Corporate Tax Law
Objectives
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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;
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Know and being able to address the main tax principles that conduct corporate taxation and the economics and social consequences of that specific taxation;
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Seize tax compliance elements and obligations, relating them to corporate tax planning activities and aggressive tax planning/tax avoidance actions;
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Designing a risk analysis on tax planning and tax compliance;
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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