ADIT Diploma

MODULE 1 – PRINCIPLES OF INTERNATIONAL TAXATION

I Basic principles of international tax law 20%

•  Jurisdiction to tax, including limits to tax jurisdiction arising from public international law, and cross border enforcement of taxes
•  Taxes and tax systems
•  State practice in exercising tax jurisdiction
•  Causes of international double taxation
•  Methods of relief from international double taxation
•  Private international law and tax
•  The history of international tax law
•  European Union law and international tax
•  Tax and international human rights instruments
•  State responsibility in international tax – the development of the concept of harmful tax competition

II Double taxation conventions (DTCs), focusing on the current version of the OECD Model Tax Convention (MTC) 30%
Candidates are expected to: understand the operation of the provisions of the OECD MTC; show awareness of the major points in the Commentary to the relevant Article of the OECD MTC; and be aware of key reports of the OECD Committee on Fiscal Affairs and major international cases on the topic.

•  Types of DTCs (limited, multilateral etc.) and negotiation of DTCs
•  DTCs and domestic law
•  Format and structure of a DTC
•  Approach to the application of a DTC: applying a DTC to a concrete scenario
•  Interpretation of DTCs
•  Provisions relating to the scope of a DTC: Articles. 1, 2, 29, 30, 31 and 32
•  Key definitional provisions
•  DTC provisions relating to businesses
•  DTC provisions relating to individuals
•  DTC provisions relating to investment income and gains
•  Relevance of the “other income” Article – Article 21, OECD MTC
•  Limitation of benefit provisions
•  Methods of elimination of double taxation – Articles 23A and 23B, OECD MTC
•  The impact of the non-discrimination article – Article 24, OECD MTC 2
•  The resolution of disputes under DTCs
•  The application of DTCs to electronic commerce
•  The digital economy
•  The work of the Platform for Collaboration on Tax
•  The work of the UN Committee of Experts on International Cooperation in Tax Matters

III Transfer pricing and thin capitalization rules 20%

•  Various approaches to the determination of profits of branches and associated enterprises
•  State practice with respect to transfer pricing
•  Transfer pricing and DTCs – Article 9, OECD MTC
•  Advanced pricing agreements
•  The OECD Transfer Pricing Guidelines 2017
•  Transfer pricing and BEPS
•  Transfer pricing and developing countries
•  State practice with respect to thin capitalization
•  Thin capitalization legislation and DTCs

IV International tax avoidance 25%

•  Tax havens
•  Domestic law approaches to international tax avoidance
•  Money-laundering legislation and international tax avoidance
•  Co-operation between revenue authorities
•  Conventions for administrative assistance in tax administration
•  Base Erosion and Profit Shifting (BEPS)

V Miscellaneous topics 5%

•  Indirect taxes and international taxation
•  Cross-border mergers
•  Estate and gift taxation and international issues
•  OECD Secretariat analysis of tax treaties and the impact of the COVID-19 crisis