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What is the role of civil and commercial law in international taxation?

Keena Wardall

Civil and commercial law play a significant role in international taxation, as they provide a framework of rules and regulations that govern how businesses and individuals interact with each other in international transactions. Additionally, these laws empower governments to collect taxes on income earned from sources outside their jurisdiction, which can have a significant impact on how businesses operate in the global marketplace.

One of the most important aspects of civil and commercial law in international taxation is the concept of jurisdiction. In order for a government to claim the right to tax income earned by an individual or business, it must have jurisdiction over that income. This is often determined by factors such as the location of the business or individual, the type of income being earned, and the agreements in place between different governments.

Another key role of civil and commercial law in international taxation is the establishment of rules and guidelines for cross-border transactions. These rules are designed to ensure that businesses and individuals comply with tax laws and regulations in both their home countries and the countries where they conduct business. For example, a company that operates in multiple countries may be subject to different tax laws and regulations in each country, and must navigate these complex rules in order to remain compliant.

In addition to these practical considerations, civil and commercial law also serve a more fundamental role in international taxation by establishing principles of fairness and equity. These principles help to ensure that businesses and individuals are not subject to discriminatory treatment when it comes to tax matters, and that tax laws are applied in an objective and transparent manner. This is especially important in the context of international taxation, where the potential for abuse and exploitation is high, and where different countries may have very different tax systems.

Overall, the role of civil and commercial law in international taxation is complex and multifaceted. It encompasses a wide range of legal frameworks and principles, and involves the interaction of a variety of different actors, including governments, businesses, and individuals. However, despite these complexities, the fundamental goal of civil and commercial law in international taxation remains the same: to ensure that tax laws are applied fairly and equitably, and to promote the efficient and effective functioning of the global economy.