Double taxation conventions in Romania Case: DSSs Râşnov vs. ANAf braşov

Abstract

Conventions to avoid double taxation are thepanaceaof tax law,lato sensu, and direct taxation,stricto sensu. Although the current network of double taxation conventions has over 2500 tax treaties concluded by the world’s states, there are still issues that need to be addressed in their application: the anti-abuse provisions to be found in conventions, the practices of the type treaty shopping, LOB clauses, use of arbitration in the application of double taxation avoidance conventions. The case of Romania is analyzed in this article, through the DSSs Râşnov cause vs. ANAF Brasov, in order to highlight the way in which the framework of the double taxation avoidance convention is applied in Romania, if there are differences and divergences between thede jureprovisions of the double taxation avoidance conventions and thede factoapplication, in practice, a state like Romania, which is in the process of catching up with economies in developed countries. The case presented in this article suggests that there is stillroom for maneuverto improve the framework for double taxation avoidance conventions in Romania and how they are applied in practice, which their provisions are interpreted and respected.

Practical Issues Regarding International Underppinnings of Tax Legislation Under the Auspices of Law No. 296/2020

“…Smit (2016) analyzes the status quo of non-juridical double taxation presenting certain jurisprudential aspects manifested especially at a European and international level, the author suggesting that the various problems that may arise in avoiding double legal taxation may arise due to issues related to international tax planning. Practical issues regarding double taxation avoidance conventions from a jurisprudential perspective were addressed by Dumiter et al (2017). In this study, the authors started from the institutional framework of national and international double taxation conventions.…”