Legal Regime of International Double Non-taxation

The purpose of this diploma is to define the legal regime of international double non-taxation by developing a national approach to the meaning of the term “double non-taxation” and identifying the main problems arising from the concept and threatening the correct functioning of national tax systems as well as proposing the most appropriate mechanism for their resolution. The paper consists of the introduction, three chapters, conclusion and the list of sources. First of all, the study seeks to provide a generally accepted definition of double non-taxation. The second chapter of the work is devoted to the analysis of double taxation avoidance agreements as the reason for emergence of the double non-taxation problem in terms of improper use of tax benefits. In particular, the problem of double non-taxation of profits of the legal persons is analyzed, as one of the most relevant at the moment. The third chapter covers the formation of a mechanism to eliminate international double non-taxation, which includes both international actions to resolve this problem and national measures to combat double non-taxation and its consequences. The study led to the following conclusions: firstly, double non-taxation should be understood as both cases of total non-taxation and reduced taxation; secondly, double taxation avoidance agreements are the main source of double non-taxation; thirdly, most of the treaty abuses in the RF that related to double non-taxation of corporate income tax are associated with the obtaining of passive income through the use of tax avoidance and tax evasion schemes, mainly via affiliated (conduit) companies; fourthly, in the framework of the implementation of the BEPS Plan in the Russian Federation, a rather “rigid” tax policy was adopted to prevent double non-taxation, which may lead to a more effective campaign against cases of double non-taxation in the future.