Corporate Tax Law

Objectives

  • Identify corporate taxation different levels, being able to specify the contemporary problems in each tax level: national vs international; individual corporation vs corporate groups; income vs activity;

  • Know and being able to address the main tax principles that conduct corporate taxation and the economics and social consequences of that specific taxation;

  • Seize tax compliance elements and obligations, relating them to corporate tax planning activities and aggressive tax planning/tax avoidance actions;

  • Designing a risk analysis on tax planning and tax compliance;

  • Consider the EU influence on how Corporate Taxation and Corporate Decisions are made

General characterization

Code

37032

Credits

6

Responsible teacher

Marta Elisa de Sousa Carmo

Hours

Weekly - 3

Total - 36

Teaching language

English.

However, with the possibility of selection, by the majority of students, of the Portuguese language, assuming also the inexistence of students who do not master the Portuguese language.

Prerequisites

Not Applicable

Bibliography

PART I

 

AUERBACH,  Alan J.. Who bears the corporate  tax? A review of what we know. Working  Paper 11686

Disponível em  http://www.nber.org/papers/w11686

 

BAIARDI,  Donatella;  PROFETA,  Paola; PUGLISI,  Riccardo; SCABROSETTI,  Simona. Tax Policy and Economic  Growth:  Does  It  Really  Matter?  CESifo  Working  Paper,  No.  6343,  Center  for  Economic Studies and Ifo Institute (CESifo), Munich, 2017. Disponível em  http://hdl.handle.net/10419/155585

 

BIRD, Richard; MINTZ, Jack. International  Tax Sharing: Can the Dream become Reality? Revised; July

24, 2019, Disponível em  https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3426848

 

BOGENSCHNEIDER, Bret N. The European  Commission¿s  Idea of Small Business  Tax Neutrality.  EC TAX REVIEW 2016/4

 

BRYS,   Bert;  PERRET,   Sarah;   THOMAS,   Alastair;   O¿REILLY,   Pierce.   Tax  Design   for  Inclusive

Economic Growth. OECDE Taxation Working Papers, n.º 26, 2016

 

FUEST,  Clemens;  PEICHL,  Andreas;  SIEGLOCH,   Sebastian.   Do  Higher  Corporate  Taxes  Reduce Wages?   Micro   Evidence   from   Germany.   IFO   Working   Papers   n.º   241/2017   September    2017 https://www.ifo.de/DocDL/wp-2017-241-fuest-peichl-siegloch-corporate-taxes.pdf

 

IRELAND  DEPARTMENT  OF FINANCE.  Literature  Review Of The Economic  Effects Of Corporation Tax. Part of the Economic Impact Assessment of Ireland¿s Corporation Tax Policy. October 2014 http://www.budget.gov.ie/Budgets/2015/Documents/Literature_Review_Economic_Effects_Corporation.p df

 

LAMBERTS,  Paul B.W.L. Fair Taxation: Truth is in the Eye of the Beholder.  INTERTAX,  Volume 45, Issue 1 (2017)

 

MCKENZIE,  Kenneth J.; FEREDE, Ergete. Who pays the corporate tax?: insights from the literature and evidence  for  canadian  provinces.  The  School  of  Public  Policy  ¿ SPP  Research  Papers,  University  of Calgary,         volume         10,         issue         4,         April         2017          https://www.policyschool.ca/wp- content/uploads/2017/04/Corporate-Tax-McKenzie-Ferede1.pdf

 

 

PART II

 

HARRIS, Peter. Corporate Tax Law. Structure, Policy and Practice. Cambridge University Press, 2013

 

HEBER, CAROLINE, The Interest Limitation Rule in the Light of European Constitutional Law, EC Tax Review

Volume 31, Issue 2 (2022) pp. 72 ¿ 84

 

ISMER, ROLAND, Editorial: A Zebra or a Donkey? the European Commission¿s Proposal for a Debt-Equity Bias Reduction Allowance (DEBRA), EC Tax Review, Volume 31, Issue 4 (2022) pp. 164 ¿ 170

 

SARAIVA, JOSÉ MIGUEL, The DEBRA Directive: The Beginning Of The End For The Bias, NOVA TAX PRACTICIONERS COLUMN, available at: https://taxlab.novalaw.unl.pt/?page_id=3170

 

SCHREIBER,   Ulrich.  International   Company  Taxation.  An  introduction   to  the  legal  and  economic principles. Springer, 2013

 

TING,  Antony.  The Taxation  of Corporate  Groups  under  Consolidation.  An international  comparison. Cambridge University Press, 2013

 

PART III

 

BALAKRISHNAN,  Karthik;  BLOUIN,  Jennifer;  GUAY,  Wayne.  Tax  Aggressiveness  and  Corporate

Transparency.  https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1792783

 

BANCEL,     Franck;     MITTOO,     Usha    R..The    Determinants of    Capital    Structure     Choice:     A Survey of European Firms  https://papers.ssrn.com/sol3/papers.cfm?abstract_id=299172

 

BRAUNER, YARIV, Editorial: Agreement? What Agreement? The 8 October 2021, OECD Statement in Perspective, Intertax, Volume 50, Issue 1 (2022) pp. 2 ¿ 6

 

CERIONI,  Luca.  The  Quest  for a New  Corporate  Taxation  Model  and  for an Effective  Fight  against

International Tax Avoidance within the EU. INTERTAX, Volume 44, Issue 6 & 7, 2016

 

DOURADO, ANA PAULA,

Editorial: Pillar-Two Under Analysis , Intertax, Volume 50, Issue 10 (2022) pp. 670 ¿ 672

Editorial: The EC Proposal of Directive on a Minimum Level of Taxation in Light of Pillar Two: Some Preliminary Comments, Intertax, Volume 50, Issue 3 (2022) pp. 200 ¿ 204

IT CONTINUOUS...

SEE THE SYLLABUS ON THE MOODLE. DUE TO LENGTH THE COMPLETE BIBLIOGRAPHY IS NOT HERE.

Teaching method

Socratic model, with stimulus in the preparation of the classes, through permanent face-to-face discussion, enabling and developing critical and integrated thinking.

Use of concept maps and promotion of critical analysis of international documents.

Evaluation method

Option 1: Written exam
Option 2: Written exam (60%) & Specialized Class Participation during the Semester (40%)
CLASS PARTICIPATION REQUIREMENTS AND ELEMENTS OF EVALUATION

EVALUATION ELEMENT CONTENTS  FORM
PREVIOUS PREPARATION OF CLASSES -Preliminary readings: legislation vs one book only vs multiple
books vs scientific papers;
-Prior identification of core materials and core concepts required
for critical reflection;
-Reflective and critical analysis with systematized grid of doubt,
reflecting the need to create a subject learning path.
- Passivity
vs
Proactivity
- Frequency
PREPARATION OF
SPECIFIC CONTENTS
PROPOSED DIRECTLY BY
THE TEACHER IN
ADVANCE
- Purified and systematized reading of proposed materials 
- Reflective and critical analysis, building systematized grid of the
main themes involved
- Identification of key questions, reflecting cross-examination with
previous and subsequent subjects to be explored in the program,
revealing the need to create a learning path in the subject
- Compliance
with
proposed
deadline
- Passivity
vs
Proactivity
- Frequency
RESPONSE
TO
CLASSROOM
QUESTIONS
- Identification of relevant topics
- Use of appropriate concepts
- Integration of the materials concerned
- Invocation of legal and jurisprudential basis, if any
- Associated issues
- Creativity and innovation in addressing the issue
- Passivity
vs
Proactivity
- Frequency
- Relevance
QUESTIONS AND
DOUBTS FROM
PREVIOUS STUDY
AND ISSUES REFLECTED
PREVIOUSLY
- Adequacy
- Ability to express the discovery made and its framing in the
corresponding problem
- Density
- Maturity
- Frequency
- Relevance
- On
their own
initiative
- On the
teacher's
impulse
- As a result
of
colleague's
doubt
QUESTIONS
ASKED IN
CLASS
- Adequacy
- Ability to express the discovery made and its framing in the
corresponding problem
- Density
- Maturity
 Frequency
- Relevance
- On
their own
initiative
- On the
teacher's
impulse
- As a result
of
colleague's
doubt

 

Subject matter

Part I ¿ How the ¿death and taxes paradigm¿ relate to corporate activity

1.     Why tax corporations: from ability-to-pay to fair taxation canon

2.     Impact of taxes on corporations¿ activities and management decisions

2.1.   Prices and salaries; inequality and redistribution; savings and consumption; investment; national economic growth and employment

2.2.   Tax Neutrality vs Tax (des)incentives: a difficult equilibrium

 

Part II ¿ How Corporate Tax is designed: A macro approach

1.     1st Level: Taxing the corporate income

a.     Single Corporation

i.    Income when generated

1.     Elements  to  consider:  tax  base,  tax  rates  and  global corporate tax system

2.     What to tax: defining Taxable Profit as the corporate tax base

a. Types of income and expenses and some examples of tax corrections

i.    Capital gains and losses

ii.    Depreciation and Amortization

iii.    Provisions

b.     Tax treatment of losses

c.      Time and taxes: tax period  and differed income and expenses 

3.     Corporate financing methods and taxation, including the Debt Equity Bias Reduction Allowance (DEBRA) initiative

a.     Self-financing methods

b.     External financing methods

ii.    Income when distributed

1.     Dividends and hidden profits distributions

2. Dividend Relief: Tackling Double Economic Taxation

 

b.     Corporate Group under consolidation

i.    Separate Entity Doctrine plus Enterprise Doctrine

ii.    Consolidation Regimes

1.     What means and why it is admitted

2.     Definition of Group

3.     Treatment of Losses

4.     Treatment of Assets

5.     Transfer Pricing

6.     Debt Financing

2.     2nd Level: Taxing the business operations: VAT

a.      Corporate as a VAT payer

b.     Corporate as a VAT debt collector

 

Part  III  ¿  How  Corporate  Tax  Compliance  must  be  taken  into  account:  Reconciling

taxes with business management freedom

1.     What is Corporate Tax Compliance, why it matters and what it demands from Corporation resources

2.     Becoming International also means Tax Planning Opportunities

a.     Main International Corporate Structures and Tax Implications

b.     Risk analysis

i.    Ethical, Philosophical and Moral Quests: From Social Corporate Responsibility to Fair Share

ii.    The Global Strategy for Tackling Aggressive Tax Planningand its consequences for corporations, including the OECD Inclusive Framework on BEPS and the Agreement for Global Minimum Tax

 

Part  IV  ¿  How  EU  influence  how  Corporate  Taxation  and  Corporate  Decisions  are made

1.     Going on¿a Soft Law approach: EU Code of Conduct on Business Taxation

2.     Going on¿ the Hard way: the examples of ATAD and State Aid Cases

 

Programs

Programs where the course is taught: