The Effect of the Statist - Political Approach to International Jurisdiction of the Income Tax Regime
32 Pages Posted: 22 Apr 2012
Date Written: 1994
A significant variable of every tax regime, whatever tax is concerned, is its international jurisdiction. Currently, the importance of this jurisdiction is constantly increasing because of the gradual dismantling of the political, social, and economic barriers between nations resulting from international upheavals. This phenomenon is getting stronger in Israel since 1992 as a consequence of implementing an economic and trade policies based on free international trade. Whereas the prevailing approach holds that classical “rational” factors (efficiency based on various concepts of neutrality and equity) influence international jurisdiction, the article focuses on an additional, not "rational" factor, in the ordinary sense of that term, which determines international jurisdiction and is derived from that particular society's political philosophy regarding its statist conception. The article presents this new proposition by analyzing the basic rules governing international jurisdiction of the Israeli income tax regime, and showing the significant influence of the statist perspective on the international tax discourse.
Keywords: Tax, Tax regime, International Jurisdiction, Israel
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