TORUŃSKI ROCZNIK PODATKOWY

Filip Majdowski
Economic theories underpininng taxation of foreign income – review of the foreign scholarly research in the context of construction of the controlled foreign corporation regime

Summary

The subject of the article is to present the achievements of the American and European tax law doctrine in the field of economic theories devoted to the taxation of foreign income. These theories defined by the prism of the neutrality of the tax system are also referred to as neutrality measures, among which three key standards can be distinguished, such as the standard of capital export neutrality, the standard of capital import neutrality and the standard of ownership neutrality. The construction of a tax policy based on a given standard sets the jurisdictional limits of the tax system, primarily in the context of taxation or its lack of income obtained by a tax resident from foreign sources of income, which in turn should theoretically impact the shape of controlled foreign corporation (CFC) regulations. The experience of the United States in which the debate over the reform of the CFC regime (Subpart F) was performed against the above standards does not however prove such a correlation.

 

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Key words: tax law, tax, income tax, CFC