Israeli and International tax law

The Department of Law of the University of Ferrara is proud to offer a 30 hours (3 ECTS credits) course on Israeli and International tax law this semester, starting from April 17th 2024.

The course is possible thanks to the generous support of the Israel Institute and will be delivered by Dr. Nellie Munin, who is Professor of taxation at the Zefat Academic College (IL).

Registration now open:

Admission is reserved to the Students of the University, but we are open to others. Should you be interested in joining us, please drop a mail to marco.greggi@unife.it, clarifying your position (student, researcher ...) and the reasons you want to attend the meetings.

Participation is possible upon invitation only.

Introduction to the Course

Globalization creates, illuminates and intensifies many dilemmas with regard to international taxation. While in the past, taxation used to be considered mainly a national affair, globalization necessitates coordination of policy and practice among countries, to achieve goals such as due allocation of revenues, counterfeiting tax avoidance and tax evasion, the prevention of unfair tax competition and tax system abuse for criminal and terrorist purposes. 

Israel – a small country highly depending on international trade and investments, is highly exposed to these risks.

The course will examine the way Israel navigates in a global world in terms of its international taxation policy. This policy aims, on the one hand, at facilitating international trade and attracting foreign investments, while on the other hand preventing abuse of globalization by Israeli taxpayers, to avoid or evade tax payment. It will critically explore Israel's policy options and choices, introducing its use of national, regional and multilateral legal instruments to achieve its goals.

LEARNING FORMAT

The learning format includes interactive lectures (backed by PowerPoint presentations) and class discussions based on reading, in which students will analyze the dilemmas involved.  

PERFORMANCE REQUIREMENTS AND GRADING

Most of the learning is experienced in the classroom and cannot be attained only through reading. Therefore, full attendance in class is required; useful and productive participation is expected, and both will contribute to the final grade.  There is also a final quiz in this course, though, which relies on the readings assigned and class discussions.  Passing the quiz and fulfilling the participation requirement will award the participant a passing grade. 

Classes Plan 

Please note that there may be some alterations according to instructor's discretion

Unit #1 : The Israeli economy, tax motivation and obstacles.

Topics covered:

• Course info.
• Introduction to the Israeli economy, tax motivation and obstacles.

Unit #2: The values underlining Israeli taxation.

Topics covered:

• Distributive Justice: Socialist/ Liberalist/ Capitalist approach? 
• State revenue
• FDI attraction
• Tax reliefs – to whom?
• The Israeli chosen combination of values enhanced by taxation.

Unit #3: Israeli Tax composition

Topics covered:

• Direct tax (on income, capital gains and real estate)– advantages and disadvantages.
• Indirect tax (on purchase: VAT, purchase tax, excise) – advantages and disadvantages.
• How to determine national tax composition? Exercise and analysis of the Israeli example.

Unit #4: The Global and Israeli Rules for International Taxation of Individuals

Topics Covered:

• Personal or territorial tax base?
• Nationality, residency and the 'center of life' test.
• Analyzing the rules implementation and interpretation through discussion on Israeli court cases: Sapir, Refaeli.

Unit #5: The Global and Israeli Rules for International Taxation of Corporates

Topics Covered:

•  How to determine the situs of corporations for tax purposes?
•  The perception of 'permanent establishment'.
•  Analyzing the rules implementation and interpretation through discussion on Israeli court cases: Niago; Yanko-Veiss; Shay Tzamarot.

Unit # 6: Treaties for the Avoidance of Double Taxation: the Israeli choice

Topics Covered:

• Purpose.
• OECD model.
• Major rules.
• Israel's treaties for the avoidance of double taxation – scope, content and policy choices.

Unit # 7: The Effect of Unfair Tax Competition and Tax Havens on the Israeli Law

Topics Covered:

• Definition.
• OECD rules.
• The Israeli approach (Kontera, Finisar cases).

Unit # 8: Multinational Enterprises and Aggressive Tax Planning (Tax Base Erosion)

Topics Covered:

• Treaty shopping.
• Hybrid mismaches.
• Trasfer pricing.
• The Israeli approach – legislation and judgments.

Unit # 9: The multilateral sphere 

• The BEPS (OECD) rules: 15 instruments.
• BEPS rules' implementation in Israel.
• MLI (OECD) and its application in Israel.
• A global minimum tax on multinationals' profits?
• MLI implementation in Israel.

Unit # 10: Indirect Taxation and its Effect on Israel's International Trade Policy

• VAT, Customs duties and Purchase Tax as trade barriers or trade facilitators.
• The Israeli use of indirect taxes to regulate international trade.