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2001 Annual Meeting >> Workshops >>
Workshop on Shifting Boundaries >> Workshop Materials >> Tax
Annual Meeting Workshop on
Shifting Boundaries: Globalization and Its Discontents
Discussion Issues: Concurrent Session on Tax
Robert Joseph Peroni,
The George Washington University Law School
I. Why Think About Covering Globalization Issues in the Federal Income Taxation Course?
A. Cross-Border Transactions Play an Increasingly Important Role in the U.S. and Global Economy
B. International Taxation is One of the Growing Areas of Tax Practice as well as Academic Scholarship
C. Many Students Will Not Take the Separate Course on International Taxation Even if One is Offered at Their Schools—Hence, This Will Be Their Only Possible Exposure in Law School to These Concepts
D. International Tax Issues Raise Interesting and Important Questions of Tax Policy
II. Problems with Attempting to Integrate These Issues in the Federal Income Taxation Course
A. Federal Income Taxation Course is Already Crammed With Too Much Material
B. International Tax Concepts Are Too Difficult to Teach in the Federal Income Taxation Course
C. Students Need a Background in International Law and International Organizations as well as Entity Law to Fully Appreciate the Significance of These Issues and Concepts
D. International Tax Practice is Still Concentrated in Large Cities; Schools Located in Other Areas May Be Less Inclined to Cover These Issues Even in a Separate Course
III. Possible International Tax Issues and Concepts That Might Be Covered in the Federal Income Taxation Course—Obviously a Teacher Would Want to Choose Only a Few of These Topics to Integrate Into the Federal Income Taxation Course
A. Jurisdiction to Tax: Residence vs. Source-Based Taxation
B. Fairness Issues Relating to Taxation of Foreign-Source Income of U.S. Persons
C. Effect of International Tax Rules on Inbound and Outbound Investment Flows, on the Distribution of Income Between Capital and Labor, and on Domestic Employment
D. The Foreign Earned Income Exclusion of Section 911 as an Example of a Tax Expenditure in the International Tax Area
E. Competing Theories of Neutrality (Capital Export Neutrality vs. Capital Import Neutrality vs. National Neutrality)
F. The Basic Concept of the Foreign Tax Credit and its Role in Implementing Capital Export Neutrality
G. The Basic Principle of Deferral of U.S. Income Tax on Income Earned by U.S. Persons Through Foreign Corporations and its Equivalence to Exemption if the Period of Deferral is Long Enough
H. The Role of Tax Treaties and Their Status as Legal Authority in the United States—The Interplay of Federal Statutes and Treaty Provisions
I. Assignment of Income/Section 482 Intercompany Transfer Pricing Issues in the International Context (Including Sales or Licenses of Intangibles)
J. The Judicial Doctrines of Business Purpose/Economic Substance/Sham Transaction/Step Transaction in the Context of an International Transaction
K. Use of International Tax Provisions to Achieve Nontax Penalty Objectives ("Negative" Tax Expenditures)
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