Investor-State Arbitration in International Tax Dispute Resolution-- A Cut above Dedicated Tax Dispute Resolution?Virginia Tax Review (2016)
The globalization of commercial and investment operations increasingly affects and contributes to the reshaping of the practices and policies of international taxation. Increasingly, even having knowledge of international tax law is not sufficient to understand the challenges faced by investors making investments across borders. This article focuses on the impact of the international law of foreign investment on tax issues with a view to assessing the interactions between the two regimes and identifying potential signs of convergence. The last decade has witnessed a dramatic surge of investment disputes between foreign investors and host country governments. The new phenomenon of investment arbitration has brought about a number of decisions from different arbitral fora in the sector of tax, contributing to the formation of a jurisprudence that is elucidating the meaning of key provisions and contributing to the emergence of global economic regulation for tax matters. Importantly, fifteen disputes have resulted in significant compensation being paid by host states to foreign investors for breaching investment treaty commitments by imposing tax measures. The details of these fifteen disputes show that there are a number of principles, which have proven decisive to justify the claims of the taxpayers, namely, protection against expropriation, fair and equitable treatment, full protection and security, non-discrimination, the idea of an umbrella clause, and the notion of performance requirements. These six different investment principles indirectly constitute part of the international regime of tax matters.
- international taxation,
- investment tribunal,
- investment treaties,
Publication DateWinter January 1, 2016
Citation InformationJulien Chaisse. "Investor-State Arbitration in International Tax Dispute Resolution-- A Cut above Dedicated Tax Dispute Resolution?" Virginia Tax Review Vol. 41 Iss. 2 (2016) p. 149 - 222
Available at: http://works.bepress.com/julien_chaisse/75/