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Tuesday, April 12, 2022

Rosenzweig: Worldwide Tax Scholarship Throughout An Existential Disaster

Adam Rosenzweig (Washington Univ.), Carving a Path for Authorized Scholarship Throughout an Existential Disaster (JOTWELL) (reviewing Wei Cui (British Columbia; Google Scholar), New Puzzles in Worldwide Tax Agreements, 73 Tax L. Rev. ___ (2022)):

JOTWELL Tax (2021)The G-7 and G-20 not too long ago introduced a “breakthrough” settlement by over 130 international locations to undertake and implement a “international minimal tax” proposal. The settlement is reportedly anticipated to lift over $150 billion in new income by closing a number of the most infamous tax loopholes on the planet; finally the deal may reshape international commerce and shore-up beleaguered nationwide funds following the worldwide pandemic. Officers concerned within the deal have been quoted as making sweeping statements that the deal was historic, and that it could reshape the worldwide financial system, make worldwide taxation fairer, eradicate incentives for companies to keep away from tax, and function a transparent sign for international justice.

A constant theme could be seen to emerge from this course of — that the trigger for a lot of the issues plaguing the worldwide tax regime finally stem from a scarcity of political will, with international company pursuits exploiting the vacuum of an uncoordinated tax system. Regardless whether it is true, such a theme carries with it two collateral implications: (1) there is no such thing as a disagreement as to the substance of the deal from a authorized or coverage standpoint and (2) any questioning of (1) should be motivated by the identical political forces stopping reform prior to now. Wei Cui’s article New Puzzles in Worldwide Tax Agreements analyzes and criticizes this theme.

This theme creates a type of existential second for worldwide tax regulation students – exactly as a result of a once-in-a-generation international overhaul of the regime seems inside attain. But, as mental debates transition into real-world policy-making, even facially impartial contributions threat getting misplaced within the noise of the second, or perhaps even worse caught in a type of mental purgatory.

That is the place Cui’s article intervenes, and does so with refreshing readability and candor.

Cui brings tutorial rigor and precision to determine what he refers to as mental “puzzles” within the debate. His factors may very well be regarded as a tax regulation type of observing that the emperor has no new garments. …

The last word lodestar of the scholarly enterprise is the collective improvement of data generated over time and incorporating myriad views into maybe sooner or later a coherent complete. Correspondingly, any stress (implicit or in any other case) in direction of conformity, irrespective of how effectively supposed, finally undermines that scholarly endeavor. In consequence, at this second in worldwide tax regulation maybe Cui’s article is exactly what the sphere wants extra of. Even when Cui’s article had been to perform nothing else, difficult readers to confront most of the unstated and uncomfortable tensions throughout the area might effectively serve the very best and greatest use for tutorial scholarship throughout an existential second.

Scholarship, Tax, Tax Scholarship | Permalink


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