Shaheda Natha reviews Schwarz on Tax Treaties, Sixth Edition, by Jonathan Schwarz - a useful analysis of tax treaties from a UK and Irish perspective.
Now in its sixth edition, Schwarz on Tax Treaties is a detailed exploration of the world of international taxation. Using the UK and Irish domestic law provisions to form the basis of its analysis, it employs an impressive range of treaty and case law examples to bring to life the complex interaction of domestic law with tax treaties on a broad set of international tax issues. With expert analysis, this book helps brings welcome clarity for even the most experienced international tax practitioner on a challenging subject.
This edition builds upon previous versions by adding analysis of the Irish treaty network and its position in relation to tax treaties. It is also updated to include recent changes, including the latest UK and Irish domestic law and treaty developments, Covered Tax Agreements modified by the BEPS Multilateral Instrument, Digital Services Tax, Brexit and the EU-UK Trade and Cooperation Agreement, attribution of profits to permanent establishments, and EU DAC 6 Disclosure of cross-border planning.
The book starts with the sources of international law on taxation and their interaction with domestic provisions, and provides a comprehensive analysis, using the UK and Ireland as examples for drilling down into the different areas. Together with commentary on judicial decisions and administrative practice, it provides the reader with a rounded international perspective of the issues.
As a corporate international tax practitioner, I found the section on permanent establishments (PEs) proved to be particularly insightful. Rightly described in the book as the ‘cornerstone of cross-border business taxation’, dealing with the key tenet of international taxation: the allocation of taxing rights, PEs probably carry the greatest burden of challenge in the international courts. As such, the detailed analysis and related commentary were especially helpful. The section contains an up-to-date analysis of the UK and Irish domestic provisions, with a litany of different treaty texts and case law examples, including the notorious PE challenges from the Indian Tax Authority, as well as the recent high-profile French PE challenge of Google Ireland Limited, together with the contrasting subsequent French decision on Valueclick International Limited.
Given the extensive contextual commentary relating to international tax principles, an overview on the general motivations for applying withholding taxes by source states and their mitigation would have nicely rounded off the book. However, since certain specific withholding taxes are already covered, it may have been difficult to introduce separately without disturbing the logical sequencing of the book.
With its comprehensive analysis of the laws and principles governing international taxation, by using the UK and Irish domestic law positions, together with hundreds of treaty and case law examples, this book provides many practical insights on a complex subject matter and is an excellent source of reference for anyone involved in the area of international taxation.
About the author
Shaheda Natha, Director, Corporate International Tax Services, BDO LLP
Schwarz on Tax Treaties, Sixth Edition, by Jonathan Schwarz (Kluwer Law International, £187)