Juridical Tribune Volume 6, Issue 2, December 2016
Looking at the literature, we can see that different views on the provisions of
double taxation conventions can lead to conflicts
. If one state considers an entity
as having a permanent residence, that entity will be subject to the income attributed
to this facility with regard to tax regulations. As a result, the other state will
interpret the clause of permanent residence in a different way, and will not consider
the fact that the requirements for the establishment of permanent residence are met,
having the right of veto with regard to granting an exemption from tax income, in
this case the income being subject to double taxation.
Fiscal sovereignty entails that each state is free to determine the tax system it
enforces, define the taxes that make up that system, specify the subjects of taxation,
set tax amounts, establish payment terms, grant tax incentives, set tax penalties,
establish remedies and tax dispute settlement procedures etc.
The international context and globalisation, the increase in international
mobility, the free movement of goods, services, capital and people have quickly led
to international investment, the expansion and relocation of economic activities and
the development of multinational entities.
In this context, the tax system and fiscal policies of a state must be adapted
to both the national and the international environment to ensure competition in
taxes. Thus, the increasing mobility of capital and labour can positively influenced,
each taxpayer being interested in owning the most profitable opportunities to get
the highest return on income before or after taxes
, and states can ensure their
economic and social development based on foreign investment.
There were immediate tax jurisdiction controversies related to revenues
obtained and capital held by non-residents of a country, the most common conflict
in international tax law being international double taxation
Double taxation is a complex phenomenon that is based on the action of two
or more fiscal sovereignties or competition arising between two or more fiscal
and it is a topic often discussed in the literature because of the
negative effects that it generates. International double taxation poses a number of
problems due to the fact that its existence prevents inter-state transactions and
Reimer, E., Rust , A., Klaus Vogel on Double Taxation Conventions – Fourth Edition, Wolters
Kluwer Law & Business, 2015, Vol. II, pp. 171.
Ioan Condor, Evitarea dublei impuneri internaţionale, Regia Autonomă „M onitorul Oficial”
Publisher, Bucharest, 1999, p.31.
Dănuț Chilarez, George Sebastian Ene, Harm onisation and fiscal competition in the European
Union, „Management Strategies Journal”, 2014, Vol. 23, No. 1, pp . 83-93.
Éva Erdős, Conflicts in the international tax law and answers of the European tax law, „Curentul
Juridic”, Târgu M ureș, 2011, Vol.47, pp . 159-174.
Ioan Rus, Eleonora-Laura Avram, Paula Monica Bocicor, Mirela Ruxandra Moldovan, Evitarea
dublei impuneri între România și s tatele: Ungaria și Bulgaria, „Academica Science Journal Studia
Series”, Tîrgu Mureș, 2013, No.(3)-2, p .50.
Florin D umiter, Anca Laura Opreț, Florin Marius Turcaș, Theoretical underpinnings vis -à- vis of
double taxation problem, „Journal of Legal Studies”, 2014, Vol 15, No. 28, pp . 83-99.