The Resource The principle of terrritoriality and cross-border loss compensation

The principle of terrritoriality and cross-border loss compensation

Label
The principle of terrritoriality and cross-border loss compensation
Title
The principle of terrritoriality and cross-border loss compensation
Creator
Subject
Language
eng
Summary
EU Member States are free to define their income tax base. They may in principle disregard foreign-sourced income, resulting in the impossibility of cross-border loss compensation. The European Court of Justice (ECJ) has accepted the principle of territoriality as a criterion for the division of the authority to tax, but its understanding of the concept of the concept of territoriality seems to differ from the current understanding of that concept in international law. Moreover, the ECJ does not accept all consequences of the application of territoriality, in particular, regarding the taxation of individuals (e.g. the Renneberg case). For individuals, the non-discrimination principle seems to override the recognition of sovereign assumption of fiscal jurisdiction. This raises questions such as how to apply the Schumacker criterion in loss situations and whether the ECJ's reasoning in De Groot extends to deduction of losses
Citation source
In: Intertax. - Alphen aan den Rijn. - Vol. 39 (2011),
http://library.link/vocab/creatorName
Marres, O.C.R
Geographic coverage
  • European Union
  • Europe
Language note
English
http://library.link/vocab/subjectName
  • territoriality principle
  • cross-border loss relief
  • international tax law
  • ECJ case law
  • tax base
  • avoidance of double taxation
Label
The principle of terrritoriality and cross-border loss compensation
Instantiates
Publication
Label
The principle of terrritoriality and cross-border loss compensation
Publication

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