tax

Georgia Law Professor Assaf Harpaz publishes article in American University Law Review

University of Georgia School of Law Professor Assaf Harpaz published “Global Tax Wars in the Digital Era” in the American University Law Review (Vol. 75, 2025). The article explores the global conflict over tax governance, particularly the tensions between OECD-led Global North countries and the UN-backed Global South. It argues for a shift toward source-based taxation that would allow countries to tax online businesses that have a “significant economic presence” without a physical one.

The article’s abstract can be found below:

The digital economy fundamentally disrupts international tax principles that rely on physical presence. When a business earns income abroad, the country of residence (where the taxpayer resides) and the country of source (where income is generated) both have legitimate, competing claims to tax that income. The international tax system tends to favor residence-based taxation. The source country has the right to tax business profits only if the enterprise carries on a permanent establishment within its borders, which typically requires physical presence. The permanent establishment standard becomes flawed in a digital economy where profit shifting practices are abundant and businesses no longer need a physical presence in the location of their online consumer markets.

An upcoming United Nations Framework Convention on International Tax Cooperation recognizes these challenges and is overwhelmingly supported by Global South economies. However, the Global North has historically dominated the international tax regime through the Organization for Economic Co-operation and Development (OECD), informally known as the “World Tax Organization.” A U.N. framework convention creates potential conflict in international tax policymaking and would need to bridge the underlying North-South divide.

This Article explores the “tax wars” surrounding the leadership for global tax governance, contrasting the taxing powers and interests of the OECD-led Global North with those of the U.N.-backed Global South. It argues for a shift toward source-based taxation by revisiting the permanent establishment standard. To achieve this, the Article promotes a significant economic presence doctrine that would expand the permanent establishment criteria to include online businesses. This proposal addresses longstanding inequities and is increasingly warranted in a digital economy that does not depend on physical presence.

Harpaz joined the University of Georgia School of Law as an assistant professor in summer 2024 and teaches classes in federal income tax and business taxation. Harpaz’s scholarly focus lies in international taxation, with an emphasis on the intersection of taxation and digitalization. He explores the tax challenges of the digital economy and the ways to adapt 20th-century tax laws to modern business practices.

Georgia Law Professor Victoria J. Haneman presents at the University of Cambridge

University of Georgia School of Law Professor Victoria J. Haneman presented “The Politics of Impermanence” as part of the Perspectives on the Development and Enactment of Tax Policy Conference at the Centre for Tax Law at the University of Cambridge in the United Kingdom this summer. 

Haneman joined the University of Georgia School of Law in the fall of 2025 as the holder of the Verner F. Chaffin Chair in Fiduciary Law. Haneman comes to UGA from Creighton University, where she was a member of the law school’s faculty for seven years. In 2023, she was appointed the associate dean for research and innovation. She also held the Frank J. Kellegher Professorship of Trusts & Estates and served as the interim director of the health law program for the 2023-24 academic year. Haneman has a particular interest in tax policy, death care services, industry disruption, emerging markets, and women and the law.

Georgia Law Professor Assaf Harpaz presents at the 2025 Law and Society Association Annual Meeting

University of Georgia School of Law Professor Assaf Harpaz  presented his paper, Artificial Intelligence and Taxpayer Entity, at the 2025 Law and Society Association Annual Meeting in May. This presentation was part of the Global Taxation and Policy panel. Harpaz also chaired the conference’s panel on Local Governments and Tax Benefits.

Below is an abstract of the paper:

Artificial intelligence (AI) is changing the world and presents numerous challenges to legal and regulatory frameworks. The evolving, complex yet still ambiguous concept demands rethinking longstanding doctrines at risk of obsoleteness. These tensions are highlighted in federal income taxation, which generally compartmentalizes taxpayers into individuals and business entities. Technological developments such as generative AI upend these conceptions given their capacity to create value and operate autonomously, interacting with the economy in ways that combine human and non-human attributes.

Under current U.S. law, even the most advanced AI models are not directly subject to the income tax regime, as they are neither individuals nor separate business entities. AI is poised to dramatically reshape the tax base by altering both the sources of income (from humans to robots) and the type of income (from labor to capital) that is subject to tax.

This article examines the intersections and frictions between AI models and federal income tax policy. It focuses on questions of taxpayer entity and ownership that arise from the widespread use of AI. The article argues that the unique and non-binary characteristics of AI challenge the principles of personhood, income, and asset character, at the foundation of the income tax system. The extent of disruption will depend on the degree to which AI displaces human labor and achieves sentience.

Harpaz joined the University of Georgia School of Law as an assistant professor in summer 2024 and teaches classes in federal income tax and business taxation. Harpaz’s scholarly focus lies in international taxation, with an emphasis on the intersection of taxation and digitalization. He explores the tax challenges of the digital economy and the ways to adapt 20th-century tax laws to modern business practices.

Georgia Law Professor Walter Hellerstein presents at OECD Working Party

University of Georgia School of Law Professor Emeritus Walter Hellerstein presented “Overview of U.S. Federal Income Tax Reporting Regulations for Brokers of Crypto-Assets” at a meeting of the Organization for Economic Cooperation and Development Working Party No. 9 on Consumption Taxes in Paris, France, during May.

The Working Party No. 9 on Consumption Taxes is a forum for the discussion of consumption tax policy and administration, working with both Members and non-Members of the OECD to develop appropriate and effective taxation outcomes. To read more about Professor Hellerstein’s previous presentation at the OECD, click here.

Hellerstein is the Distinguished Research Professor & Francis Shackelford Distinguished Professor in Taxation Law Emeritus. He is a recipient of the National Tax Association’s Daniel M. Holland Medal for outstanding lifetime contributions to the study and practice of public finance, is widely regarded as the nation’s leading academician on state and local taxation. He has authored numerous books, textbooks, and law review articles, and has practiced extensively in the field. Hellerstein is currently a Visiting Professor at the Vienna University of Economics and Business, and he remains actively involved in his scholarship, consulting, and, in particular, his work as an academic advisor to the OECD.

Georgia Law Professor Assaf Harpaz presents at Columbia Law’s Davis Polk & Wardwell Tax Policy Colloquium

University of Georgia School of Law Professor Assaf Harpaz presented his draft paper “Global Tax Wars in the Digital Era” at Columbia Law School’s Davis Polk & Wardell Tax Policy Colloquium earlier this month.

Below is an abstract of the paper:

The digital economy fundamentally disrupts traditional international tax principles that rely on physical presence. When a business earns income abroad, the country of residence (where the taxpayer resides) and the country of source (where income is generated) both have legitimate, competing claims to tax that income. The international tax system favors residence-based taxation. The source country has the right to tax business profits only if the enterprise carries on a permanent establishment within its borders, which typically requires a physical presence. The permanent establishment standard becomes flawed in a digital economy where profit shifting practices are abundant and businesses no longer need a physical presence in the location of their online consumer markets.

An upcoming United Nations (UN) Framework Convention on International Tax Cooperation recognizes these challenges and is overwhelmingly supported by Global South economies. However, the Global North has historically dominated the international tax regime through the Organization for Economic Co-operation and Development (OECD), informally known as the “World Tax Organization.” A UN framework convention creates potential conflict in international tax policymaking and would need to bridge the underlying North-South divide.

This article explores the “tax wars” surrounding the leadership for global tax governance, contrasting the taxing powers and interests of the OECD-led Global North with those of the UN-backed Global South. It argues for a shift toward source-based taxation by revisiting the permanent establishment standard. To achieve this, the article introduces a significant economic presence doctrine that would expand the permanent establishment criteria to include online businesses. This proposal addresses longstanding inequities and is increasingly warranted in a digital economy that does not depend on physical presence.

Harpaz joined the University of Georgia School of Law as an assistant professor in summer 2024 and teaches classes in federal income tax and business taxation. Harpaz’s scholarly focus lies in international taxation, with an emphasis on the intersection of taxation and digitalization. He explores the tax challenges of the digital economy and the ways to adapt 20th-century tax laws to modern business practices.

Georgia Law Professor Walter Hellerstein presents at Vienna University of Economics and Business

Distinguished Research Professor & Shackelford Distinguished Professor in Taxation Law Emeritus Walter Hellerstein presented as part of a panel on taxable persons and related issues in VAT law at the Court of Justice of the European Union Conference held at the Vienna University of Economics and Business in Austria during January. 

A description of the conference can be found below:

This conference will focus on the recent case law of the Court of Justice in the area of indirect taxation. The judgment rendered from September 2018 onwards and important previous judgments will be analyzed by panels consisting of leading academics, judges, government representatives and business representatives.

Hellerstein joined the University of Georgia School of Law faculty in 1978 and was named the Francis Shackelford Distinguished Professor in Taxation Law during 1999 and a UGA Distinguished Research Professor in 2011. He taught in the areas of state and local taxation, international taxation and federal income taxation until he retired from teaching at the School of Law in 2015. He is currently a Visiting Professor at the Vienna University of Economics and Business, and he remains actively involved in his scholarship, consulting and, in particular, his work as an academic advisor to the Organisation for Economic Cooperation and Development (OECD).

Georgia Law Professor Assaf Harpaz presents at SEC Workshop

University of Georgia School of Law Professor Assaf Harpaz presented his draft paper “Global Tax Wars in the Digital Era” at the University of Alabama School of Law as part of the Junior/Senior SEC Workshop.

Below is an abstract of the paper:

Current debates in international taxation often center on how to fairly allocate taxing rights among different jurisdictions. When an enterprise earns income abroad, the country of residence (where the taxpayer resides) and the country of source (where income is generated) have legitimate, competing claims to tax that income. The question is further complicated in a digital economy where profit shifting practices are abundant and businesses no longer require a physical presence in the location of their online consumers.

The international tax system has traditionally favored residence-based taxation. Now, international taxation is at a crossroads with intergovernmental organizations battling to redefine the principles of cross-border taxation. The regime has been dominated by the Global North through the Organisation for Economic Co-operation and Development (OECD), which has drawn backlash due to its undemocratic procedure and unfavorable outputs for developing countries. The United Nations has held a relatively peripheral role in global tax governance, which is poised to change with an upcoming UN Framework Convention on International Tax Cooperation – an initiative overwhelmingly supported by developing countries.

This article explores the “tax wars” surrounding the leadership for global tax governance, contrasting the taxing powers and interests of the OECD-led Global North with those of the UN-backed Global South. It highlights the distortive outcomes created by outdated international tax principles and argues for a shift toward source-based taxation. To do so, it proposes revisiting the permanent establishment standard in model treaty language, creating an opportunity for broader taxation of business profits in the source country. This transition will address longstanding disparities and is increasingly warranted in a digital economy that does not rely on physical presence.

Assaf Harpaz joined University of Georgia School of Law as an assistant professor in summer 2024 and teaches classes in federal income tax and business taxation. Harpaz’s scholarly focus lies in international taxation, with an emphasis on the intersection of taxation and digitalization. He explores the tax challenges of the digital economy and the ways to adapt 20th-century tax laws to modern business practices.

Georgia Law Professor Assaf Harpaz publishes article on the U.N. Framework Tax Convention

University of Georgia School of Law assistant professor Assaf Harpaz published an article titled “The U.N. Framework Tax Convention: Can It Bridge the North-South Divide?” in the tax publication Tax Notes International.

In this article, Harpaz explains the key issues being addressed in the U.N. framework convention on international tax cooperation, including the global north-south divide and its role in the multilateral process.

The article’s abstract is as follows:

The United Nations recently concluded the second session of negotiations on terms of reference for a framework convention on international tax cooperation. The framework convention presents an opportunity to multilaterally address pressing global tax issues. Its goal is to “strengthen international tax cooperation and make it fully inclusive and more effective.”

The extensively negotiated terms of reference make several substantive commitments, including the fair allocation of taxing rights; tax evasion and avoidance by high-net worth individuals; sustainable development; mutual administrative assistance in tax matters; tax-related illicit financial flows; and prevention and resolution of tax disputes.

The ongoing multilateral effort brings the promise of a more equitable international tax regime. However, support for the U.N.’s work and the substantive issues identified has been sharply divided along global north-south lines. A successful U.N. process will need to acquire legitimacy from both the developed superpowers and the developing countries that have historically been excluded from international tax policymaking decisions.

The article explains the key issues being addressed in the U.N. framework convention on international tax cooperation, including the global north-south divide and its role in the multilateral process.

Assaf Harpaz joined University of Georgia School of Law as an assistant professor in summer 2024 and will teach classes in federal income tax and business taxation. Harpaz’s scholarly focus lies in international taxation, with an emphasis on the intersection of taxation and digitalization. He explores the tax challenges of the digital economy and the ways to adapt 20th-century tax laws to modern business practices.

Georgia Professor Assaf Harpaz selected as laureate at the Journal of International Economic Law Junior Faculty Forum

University of Georgia School of Law assistant professor Assaf Harpaz has been selected as a laureate to present his paper titled “Global Tax Wars and the Shift to Source-Based Taxation” at the Journal of International Economic Law Junior Faculty Forum (JIEL JFF).

Below is an abstract of the paper:

Current debates in international taxation often focus on how to fairly allocate taxing rights between jurisdictions. When an enterprise earns income abroad, both the country of residence (where the taxpayer resides) and the country of source (where income is generated) have legitimate, competing claims to tax that income. The issue is further complicated in a digital economy where tax avoidance and profit shifting practices are abundant.

Income tax treaties have traditionally favored residence-based taxation. Now, the international tax framework is at a crossroads with intergovernmental organizations battling to redefine the principles of cross-border taxation. The regime has been dominated by the Global North through the Organisation for Economic Co-operation and Development (OECD), which has drawn backlash due to its undemocratic procedure and unfavorable outcomes for developing countries. The United Nations has held a relatively peripheral role in global tax governance, yet this could change with an upcoming UN Framework Convention on International Tax Cooperation – an initiative overwhelmingly supported by developing countries. This article conceptualizes the international tax discourse as “tax wars,” contrasting the taxing powers and interests of the OECD-led Global North with those of the UN-backed Global South. It highlights the distributive effects of tax treaties and argues for a shift toward source-based taxation. To do so, it proposes revisiting the permanent establishment standard in model treaty language, creating an opportunity for broader taxation of business profits in the source country. This transition will address longstanding disparities and is increasingly warranted in a digital economy that does not rely on physical presence

Assaf Harpaz joined University of Georgia School of Law as an assistant professor in summer 2024 and will teach classes in federal income tax and business taxation. Harpaz’s scholarly focus lies in international taxation, with an emphasis on the intersection of taxation and digitalization. He explores the tax challenges of the digital economy and the ways to adapt 20th-century tax laws to modern business practices.

Georgia Law Professor Assaf Harpaz presents at International Roundtable on Taxation and Tax Policy

University of Georgia School of Law professor Assaf Harpaz presented his draft paper “Global Tax Wars and the Shift to Source-Based Taxation” and chaired the “Jurisprudence and Enforcement” panel at the 8th International Roundtable On Taxation And Tax Policy during July.

Below is an abstract from the draft paper:

Current debates in international taxation frequently engage with the concept of global tax fairness, relating to the equitable allocation of taxing rights between jurisdictions. These questions emerge within an international tax framework at a critical juncture. In a rapidly evolving digital economy, intergovernmental organizations are battling to shape the cross-border tax agenda. Global North economies have dominated this regime through the Organisation for Economic Co-operation and Development (OECD), which has drawn backlash due to its undemocratic procedure and unfavorable outcomes for developing countries. Meanwhile, the United Nations has occupied a relatively peripheral role in global tax governance. However, its role could change with the establishment of a new Framework Convention on International Tax Cooperation – an initiative overwhelmingly supported by the world’s developing countries.

The article conceptualizes the contemporary international tax discourse as “tax wars,” contrasting the taxing powers and interests of the OECD-led Global North with those of the UN-backed Global South. It explores the standards and preferences that have underpinned the regime since its inception, focusing on residence and source taxation. The article argues for a shift towards source-based taxation, drawing on procedural and distributive justice principles. To do so, the article proposes expanding the permanent establishment standard in model treaty language, creating an opportunity for broader taxation of business profits in the source country. This transition will address longstanding disparities and is increasingly warranted in a digital economy that does not rely on physical presence.

Assaf Harpaz joined University of Georgia School of Law as an assistant professor in summer 2024 and will teach classes in federal income tax and business taxation. Harpaz’s scholarly focus lies in international taxation, with an emphasis on the intersection of taxation and digitalization. He explores the tax challenges of the digital economy and the ways to adapt 20th-century tax laws to modern business practices.