Contextualizing Tax and Society: Building a Sustainable and Fair Tax System

Question 1

Comparative tax law consists of studying the differences between these 3

Answer 1

1. Detailed rules for specific tax issues
2. Conceptual structures (income, corporation, capital gain)
3. Institutions (courts, tax advisers, tax administration)

Question 2

7 reasons to study comparative tax law

Answer 2

1. Understanding law of foreign countries
2. Understanding why tax laws are written the way they are
3. Research for other study areas (economics, politics)
4. Debunk statements on tax policy during political debates
5. Critical perspective and what taxes can and cannot do to improve society
6. Producing international guidelines/cooperate projects
7. Finding solutions to tax problems in other countries and transplanting them to your own

Question 3

What is the definition of tax?

Answer 3

Compulsory contribution levied by a government for which no specific service with a corresponding value is derived

Question 4

How is a tax different from a fee?

Answer 4

With fees, you get something specific in return for your payment corresponding to the value of the fee -> garbage-collecting fee

Question 5

How is taxation relevant for investor-state stabilization agreement?

Answer 5

When a company invests in a different country, they make a stabilization agreement for a specific duration of time for a stable tax burden. If a government wants to tax the company more but can’t, they will call it a contribution/fee -> judge must rule whether it is a tax or not

Question 6

Direct vs. indirect taxes

Answer 6

Direct taxes are collected directly from the taxpayer to the government

Indirect taxes are usually taxes on consumption

Question 7

Direct taxes include both

Answer 7

Taxes on income (personal, corporate, capital gains) and wealth (property, net wealth, inheretance)

Question 8

What does withholding taxes mean?

Answer 8

If you work for a company and earn your money from them, the company pays your taxes directly to the tax administration

Question 9

Is social security contributions a tax?

Answer 9

Depends on the country; European social security contributions tend to be more organizaed as a tax, whereas in the US it works more like a private system with payments

Question 10

What is the sustainable development agenda?

Answer 10

An agenda to guide development policy with different policy goals to be fulfilled by 2030, agreed by all UN members in 2015

Question 11

What are the 4 roles of taxation for the sustainable develoment agenda?

Answer 11

1. Generate funds for development activities (decent work and economic growth)
2. Affect equity and economic growth (gender equality, clean energy)
3. Influence tax payer behavior (climate action, good health)
4. Support social contracts (peace, justice, institutions, trust in government)

Question 12

Which type of tax has the biggest potential for SDGs?

Answer 12

Income tax -> progressivity can increase equity