Here you can find a short introduction of the course: https://short.wu.ac.at/beps

The course deals with the most recent chapter of international taxation that is dominated by the OECD/G20 Base Erosion and Profit Shifting (BEPS) project initiated in 2013. The BEPS project aims at countering aggressive tax planning, tax base eroding and profit shifting activities by multinational enterprises (MNEs). The course introduces students into MNE tax planning through which they make use of loopholes in the international tax rules and exploit mismatches between domestic tax systems to reduce their overall tax liability. It provides an insight into MNE tax planning through case studies and examines the measures that the OECD/G20/Inclusive Framework put forward to fight aggressive tax planning under the two phases of the BEPS project. It will explain the purpose and operation of various anti-avoidance rules that were introduced into domestic tax laws as a result of the first phase of the BEPS project. In addition, it will examine the second phase of the BEPS project that proposed fundamental changes to the international tax rules going beyond the fight against profit shifting. Parallel efforts and the implementation of anti-BEPS measures in the EU will also be examined during the course.

More in details, the classes will cover the following content.

Lecture 1 - Introduction to the BEPS project: background, purpose and overview of the BEPS project"

The class provides a basic understanding of what is base erosion and profit shifting and what the BEPS project means. It gives an overview of the BEPS Action Plan, that is the areas of international taxation that were perceived as the weakest parts thereof giving rise to BEPS opportunities for MNEs and therefore needed new reinforced measures and reforms.

Lecture 2 - Taxation of the digitalized economy

The class aims at explaining the main features of the digital/digitalized economy and why they pose challenges to taxing international business income based on the existing international tax rules. It covers the start of the work under the first part of the BEPS project and its continuation that led to the proposed solution under the Two-Pillar Solution to reallocate taxing rights to market jurisdictions.   

Lecture 3 - Abuse of tax treaties, treaty shopping

The class aims at explaining how tax treaties can be abused, what treaty shopping means, what the two main anti-abuse provisions are that BEPS Action 6 recommended to introduce into tax treaties, i.e. the PPT and the LoB provisions.

Lecture 4 - Implementation of BEPS measures: Multilateral Instrument (MLI) and the EU Anti-Tax Avoidance Directive (ATAD)

The class aims at explaining how the tax treaty-related BEPS measures are being introduced into existing tax treaties through the MLI. It also deals with the EU ATAD explaining its nature and the five anti-abuse provisions that are set out in it referring to the Austrian implementation of these provisions.

Lecture 5 - Harmful tax practices that facilitate aggressive tax planning and their control and Introduction to Pillar Two

The class provides an understanding of the basic concept of harmful tax competition and that it is the other side of the coin of aggressive tax planning and BEPS practices. It also briefly discusses the measures adopted by the OECD and by the EU to tackle harmful tax practices. We will also look at the basic idea, mechanism and implementation in the EU of Pillar Two that aims at introducing a global minimum level of taxation on MNSs thereby placing a limit on tax competition.

The students will get familiar with the essential forms and objectives of tax planning by multinational enterprises. They will understand why it is important to curtail aggressive tax planning and tax avoidance and what the legal means and instruments are available for this purpose. In addition, the students will get a basic understanding of the fundamental reform of the international tax system that is currently ongoing under the Two-Pillar-Solution agreed on in 2021 by the vast majority of nations and what the stakes are in this reform in terms of the allocation of taxing rights between nations and the future of tax competition.

This course is not focused on a specific domestic legal system and it will therefore provide students with a general understanding of the legal means and instruments that are normally available to tackle aggressive tax planning and tax avoidance. European Law aspects of the topic will be covered by the course.

> 70% attendance requirement

Lecture, case studies, group presentations by students, moderated whole-class and group discussions

Prerequisites to pass the course:

• Group presentation (25% of the final grade)
• Written exam (75% of the final grade)

The Seminar requires basic knowledge of:

• company taxation in an international context

• the OECD Model Tax Convention and

• EU direct tax law

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• 1. When writing a seminar paper, the introduction must contain a declaration of the use of AI. If no form of AI was used, a note to this effect is sufficient. If AI was used, the introduction must explain accordingly where and in what form.
  2. For seminar papers, increased attention will be paid to:
• Whether the processed legal status is up-to-date
• Correct/existent citations
• Correct use of abbreviations
• Comprehension
• Errors in the outline