BEPS, ATAP and the New Tax Dialogue: A Transatlantic Competition?

25 Pages Posted: 29 Jun 2018 Last revised: 1 Aug 2018

Reuven S. Avi-Yonah

University of Michigan Law School

Gianluca Mazzoni

University of Michigan at Ann Arbor - Law School - SJD Candidate

Date Written: June 28, 2018

Abstract

The Tax Cuts and Jobs Act (TRA17) signed into law by President Trump on 22 December 2017 contains multiple provisions that incorporate the principles of the OECD/G20 Base Erosion and Profit Shifting (BEPS) into domestic US tax law. Together with the changes in the 2016 US Model Tax Treaty, these provisions mean that the United States is following the European Union in implementing BEPS and particularly its underlying principle, the single tax principle (all income should be subject to tax once at the rate derived from the benefits principle, i.e. active income at a minimum source tax rate and passive at the residence state rate). This represents a triumph for the G20/OECD and is incongruent with the generally held view that the United States will never adopt BEPS.

Keywords: TCJA, BEPS, tax competition

JEL Classification: H26

Suggested Citation

Avi-Yonah, Reuven S. and Mazzoni, Gianluca, BEPS, ATAP and the New Tax Dialogue: A Transatlantic Competition? (June 28, 2018). U of Michigan Public Law Research Paper No. 612. Available at SSRN: https://ssrn.com/abstract=3204242 or http://dx.doi.org/10.2139/ssrn.3204242

Reuven S. Avi-Yonah (Contact Author)

University of Michigan Law School ( email )

625 South State Street
Ann Arbor, MI 48109-1215
United States
734-647-4033 (Phone)

Gianluca Mazzoni

University of Michigan at Ann Arbor - Law School - SJD Candidate ( email )

Ann Arbor, MI
United States

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