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.