fundamental rights and values as well as the development of its regulation in Europe and the US. The paper will reveal how these technologies may significantly undermine fundamental rights, in particular the right to privacy, and may lead to prejudice and discrimination. Moreover, alongside the risks to fundamental rights a wider impact of these surveillance technologies on democracy and the rule of law needs to be assessed. Although the existing laws, in particular the EU General Data Protection Regulation already imposes significant requirements, there is a need for further guidance and clear regulatory framework to ensure trustworthy use of facial recognition technology.


2017 ◽  
Vol 18 (3) ◽  
pp. 67-71
Author(s):  
Simon Crown ◽  
Steven F. Gatti ◽  
Matthias Feldman ◽  
Paul Landless

Purpose An update for firms located outside the European Union of the possible extra-territorial impact of certain provisions in the recast Markets in Financial Instruments Directive and Markets in Financial Instruments Regulation (together referred to as “MiFID2”). Design/methodology/approach The focus is on the issues that are most likely to have an impact on non-EU firms, including buy/sell side financial institutions and private banks. Findings That the impact of MiFID2 will be felt far beyond the EU, particularly in relation to product governance, inducements and dealing commission, trading obligations, position limits for commodity derivatives and the new regime for accessing EU markets. Practical implications Non-EU firms need to assess their interaction with EU clients, counterparties and markets to identify the likely impact of MiFID2. Relevant interaction could include: manufacturing and distribution of financial instruments; the provision of investment research and dealing services to EU clients and trading in instruments which are admitted to trading on EU markets. Originality/value This article will be of interest to “third-country” firms, located outside the EU, but with a European connection, either in terms of European counterparties, investors or accessing European markets.


Author(s):  
Olha Y. Kravchuk ◽  
Volodymyr I. Zabolotnyuk ◽  
Yuliia V. Kobets ◽  
Oksana I. Lypchuk ◽  
Ivanna I. Lomaka

The article examines the impact of the coalition approach in US policy on integration processes in Europe in the post-bipolar era. The aim of this article was to identify the peculiarities of the political situation in the world after a period of escalation of the nuclear conflict. It involved an analysis of sources in the field of coalition approach research in the United States, as well as a comparison of its impact on the political situation and European Union law. The author concluded that there is a lack of proper research in the field of the impact of the coalition approach in US policy in the post-bipolar era, and its impact on integration processes in Europe. Comparing the experience of the EU and the US, it was determined that the awareness of nuclear danger affected the development of a coalition approach in US policy. The study resulted in the identified specifics of the EU’s security policy under the influence of the US coalition approach, where the need to ensure stability and armed security is crucial. Prospects for further research include identifying US influence on Eastern countries.


Author(s):  
Fabiana Accardo

The purpose of this article is that to explain the impact of the landmark decision Schrems c. Data Protection Commissioner [Ireland] - delivered on 7 October 2015 (Case C-362/2014 EU) by the Court of Justice - on the European scenario. Starting from a brief analysis of the major outcomes originated from the pronunciation of the Court of Justice, then it tries to study the level of criticality that the Safe Harbor Agreement and the subsequently adequacy Commission decision 2000/520/EC – that has been invalidated with Schrems judgment – have provoked before this pronunciation on the matter of safeguarding personal privacy of european citizens when their personal data are transferred outside the European Union, in particular the reference is at the US context. Moreover it focuses on the most important aspects of the new EU-US agreement called Privacy Shield: it can be really considered the safer solution for data sharing in the light of the closer implementation of the Regulation (EU) 2016/679, which will take the place of the Directive 95 /46/CE on the EU data protection law?


Author(s):  
Sedat AYBAR

This paper examines the impact of co-operation between Turkey and  the US upon Turkish trade and investments towards the Black Sea  region. The study is particularly important in the conjuncture of the  US withdrawal from the Transatlantic Trade and Investment Partnership (TTIP) and in the wake of signing a free  trade agreement with the EU. An additional matter of importance  relates to the improved Turkey – Russia economic collaboration especially after the “jet” incident and American  involvement with the Middle East. Significant part of the latter is  economic as the US has also explicit economic interests in the  Eastern Meditteranean. A gravity model has been employed using  ordinary least squares on a panel data with fixed effects to analyse aggregate trade. We have also categorized export groups of  Turkey and the US separately. Our findings for both Turkish and the US exports indicate that per-capita GDP of Black Sea countries are  highly persistent and positively correlated with increased efficiency  gains and trade volumes. Regression results show that the US  exports to the EU member countries are on average less than to  those non-EU member Black Sea countries. Hence, we question  whether a possible co-operation between the US and Turkish  companies can help gaining better access to the Black Sea market for their exports.


2021 ◽  
Vol 2 (1) ◽  
pp. 53-59
Author(s):  
Viktoriya Mashkara-Choknadiy ◽  
Yuriy Mayboroda

The pandemic of COVID-19 has influenced all sectors of social life, including the global economy and trade relations. The year of 2020 was marked with significant changes in internal and foreign economic policy of almost all nations. The purpose of the paper is to study the measures taken by the EU and the USA as the world's leading economies to regulate their foreign trade in the global crisis caused by the COVID-19 pandemic. The tasks of the study are to show the influence of the crisis on changes of global trade policy in front of the threat to national security. Methodology. The study is based on the results of statistical analysis of data provided the WTO and the UNCTAD. The authors show an analytical assessment of the foreign trade indicators of the EU and the USA. Methods of comparison and generalization were used to formulate conclusions on regulatory trends in foreign trade of the US and the EU. Results allowed identifying specific features and changes in the regulation of foreign trade of the EU and the US, assessing the impact of the pandemic on their foreign trade. It was found that both mentioned players of the world economy have actively introduced both deterrent and liberalization measures during 2020, which were aimed at providing the domestic market with scarce COVID-related goods. The study shows the transition from export restricting to import liberalizing measures in foreign trade policies from the start of pandemic to the late 2020. Practical implications. Understanding and predicting the possible actions of partners (the US and the EU in this case) in the field of foreign trade regulation is an important practical aspect, which has to be taken into account when developing Ukraine's foreign trade policy. Value/originality. The study of foreign trade policy of the world's leading countries allows us to understand the behavior of governments of the countries that are largely dependent on participation in international trade in their development, to draw conclusions about the most common instruments of foreign trade policy in the time of humanitarian and economic crises.


Author(s):  
Richard Roberts

At the onset of the Global Financial Crisis in 2007 London was one of the two foremost global financial centres, along with New York. London experienced a 12 per cent fall in wholesale financial services jobs in 2008–9, but a recovery got underway in 2010 and London’s wholesale financial services sector staged a wavering advance. But now there were new challenges, in particular the avalanche of financial regulation coming from the UK, the EU, the US and the G20. Fintech engendered new uncertainties. The impact of Brexit was uncertain, but mostly expected to be negative, at least in the short-term. Furthermore, there was growing competition from Asian and other financial centres. Nevertheless, London remained pre-eminent as one of the two largest global concentrations of wholesale financial services activity and at the top of the Global Financial Centres Index.


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