Why this book?
International juridical double taxation constitutes a significant obstacle for the development of cross-border business activities. Even though this problem has been combated for decades with ever more sophisticated methods, many difficulties are yet to be conquered.
This book deals with problems regarding international double taxation in cross-border partnership structures. The heterogeneity of these business vehicles constitutes a challenging factor for countries' legislation on foreign-entity classification. As these regimes typically disregard the tax treatment of foreign entities for domestic tax purposes, cross-border partnerships often face the risk of being treated as taxable persons in one country but as transparent in another. This is referred to as asymmetrical situations.
As shown in this book, international double taxation arising in asymmetrical situations fits badly into countries’ regimes for double tax relief. As a consequence, there is a considerable risk that international double taxation is not appropriately relieved. The study identifies four fundamental factors which contribute to this and clarifies in detail in what respect these factors clash with the rules adopted in double tax conventions and unilateral rules for double tax relief. This is predominantly done from the perspective of the OECD Model Convention on Income and Capital and the Swedish legislation on double tax relief.
The book presents two main approaches on how to deal with this problem area de lege ferenda. The first alternative focuses on the development of rules for foreign entity classification, while the second looks at the possibility of expanding the current scope of double tax treaties and unilateral rules for double tax relief. The analysis aims at answering how to establish such rules to appropriately prevent double taxation.
This book is part of the IBFD Doctoral Series
Dr Jesper Barenfeld works as Tax Policy Advisor for the Confederation of Swedish Enterprise and deals predominantly with international tax policy issues. He also holds the positions of Affiliated Faculty Member at Jönköping International Business School, Jönköping and Senior Fellow in the Taxation Law and Policy Research Institute at Monash University, Melbourne.