The Costs of International Tax Cooperation

Tsilly Dagan (Bar-Ilan University) published this 2002 article at Michigan Law and Economics Research Paper No. 02-007; and U of Michigan Law, Public Law Research Paper No. 13

Here is theAbstract:

This Article discusses the three levels of international tax (the unilateral, the bilateral and the multilateral). It describes the seemingly appealing arguments (based on cooperation) advocating neutrality, double taxation prevention, and harmonization. A closer look at these arguments, however, reveals that pursuing these goals often brings about completely different and sometimes undesirable results. While acknowledging the potential benefits of inter-nation cooperation for some, this article highlights the (sometimes hidden) costs of such cooperation for others. Thus, domestic interest groups tend to win or lose from adopting an (elusive) cooperative strategy as the unilateral mechanisms of their countries; developing countries tend systematically to lose tax revenue when they enter into the (more cooperative and thus seemingly benign) bilateral treaty regime; finally, the emerging multilateral regime, promoted as an all-benefiting cooperative strategy, also creates potential losers both among and within nations.

Based on this analysis, the paper argues that cooperation serves as a useful rhetorical tool that supports a certain contingent policy choice, but obscures other, potentially important, considerations and alternatives. Identifying the winners and losers of cooperative policies is necessary in order to evaluate such polices. Cooperation cannot be and is not the ultimate goal in international tax policy.

Available at SSRN: http://ssrn.com/abstract=315373 or DOI: 10.2139/ssrn.315373

This Blog/Web Site ("Blog") does not to provide specific legal advice, it is for educational purposes only. This Blog is made available by the international adviser, lawyer or law firm for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice.
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Intereses internacionales existiendo Convenio

El articulo 11 Modelo OCDE, al igual de lo que sucede con los dividendos y cánones, opta por un criterio de tributación compartida. De esta forma, el Estado de la fuente podrá gravar hasta un 10% sobre el importe bruto de los intereses. El Estado de residencia deberá evitar la doble tributación (mediante un criterio de imputación o exención), reconociendo un crédito fiscal por el impuesto ya pagado.

Por consiguiente, los intereses procedentes de un Estado (España) y pagados a un residente de otro Estado (P. ej. Estados Unidos), tributan normalmente en los dos Estados, aunque en el caso del Estado del que procedan (España) tributan de acuerdo con el tipo limitado previsto en el Convenio, que suele ser el 10%.

Por tanto, cuando un residente de un Estado que tenga suscrito Convenio con España perciba intereses de fuente española, los mismos se someterán a tributación en España al tipo limitado previsto en el Convenio.

No obstante, debe señalarse que en este ámbito la normativa interna española contempla determinadas exenciones, más beneficiosas que lo previsto en los Convenios, que son plenamente aplicables (Deuda Pública, intereses comunitarios…).

También hay Convenios suscritos por España en que se reconoce exclusivamente el derecho de gravamen al Estado de residencia. Es el caso de Irlanda, Hungría o Polonia.

En la doctrina internacional ha llamado la atención aquí las operaciones "back to back". Si para llevarla a cabo se interpone una filial cuyo único objeto es esta operación, según el IRS americano no está amparada por el Convenio, al no disponer del dominio o el control del interés que recibe y transmite a su matriz. Pero la misma IRS reconoció en su momento que, si la filial tiene entidad económica suficiente, al estar adecuadamente capitalizada, y obtiene un beneficio por la operación apropiado, se encontrará amparada por el Convenio.

Residencia fiscal y su acreditación

La mayoria de Estados utilizan la residencia como conexión fiscal predilecta a la hora de determinar la sujeción fiscal de una persona. Pero hay excepciones, como Estados Unidos y Filipinas, en que optan por la nacionalidad, e incluso algunas jurisdicciones otorgan cierta importancia complementaria a factores como el domicilio (caso del Reino Unido).

Pero la residencia es una conexión que no se utiliza de forma preponderante en algunos impuestos, como, a nivel europeo, en el IVA (tiene relevancia la condición de "establecido" en el territorio de aplicación del impuesto) o, en el caso de España, el ITP (el factor relevante es la situación del bien).

Acreditación de no residencia

Aunque en teoría debería ser la administración fiscal la que debería probar la residencia, la condición de no residente se puede acreditar, en la mayoría de países, y es el medio reconocido legalmente, mediante la aportación de un certificado de residencia en otro Estado emitido por las autoridades fiscales de dicho Estado. El plazo de validez de dichos certificados se extiende a un año.

Por supuesto, cabe prueba en contra, pero es dificil, ya que se estaría señalando que el otro Estado se ha equivocado y que, lo que aún és más dificil, que debe renunciar a gravar al contribuyente en favor de otro Estado.


Residencia en dos estados por persona física

En ocasiones, al aplicar las normas internas de España y de otro Estado, una persona es residente en ambos Estados. En estos casos, se deberá acudir al Convenio suscrito por aquéllos, si existe. En estos convenios se establecen normas para evitar que, a efectos fiscales, una persona pueda ser considerada residente en los dos Estados.

Por lo general, según dichas normas será residente:

a) Del Estado donde tenga una vivienda permanente. Si tuviera una vivienda permanente en ambos Estados, será residente de aquél con el que tenga relaciones personales y económicas más estrechas.

b) Si así no pudiera determinarse, será residente del Estado donde viva habitualmente.

c) Si vive habitualmente en ambos o en ninguno, será residente del Estado del que sea nacional.

d) Si es nacional de ambos o de ninguno, las autoridades competentes resolverán el caso de común acuerdo.

Residencia en dos estados por persona jurídica

Los conflictos de residencia en el caso de personas jurídicas se resuelven en favor del Estado en el que radique la sede de dirección efectiva. Y cuando esta sede no se pueda concretar, se atribuirá la residencia, de acuerdo con el art. 4.3 Modelo OCDE, al Estado en el que se constituyó la sociedad.

Fundación Privada de Panama

La ley sobre fundaciones privadas es moderna y flexible; sin embargo, fue inspirada en las fundaciones tradicionales europeas. Los documentos de la fundación consisten en el Acta Fundacional y un documento privado denominado Reglamentos.

El Acta Fundacional, protocolizada mediante Escritura Pública, tiene que ser registrada en el Registro Público, pero los Reglamentos no requieren ser registrados y se mantienen como un documento privado. Es en los Reglamentos donde se incluye la relevante información confidencial, pertinente a los beneficiarios y la forma de distribución. Por tanto, ofrece un excelente vehículo para el anonimato.

La Ley también contiene la opción de designar a un protector y/o auditor u otro organismo supervisor, para vigilar las actuaciones del Consejo de Fundación (el ente Administrativo de la Fundación, que puede ser una persona jurídica o no menos de 3 personas naturales, designadas como presidente, secretario y tesorero). También por Ley, los activos transferidos a la fundación se constituyen en un patrimonio separado de los del fundador o fundadores así como de los de cualquier otra(s) persona(s) o entidad(es) que contribuyan a la fundación; y éstos no podrán ser disputados en asuntos hereditarios, definiéndose de esta manera claramente frente al precepto legal sobre herencias obligatorias, existente en ciertas otras jurisdicciones.

Las fundaciones privadas no tienen el propósito de obtener ganancias. Sin embargo, las mismas pueden mantener actividades mercantiles de manera no habitual o ejercer los derechos derivados de títulos que representan el capital de corporaciones mercantiles que forman el patrimonio de la fundación, con la condición de que los resultados económicos o ganancias de tales actividades sean dedicadas exclusivamente para los propósitos de la Fundación. Las fundaciones no se crean como las corporaciones con el fin de mantener un negocio particular sino que se parecen más bien a sociedades holding.

Incluso si la fundación es creada en un país extranjero, tiene que ser protocolizada por un notario público de la República de Panamá antes de ser inscrita en el Registro Público.

Las Fundaciones operan libre de impuestos, cuando sus ingresos se generan fuera de Panamá. Su domicilio puede ser cambiado en cualquier momento desde ó hacia otra jurisdicción.
Las fundaciones Privadas están exentas de todos los impuestos, de retención y de renta sobre los activos, incluyendo acciones emitidas por las compañías cuyos ingresos no son generados en Panamá o no están sujetos a impuestos en Panamá aunque los valores estén depositados en Panamá. Las exenciones de tributación se extienden a transferencia de propiedad inmueble y de efectivo, certificados y valores asignados al cónyuge del fundador o parientes cercanos.
Este es un instrumento muy útil en la planificación de herencias y para la protección de activos.

En general, las Fundaciones de Interés Privado son usadas por quienes desean controlar y mantener la propiedad de empresas pero no desean ser dueños directos debido a las normas sobre Transparencia Fiscal Internacional o a las reglas de Control de Corporación Extranjera (“CFC”) en sus países de residencia. Muchos países de impuestos altos, tales como Inglaterra, Canadá, EE.UU., Australia, Nueva Zelanda, Francia, Italia, España, etc., tienen este tipo de normas, que, entre otras consecuencias, requieren que sus ciudadanos declaren que ellos son accionistas de tales corporaciones extranjeras.

En vez de tener las acciones de la corporación a favor de sus nombres personales o al portador, ellos establecen una Fundación de Interés Privado que mantenga o sea dueña de las acciones de su(s) corporación(es) extranjera(s), evitando así declarar según las normas citadas. Por lo tanto, la ventaja de usar una Fundación como accionista de la sociedad es que ésta no tendrá exactamente dueños finales, sino más bien beneficiarios privados nombrados anónimamente.

Otra ventaja en utilizar la Fundación como accionista es cuando, al abrirse cuentas bancarias corporativas o de inversión, las instituciones financieras, no se desea revelar al beneficiario final de la corporación, aunque no siempre esto es posible.

La Fundación Panameña provee ventajas adicionales además de las de propiedad. Por ejemplo, la Fundación Panameña puede ser útil como vehículos para transferir fondos “offshore” o recibirlos de “offshore”. Algunas personas donan sus fondos a sus Fundaciones Panameñas y después usan la Fundación para dar otorgar becas educacionales o especiales a sus hijos, nietos o cualquiera otro que escojan, evitando las regulaciones fiscales sobre las donaciones.

En general, las Fundaciones de Interés Privado no suelen involucrarse en actividades comerciales. Sin embargo, pueden llevar a cabo actividades bancarias o de inversión, como invertir en depósitos a plazo fijo bancarios, valores, bonos, fondos mutuos, opciones, etc., siempre y cuando los productos de esas actividades de inversión sean para el beneficio del beneficiario de la Fundación.

Uncertain Taxes in China

There is a very interesting article entitled "China's Uncertain Tax Positions" posted by chinalawblog.com:

"Donald Compton of Pricewaterhouse Coopers LLP just had published a nice introduction to some of the tax issues likely to confront multinational companies doing business in China. The article is entitled, "China: Determining Uncertain Tax Positions In China," [free subscription may be required] and its focus is on what such companies need to do to comply with Financial Accounting Standards Board Interpretation No. 48.

The introduction to the article nicely summarizes the article itself:
By now many multinational companies have begun the process of addressing how Financial Accounting Standards Board Interpretation No. 48 ("FIN 48") will apply to their global business. The challenge in understanding the FIN 48 implications for tax planning and local country compliance issues in foreign jurisdictions will be significant. FIN 48 requires companies to ascertain, evaluate, and conclude on discrete tax risks. Companies must not only account for the interest and penalties on these conclusions, but must also adhere to a new disclosure regime.

Companies may not have the wherewithal to fully appreciate the implications of their tax posture due to many factors, including lack of knowledge, time constraints, resource constraints, quality of the past compliance filings, and insufficient mechanisms to gather data. Many issues, including documentation, transfer pricing, arbitrary enforcement and inconsistent interpretation by regulators, are common in many jurisdictions, although each jurisdiction may have its own particular twist.

For companies operating in China, the tax planning environment creates another level of complex Uncertain Tax Positions ("UTPs") analysis. This complexity arises because many companies have negotiated at the provincial and local levels to reduce the national statutory rate, plus there are numerous local incentive regimes. This article provides the author's perspective on UTPs in China and suggests some areas that companies currently or potentially operating in China should consider."

This Blog/Web Site ("Blog") does not to provide specific legal advice, it is for educational purposes only. This Blog is made available by the international adviser, lawyer or law firm for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice.

The Blog does not constitute legal advice and is not a substitute for competent legal advice from a licensed attorney in your state. Any comment posted on the Blog can be read by any Blog visitor; do not post confidential or sensitive information. Any links from another site to the Blog are beyond the control of us.

By using this blog site you understand that there is no attorney client relationship between you and the Blog.

The Blog should not be used as a substitute for competent legal advice from a licensed professional adviser or lawyer in your country.

Our firm and do not convey their approval, support or any relationship to any site or organization. The use of this Blog does not implicitly or explicitly convey any warranties or representations as to the accuracy of the information contained herein.

This Blog has created this privacy statement in order to demonstrate our firm commitment to privacy. The following discloses the information gathering and dissemination practices for this Blog.

This Blog takes your privacy very seriously. Our customers told us they want to see clear, easy-to-read information about our privacy commitments and policies. We have made our privacy policies easier to find and easier to read. And we're listening. We welcome your questions and feedback on our privacy policies, and invite you to contact us with your thoughts.

Customer Privacy Controls and Choices:
• You can review and correct your Personal Information collected by us.
• You can limit certain types of solicitation communications from AT&T, including marketing contacts made via telephone, e-mail and text messaging.
• We will provide you with notice of changes to this policy.

Our privacy commitments are fundamental to the way we do business every day. These apply to everyone who has a relationship with this Blog and visitors.
• We will protect your privacy and keep your personal information safe. We use powerful encryption and other security safeguards to protect customer data, when available.
• We will not sell your personal information to anyone, for any purpose. Period.
• We will fully disclose our privacy policies in plain language, and make our policies easily accessible to you.
• We will notify you of any revisions to our privacy policy, in advance. No surprises.
• You have choices about how this Blog uses your information for marketing purposes. Customers are in control.


This Privacy Policy identifies and describes the way This Blog uses and protects the information we collect about visitors. All use of this Blog is subject to this Privacy Policy.

Use of Location Information
• When your wireless device is on, it sends periodic signals to the nearest cell site. We use that information to provide your wireless services;
• You can use your wireless device to obtain a wide array of services based on the approximate location of the device, referred to as Location Based Services, or LBS. The information you receive in connection with your use of LBS may include advertisements related to your request and your location;

Online Activity Tracking and Advertising
• We collect information about your activity on this Blog for a number of purposes using technologies such as cookies, Web beacons, widgets and server log files.
• We and our advertising partners use that information, as well as other information they have or we may have, to help tailor the ads you see on our sites and to help make decisions about ads you see on other sites.

The Information We Collect, How We Collect It, And How We Use It

We collect different types of personal and other information based on your use of our products and services and our business relationship with you. Some examples include:
• Contact Information that allows us to communicate with you -- including your name, address, telephone number, and e-mail address;
• Equipment, Performance, Site Usage, Viewing and other Technical Information about your use of our network, services, products or Web sites.

We collect information in 2 primary ways:
• You give it to us when you register to provide comments;
• We collect it automatically when you visit our Blog.

We use the information we collect in a variety of ways, including to:
• Provide you with the best visitor experience possible;
• Deliver customized content that may be of interest to you;
• Address network integrity and security issues;
• Investigate, prevent or take action regarding illegal activities, violations of our Terms of Service or Acceptable Use Policies; and
• For local directory and directory assistance purposes.

Aggregate or Anonymous Information:

We may share aggregate or anonymous information in various formats with trusted entities’ only for purposes such as:
• Our knowledge, and offer of information that may be of interest to you;
• Universities, laboratories and other entities that conduct scientific research; and
• Media research companies for general information only.

More information:

http://internationaltaxchina.blogspot.com
http://www.jpa-iac.com/en/
http://www.braxton-co.com/en/
http://www.tax-international.com
http://www.braxton-group.com