EDUKASI PERPAJAKAN: UNDANG-UNDANG KETERBUKAAN INFORMASI KEUANGAN SEBAGAI SARANA MEMBANGUN KESADARAN BAYAR PAJAK MELALUI PENDIDIKAN PERGURUAN TINGGI YOGYAKARTA

The large number of people who avoid taxes has made the government look for effective and efficient alternatives to enforce an orderly and legally correct manner, namely by issuing the Law on the Disclosure of Financial Information. The Law on Financial Information Disclosure was published on 23 August 2017. Access to financial information for tax purposes includes access to receive and obtain financial information in the context of implementing the provisions of laws and regulations in the field of taxation and the implementation of international tax treaties. This study aims to analyze how much influence tax education can have on building tax awareness, to analyze how much the Financial Information Disclosure Act is known and understood by prospective taxpayers and taxpayers, and to analyze the effect of the Law on the Disclosure of Financial Information to make Personal Taxpayers. pay taxes orderly. The research method used is Path Analysis. Keywords: tax education, disclosure of financial information, tax compliance funds

The acts of the EU tax law and double tax treaties: the problems of correlation in establishing anti-tax avoidance rules

The subject. The specifics of the functioning of tax systems and the risk of double taxation require a solution to the issue of whether tax competence can remain only at the national level. Modern cross-border tax relations operate within a multi-level system of legal regulation based on the norms of international, supranational and national lawThe difficulties of correlating these levels are rooted in the fact that, in accordance with international law, each State has the right to tax persons or transactions with which it has a sufficient connection. Different situations may occur when both countries believe that the taxpayer is their resident, or when each of them claims that the income was received in this state. States solve this problem both unilaterally with the help of national legislation, and on a bilateral basis with the help of a double tax treaty.With the adoption of the Action Plan aimed at combating the erosion of the tax base and the withdrawal of profits (hereinafter referred to as the BEPS plan) and the EU Council Directive 2016/1164 (ATAD), tax strategies for using gaps and inconsistencies in tax rules to artificially transfer profits to low-tax jurisdictions were limited.Purpose of the study. The article discusses possible scenarios arising from the interaction of tax agreements and acts of EU tax law. It is necessary to take into account the obligation of the Member States to eliminate inconsistencies between acts of national legislation and acts of EU law. Member States have committed to achieve this goal at the time of EU accession and, therefore, before the adoption of any secondary EU law.Methodology. The research was carried out with the application of the formally legal interpretation of legal acts as well as the comparative analysis of international and European legal literature. Structural and systemic methods are also the basis of the research.The main results. Due to the clear coordination between the European Union and the OECD of actions in terms of establishing common measures to combat tax evasion and focusing on the subjective element of assessing potential abuse situations, a new standard for combating tax evasion has been established.Сonclusions. The author comes to the conclusion that the priority of the EU law over DTTs has been established. However, Member States retain the right to establish their own tax regimes and enter into tax treaties, thereby creating conflicts in legal regulation. In order to be directly applicable, the norm of the treaty must be clearly and definitely formulated, as well as be unconditional and independent of any national implementation measures.National legislation provides measures to eliminate the legal multiple taxation only for its residents. On the other hand, with respect to tax agreements concluded with third countries, the predominance of one system over another depends on the specific scenario, and in some cases the result achieved is the result of interpretation of existing provisions. In particular, tax treaties should prevail only when concluded before a state joins the EU.

Tax Treaties and Enterprise Outcomes: Evidence Across Developing African Countries

Studies have noted the possibility of tax treaties constraining the tax policy autonomy of developing countries, while their impact on enterprise development within host economies remains an empirical issue. This study examines the effects and heterogeneous differences in estimated effects of tax treaties on small businesses in developing countries that agree to these agreements. The study uses the ICTD tax treaties dataset and the World Bank Enterprise Survey data to set up a quasi-experiment framework for selected African Countries. The framework compares countries’ outcomes for small businesses that ratify and enforce a tax treaty and those without a ratified tax treaty for the years pre-2005–2010 and post-2011–2019). We find that tax treaties signed and enforced by developing countries in Africa have a consistent, negative relationship with small business outcomes. These results are driven by the enterprise’s size and internationalisation status but not by the subsidiary status of the sampled small businesses. The findings have implications for policy targeted towards industrial development alongside tax treaty negotiations.

Tax Treaty Aggressiveness: Who is Undermining Taxing Rights in Africa?

Tax avoidance strategies by multinational companies rely heavily on tax treaties. Multinational companies can relocate financial activities across countries to ensure the applicability of the most beneficial tax treaties. This ‘treaty shopping’ can be particularly harmful to African countries, impairing their efforts for domestic resource mobilisation and achieving sustainable development goals. In this paper, we analyse the aggressiveness of tax treaties towards African countries – the extent to which signing tax treaties reduces the taxing rights of African governments. We find that treaties signed with France, Mauritius and the United Arab Emirates reduce withholding tax rates the most, while treaties signed with European countries – and, in particular, the United Kingdom and France – greatly limit other taxing rights, for example, by restricting the scope of permanent establishment definition.

Taxing Profits from International Maritime Shipping in Africa: Past, Present and Future of UN Model Article 8 (Alternative B)

International maritime shipping is an essential part of global business. Since the establishment of the current international tax regime in the 1920s, there has been a consensus that profits generated by this business are taxable only in the residence state –the state where the shipowners are located. Source states – the port states where business physically takes place – are generally expected to exempt income from international shipping. This standard is currently reflected in Article 8 of the OECD Model and Article 8 (Alternative A) of the UN Model, and is incorporated in the vast majority of bilateral tax treaties currently in force. Exclusive residence state taxation of shipping profits is problematic when the size of mercantile fleets and shipping flows between two states are of unequal size. This is often the case in relations between a developed and developing country. The latter often lack a substantial domestic mercantile fleet, but serve as an important revenue-generating port state for the fleet of the developed country. To come to a more balanced allocation of taxing rights in such a case, a source taxation alternative has been inserted in UN Model Article 8 (Alternative B). From its inception, Article 8B has been labelled impractical due to the lack of guidance on core issues, like sourcing rules and profit allocation. This gap is said to explain the low adoption rate of Article 8B in global tax treaty practice. In reality, tax treaty practice regarding Article 8B is heavily concentrated and flourishing in a handful of countries in South/South-East Asia – Bangladesh, India, Indonesia, Myanmar, Pakistan, the Philippines, Sri Lanka and Thailand. All these countries subject non-resident shipping income to tax in their domestic income tax laws. Except for India, all countries are able to exercise these domestic tax law rules in relation to shipping enterprises located in the biggest shipowner states, either because they have a treaty in place that provides for source taxation or because there is no treaty at all and thus no restriction of domestic law. None of the relevant tax treaties contain a provision that incorporates the exact wording of Article 8B of the UN Model. If other countries, like coastal countries in sub-Saharan Africa, are looking to implement source taxation of maritime shipping income in the future, they are advised to draw on the South/South-East Asian experience. Best practice can be distilled regarding sourcing rule, source tax limitation, profit attribution and method of taxation (on gross or net basis). In addition to technical guidance on tax, the South/South-East Asian experience also provides important general policy considerations countries should take into account when determining whether source taxation of maritime shipping profits is an appropriate target for their future tax treaty negotiations.

Latin American Opposition to Mandatory Arbitration in Tax Treaties

The international tax regime has recently made large strides toward a reform of its dispute resolution mechanism. Long-anticipated, mandatory tax treaty arbitration is finally gaining legitimacy beyond limited use by a few countries. Yet, the opposition to international arbitration among developing countries, led by Latin American countries, has not waned. This Article tracks this opposition to its origins and argues that it is misguided in the case of tax treaty arbitration, which such countries should rather generally support.

2 Sources of the International Law of Taxation

Chapter 2 is the main part of the book and it is structured along the different sources of the international law of taxation. This includes (i) treaties, (ii) customary international law, (iii) general principles of international law, and (iv) soft law. The chapter contains a comprehensive outline of the functioning of double tax treaties and other treaties focusing on tax matters such as treaties on mutual exchange of taxpayer information. The entire OECD MC is discussed and reference is made to brief case studies in order to allow the reader a better understanding of the international tax regime. A particular focus is in on the functioning the allocation rules in Arts 6–22 OECD model convention, however, this chapter also includes general remarks on the interpretation of tax treaties and soft law used in international tax matters. The chapter closes with a concise overview of the EU tax system.

Reservations and declarations to tax treaties

The subject of the article. The article represents a research of conceptual properties and issues of applying reservations and declarations to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, developed in frames of implementing the OECD/G20 Action Plan on Base Erosion and Profit Shifting (BEPS). The Multilateral Tax Convention modifies the application of agreements for avoiding double taxation, that are covered by its action. Since January 1, 2021 it has been applied to 34 agreements for avoiding double taxation between the Russian Federation and such countries as the UK, Canada, Latvia, Malta, the Netherlands and France. The Multilateral Tax Convention provides for updating bilateral tax treaties – whether they were developed upon the OECD Model Tax Convention or the UN Model Tax convention. The Convention retains a great degree of flexibility in relation to the implementation of its provisions – especially by the means of reservations, made by the countries.The purpose of the article is to identify the main characteristics of applying reservations and declarations in international tax law.The methodology.The study is based on empirical methods of comparison and description, theoretical methods of formal and dialectical logic.The main results. Reservations have played a minor role in international taxation until now – usually they reflected disagreement, expressed by an OECD member country with the provisions of the OECD Model Tax Convention or its Official commentary. Reservations were formulated in relation to a non-binding (model) document and their importance was limited. Such reservations cannot be associated with declarations, made in relation to legally binding documents like the Multilateral Tax Convention. Analyzing the general points of scientific dispute upon the mentioned range of issues, the author argues with researchers who deem that the structure of reservations to the Multilateral Tax Convention doesn’t correspond with the provisions over reservations in the Vienna Convention on the Law of Treaties, 1969 and thus recognize those reservations as “legal hybrids”.Conclusions. The structure of reservations to the International Tax Convention is deter-mined by the nature of double taxation agreements. The model lawmaking principle (the use of the OECD Model Tax Convention) allowed developing “umbrella” architecture of relationships between the provisions of the Multilateral Tax Convention and the norms of double taxation agreements. The article categorizes types of reservations as reservations of general nature and treaty-specific reservations. The article also considers the specific properties of reservations made in relation to the provisions of the Convention, which com-pose a minimal standard.