International Tax Law

The area of Tax Law at the International Tax Institute is a subdivision of Legal Studies. Research in this area concentrates on German, International and European Company Tax Law. There are close links to other areas of Legal Studies, for example Company Law (Rights of Partnerships and Corporations), Business Law, Company Conversion Rights, European Law and Public Company Law. The following points are especially relevant:

German Company Law

Taxation of corporations

• Is a separate corporate tax law justified?
• How can company law be structured to be fair and neutral?
• How can double taxation be avoided for company owners (allowance, exemption, half-income method)?
• How can hidden dividends be regarded dogmatically?

Taxation of partnerships

• Should taxation of partnerships be structured similarly to the model applicable to sole-traders or to corporations?
• What should the relationship be between the consolidated balance sheet and the individual financial situation of the owners?
• How should company owners’ contributions to their company be taxed?
• To what extent is it possible for a partnership to be taxed as a corporation?

Taxation in cases of corporate alliances

• Which criteria must a modern system of corporate taxation fulfil?
• How can a loss account be calculated for company alliances?
• Can and should taxation on corporations be carried out across borders?

Conversions of legal status

• What should a modern tax law on conversion rights contain?
• How should a conversion of legal status across borders be performed?
• How can tax neutrality of conversions be maintained with regards to losses and land purchase tax?
• Which anti-abuse regulations are necessary and how could they be structured?

Mergers and Acquisitions

• Which criteria must a concept of neutral taxation for mergers and acquisitions fulfil?
• Can optimal structures be developed to serve as model concepts?
• To what extent are mergers and acquisitions either hindered or promoted by tax regulations?

Financing

• Which tax parameters must be fulfilled in order to enable a neutral financing structure with regard to the financing decision?
• To what extent can and should external company financing be restricted?
• Which anti-abuse regulations are necessary and what should they contain?
• Are tax rules intended to regulate leasing and other forms of finance necessary and what should be their content?

International Company Tax Law

Business premises

• Is the concept of “business premises” suitable for modern forms of company organisation or should it be widened or restricted?
• How can profit allocation be performed with regard to business premises?
• How can double taxation be avoided, especially where income flows from third countries are involved?
• What is the significance of the concept of “permanent representative”?

Partnerships

• How can both zero taxation and double taxation be avoided when fees are paid to company owners?
• How can an option be provided to a partnership to be taxed as a corporation when engaging in international trade?
• What kind of tax structure is necessary to ensure a tax-neutral partnership?

Corporations

• What type of regulation is necessary to enable the establishment of tax-neutral cross-border operations?
• How should European publicly listed companies be taxed?
• How might a consolidated tax system be designed for cross-border operations and what impact would this have on countries’ tax revenues?

Transfer Pricing

• Are the current methods for calculating transfer prices sufficient against the backdrop of globalised markets?
• How can profit allocation be performed optimally and what impact would this have on the behaviour of companies and States?
• What changes are necessary to the way international audits, information exchange and communication processes are performed due to globalisation?

Cross-border Mergers & Acquisitions

• Which criteria must modern tax laws fulfil in relation to mergers and acquisitions against the backdrop of globalisation?
• To what extent are anti-abuse regulations necessary and what should they contain?

Cross-border financing

• Should cross-border financing be restricted, especially with regard to external capital?
• What impact would the restriction or non-restriction of external financing have on the financial structure of companies and States’ tax revenues?
• Which regulations are necessary, possible or viable as regards the financing of companies in low-tax countries?

Cross-border employment

• Are regulations to promote or limit cross-border employment necessary?
• What impact would these regulations have on employees’ mobility and companies’ flexibility in a globalised economy?

Double-taxation agreements

• How can double-taxation agreements be further developed in the light of globalisation and the European Union?
• Is the prominence of the tax-exemption method still relevant?
• Can the problems of subject-to.tax, switch-over or general/ specific abuse clauses be solved in the light of globalisation? What would these clauses contain?
• How might a comprehensive “tax agreement” be structured?

European Tax Law

Impact of the “basic freedoms” on German tax law

• How should a tax law which conforms to EU standards be structured?
• Should tax regulations that limit the “basic freedoms”, be added to the EU treaties?
• Does the existence of the freedom of movement of capital, the ban on discrimination and most-favoured nation agreements mean that the EU regulations should be extended to third countries?

Tax competition

• What impact does tax competition have between EU states?
• Should tax competition be regulated and is this possible according to the EU treaties?
• How can a system of taxation on dividends, interest and licences be structured?

European Company Tax Law

• How might a company tax law conforming to EU standards be structured?
• Which tax regulations are necessary for a European public stock company (at foundation and during operations)?
• How can company freedoms be guaranteed? What impact would this have on States’ tax revenues?
• Is a European corporation tax law necessary? What type of company tax law could this be?

Foreign Tax Law

Tax Law in the European countrys

Tax Law in the USA

All of our projects follow an interdisciplinary and integrated approach, and profit from the expertise in the other areas of the International Tax Institute. Research therefore also covers aspects of tax planning.