Tax Law and Investment Arbitration: Conflict between domestic policies and international obligation of the State on taxation

This book provides a comprehensive analysis of tax disputes from the viewpoint of protecting the legitimate fiscal conduct of host States in investment arbitration, combining comparative tax law and rich tax jurisprudence. It aims to rectify the lacunae in scholarship on tax disputes that have been overwhelmingly investor-centered.

Format: Hardback
Length: 256 pages
Publication date: 31 December 2020
Publisher: Taylor & Francis Ltd

Given the distinctive nature of taxation, encompassing the discretionary authority of tax administration, the intricate complexity of tax issues, and the nascent development of tax systems in many developing countries, this comprehensive analysis of tax disputes from the perspective of safeguarding the legitimate fiscal conduct of the host State in investment arbitration holds immense theoretical and practical significance. The book endeavors to rectify and fulfill the existing gaps in scholarship on tax disputes, which have predominantly been investor-centric. The most notable aspect of the book lies in its approach to the arbitration of taxation, encompassing a comprehensive and coherent discussion of tax stabilization clauses in investment contracts, which are crucial to the tax sovereignty of the State. Additionally, the book integrates the analyses of taxation problems from the comparative perspectives of the most relevant legal systems, as well as the rich tax jurisprudence of the World Trade Organization (WTO) and the European Court of Human Rights (ECtHR).

Introduction:
Taxation is a complex and multifaceted phenomenon that plays a crucial role in the functioning of governments and societies. It serves as a vital source of revenue for governments, enabling them to provide essential services and infrastructure to their citizens. However, taxation also raises numerous legal and ethical issues, particularly in the context of international investment arbitration. This book aims to provide a comprehensive analysis of tax disputes from the perspective of protecting the legitimate fiscal conduct of host States in investment arbitration.

The Unique Character of Taxation:
Taxation possesses a unique character that sets it apart from other areas of law. Firstly, taxation involves the exercise of discretionary power by tax administrations. Tax authorities have the power to determine the tax rates, tax bases, and tax exemptions applicable to individuals and businesses. This discretionary power gives rise to potential disputes and challenges, as different parties may have different interpretations of tax laws and regulations.

Secondly, tax issues are often complex and multifaceted. Tax laws and regulations can be intricate, and the interpretation and application of these laws can be subjective and contentious. Tax disputes can arise from a wide range of factors, including tax audits, tax assessments, tax treaties, and tax policy changes. These disputes can involve issues such as the taxability of transactions, the calculation of tax liability, the application of tax treaties, and the interpretation of tax laws and regulations.

Thirdly, the development of tax systems in many developing countries is still in its early stages. These countries may have limited tax infrastructure, tax administration capabilities, and tax laws and regulations that are not well-developed or fully implemented. This can lead to tax disputes and challenges, as investors may encounter difficulties in understanding and complying.

Protecting the Legitimate Fiscal Conduct of Host States in Investment Arbitration:
Given the unique character of taxation, it is essential to protect the legitimate fiscal conduct of host States in investment arbitration. This protection is crucial to maintaining the stability and predictability of the investment climate, which is essential for promoting economic growth and development. The book aims to provide a comprehensive analysis of tax disputes from the perspective of protecting the legitimate fiscal conduct of host States in investment arbitration.

The Need for a Comprehensive Analysis:
The existing scholarship on tax disputes has been overwhelmingly investor-centered. This scholarship has focused on the rights and obligations of investors and the protection of their investments from taxation. While this approach is important, it fails to recognize the broader context of tax disputes and the importance of protecting the legitimate fiscal conduct of host States.

The book tries to rectify and fulfill the lacunae of scholarship on tax disputes that has been hitherto overwhelmingly investor-centered. The most distinguished characteristic of the book lies in the manner in which it deals with the arbitration of taxation in a comprehensive and coherent manner, including the discussion of tax stabilization clause in investment contracts that is paramount to the tax sovereignty of State. It also combines the analyses of the taxation problems from the perspective of comparative tax law of the most relevant legal systems as well as rich tax jurisprudence of WTO and European Court of Human Rights (ECtHR).

Conclusion:
In conclusion, taxation is a complex and multifaceted phenomenon that requires a comprehensive analysis from the perspective of protecting the legitimate fiscal conduct of host States in investment arbitration. This book provides a valuable contribution to the existing scholarship on tax disputes, offering a comprehensive and coherent approach to the arbitration of taxation. By addressing the unique character of taxation, the complexity of tax issues, and the nascent development of tax systems in many developing countries, the book aims to rectify and fulfill the existing gaps in scholarship on tax disputes. The book combines the analyses of taxation problems from the perspectives of comparative tax law, rich tax jurisprudence, and the WTO and ECtHR, providing a comprehensive and interdisciplinary approach to the study of tax disputes.

Dimension: 234 x 156 (mm)
ISBN-13: 9781138686229