TAX-TREATY OVERRIDE

PUBLIC INTERNATIONAL LAW, COMPARATIVE AND CONSTITUTIONAL PERSPECTIVES

Abstract

We are quite familiar with violations or breach of contract in civil law due to misbehavior on the part of one of the contracting partners or for other reasons. But we might be surprised that states, bound to treaties by international law and by their domestic constitutions including the Rule of Law, would intentionally and purposely breach their international treaty obligations. They might do so not merely by neglecting their treaty obligations but likewise by purposely counteracting these obligations through the strict order of national law. In the realm of international taxation and with respect to international double taxation agreements, treaty override has a long tradition in a variety of countries. I shall come back to this point later by presenting a short comparative overview. Let me first give a short introduction into international tax law and international tax treaty law.