Worried for the exam? No time to prepare well structured notes to bring with you? No problem. These schemes are intended to provide a step-by-step approach to each and every topic covered. They will enable you to save time and answer comprehensively to every exam question. They combine: (i) lecture...
In general, the sources of tax law are found in:
1) Hard law -> refers generally to legal obligations that are binding on the parties involved and which
can be legally enforced before a court
2) Case law -> judicial decisions (precedents)
3) Soft law -> term used to denote agreements, principles and declarations, doctrines that are not
legally binding
Mechanisms to exchange information:
1) Upon request (EOIR)
2) Spontaneous (SEOI)
3) Automatic exchange (AEOI)
- The AEOI is understood to involve the systematic and periodic transmission of “bulk” taxpayer
information by the source country to the residence country concerning various categories of
income (e.g. dividends, interest, royalties, salaries, pensions, etc.).
Historical background1:
Ever since the financial crisis (2008) and the (tax) scandals that emerged thereafter 2 combined with the
rise of information technology (and digitalization of the economy), domestic tax systems have shown
their limits.
o In particular, these developments highlighted the inability of states to tackle tax issues having
an international character.
Accordingly, in April 2009 at the London Summit, the OECD committed to bring greater
openness and transparency to cross-border financial services by reshaping and
modernizing the international tax architecture. This was important in order to:
i. Fight tax evasion;
ii. End bank secrecy and tax havens;
iii. Address tax avoidance and aggressive tax planning by MNCs
Timeline of relevant developments:
1
In the past years there has been an important shift in the field of tax law from:
1) Bilateral to multilateral;
2) Upon request to automatic exchange of information (EoI)
3) Domestic law to international guidelines
2
LGT Liechtenstein; UBS - Bradley Birkenfeld, Panama papers
, o FATCA -> The Foreign Account Tax Compliance Act (FATCA), which was passed as part of the HIRE
Act, generally requires that foreign financial Institutions and certain other non-financial foreign
entities report on the foreign assets held by their U.S. account holders or be subject to withholding
on withholdable payments. The HIRE Act also contained legislation requiring U.S. persons to
report, depending on the value, their foreign financial accounts and foreign assets.
- Information
o Financial information
o US tax residency/citizenship
- Bilaterality – Unilaterality
o IGA 1 and IGA 2
o US broad ≠ Abroad US
- 30% WHT (source)
o Register Collaborator FFI
o Recalcitrant Accountholder
- Financial Institutions:
o Collaborate
o Withholding agents (US Code)
- Previous accounts +50.000$ (insurances
+250.000)
- Only FATCA purposes
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller matteobarchi97. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.97. You're not tied to anything after your purchase.
