International Tax Competition Invitation by MichaelChoate


									                                                                                                Rome, 9 October 2009
9 October 2009

Registration until 1 October 2009 at:
                                           Invitation   International Tax Competition
Roberta Iannizzi                                        Trends and Solutions from an
e-mail:                Italian-German Perspective
Ernesto Zangari
e-mail:                 Speakers
                                                        Giampaolo Arachi, University of Salento
The seminar is free.                                    Vieri Ceriani, Head of the Tax Department, Banca d’Italia
                                                        Clemens Fuest, Oxford University

                                                        Matthias Geurts, Deutsche Bank
Villa Hüffer, Banca d´Italia                            Silvia Giannini, University of Bologna
Via Nazionale 191 - Rome                                Wolfgang Kessler, University of Freiburg
                                                        David Pitaro, Tax Department, Banca d’Italia
Information                                             Giacomo Ricotti, Tax Department, Banca d’Italia
Rolf Eicke                                              Alessandra Sanelli, Tax Department, Banca d’Italia
e-mail:                  Christoph Watrin, University of Münster
In the wake of globalization international tax competition has gained        Giampaolo Arachi                                            Wolfgang Kessler
substantial importance. The joint seminar will shed some light on            University of Salento                                       Director of the Institute of Business Taxation,
the issues to be presented by the following experts.                                                                                     University of Freiburg
                                                                             Vieri Ceriani
                                                                             Head of the Tax Department, Banca d’Italia                  David Pitaro
                                                                                                                                         Tax Department, Banca d’Italia
                                                                             Clemens Fuest
                                                                             Professor of Business Taxation and Director of the Centre   Giacomo Ricotti
                                                                             for Business Taxation at the University of Oxford           Tax Department, Banca d’Italia                               The Seminar is free.
                                                                                                                                                                                                      For registration and information please contact:
                                                                             Matthias Geurts                                             Alessandra Sanelli
                                                                             Group Tax, Deutsche Bank                                    Tax Department, Banca d’Italia                               Roberta Iannizzi
                                                                             Silvia Giannini                                             Christoph Watrin
                                                                             University of Bologna                                       Director of the Institute of Accounting and Taxation,        Ernesto Zangari
                                                                                                                                         University of Münster                                        e-mail:

                                                                        01                                                                                                                       02
Programme                                         9.15 – 10.30                                                                   11.00 – 12.15                                                                            12.15 – 13.30

                                                  The trend to link tax provisions to IFRS in Italy and Germany                  Measures taken by the Italian and German governments to cope                             The tax treatment of household financial income in Italy and Ger-
                                                  IFRS are going to be the common framework for consolidated and single          with international tax competition                                                       many: towards a common model?
                                                  balance accounts in the EU. The passage from national GAAP to IFRS rep-        The increasing worldwide tax competition is putting pressure on high tax ju-             With the growing integration of financial markets, taxation of capital income
                                                  resents a challenge for both companies and tax authorities. The main task      risdictions to strengthen anti-avoidance rules in order to prevent domestic              earned by individuals is becoming a relevant issue for tax administrations
                                                  is to find a link between IFRS principles and tax rules, without increasing    tax base erosion. Italy and Germany have focused their anti-avoidance rules              and financial intermediaries. These latter play an increasing role as paying
                                                  compliance costs for corporations. From this point of view, considering that   on international transactions (involving foreign income, foreign persons and             agents and tax information providers. In many countries there has been a
                                                  Italy provided for compulsary IFRS regarding the single accounts of banks      transfer of assets abroad), as tax arbitrage and tax evasion is more likely to be        shift from the traditional model of comprehensive and progressive personal
                                                  and listed companies since 2005, the Italian experience represents a useful    carried out through foreign jurisdictions, especially those not allowing an ad-          taxes towards flat taxes and withholding taxes. Italy and Germany represent
9.00 – 9.15                                       case study for other EU countries.                                             equate exchange of information. Apart from the most common international                 interesting case-studies of these trends and show many common features.
                                                                                                                                 anti-avoidance provisions (CFC, thin cap, etc.), Italy has developed, during             At international level, taxation of cross-border capital income gives rise to
Welcome and Introduction                          Italian speaker: Giacomo Ricotti, Tax Department, Banca d’Italia               the last decade, other rules, such as presumption of residence for foreign               various tax issues (elimination of double taxation, administrative costs, non-
Vieri Ceriani                                     German speaker: Christoph Watrin, University of Münster                        entities and limitation of deductibility for expenses paid to foreign suppliers.         discrimination, etc.) with reference to institutional investments (by CIVs,
Head of the Tax Department, Banca d’Italia                                                                                                                                                                                pension funds, hedge funds, etc.).
                                                                                                                                 Italian speaker:Silvia Giannini, University of Bologna,
Wolfgang Kessler                                                                                                                                 David Pitaro, Tax Department, Banca d’Italia                             Italian speaker: Alessandra Sanelli, Tax Department, Banca d’Italia
University of Freiburg                            10.30 – 11.00           Coffee Break                                           German speaker: Wolfgang Kessler, University of Freiburg                                 German speaker: Matthias Geurts, Deutsche Bank

                                             03                                                                                                                                                                      04
                           14.30 – 15.45                                                                 16.15 – 17.30

                           Tax obstacles for the European cross-border groups and the EU                 Round Table
                           Commission initiatives                                                        W. Kessler, C. Fuest, S. Giannini, M. Aujean, Prof. G. Arachi                        other EU Member States, is conditioned by international tax competition
                           Cross-border groups and business restructurings of European multina-                                                                                               and the need to respect EU law and ECJ decisions.
                           tionals can be hindered by tax rules, with adverse effects on the EU inte-    Lessons Learned?
                           gration process. These issues involve primarily the application of transfer   a) The impact of international tax competition on Italian and                        Specific attention has to be paid to developments of Double Taxation
                           pricing, tax treatment of losses and exit taxes. Purely domestic tax rules       German tax policies.                                                              Treaties and of EC initiatives that could affect the German and Italian tax
                           represent an inadequate answer, as recent cases involving Italian and         b) How Italian and German tax laws influence each other?                             policies, as well as those of other EU Member States.
                           German companies demonstrate. At European level, two main initiatives         c) What are the prospects?
                           have been launched to remove obstacles to cross-border business ac-
                           tivities: the Societas Europaea (SE) and the Common Consolidated Cor-
                           porate Tax Base (CCCTB). The diffusion of SE is hampered by several tax       German and Italian tax reforms enacted during the current decade appear
                           factors. The CCCTB project aims to tackle the tax obstacles at issue.         interlinked. In particular, some systemic changes in German corporate
                                                                                                         taxation (such as participation exemption, thin cap, depreciations, inter-
                           Italian speaker: Vieri Ceriani, Tax Department, Banca d’Italia                est deduction, etc.) have deeply influenced Italian tax policy, while Italian
                           German speaker: Clemens Fuest, Oxford University                              rules on taxation of private investment income inspired, to a certain ex-            17.30
                                                                                                         tent, the new German 2009 “dual-income system” for PIT (final WHT).
13.30 – 14.30 Lunch        15.45 – 16.15      Coffee Break                                               The development of the two domestic legislations, as well as those of                Conclusions

                      05                                                                                                                                                                 06

                Giampaolo Arachi                                 Vieri Ceriani                                    Clemens Fuest                          Matthias Geurts
                Professor of Public Finance at the University    From September 2004 head of the Tax              Research Director and Professor of     He works for the Tax Group at Deutsche
                of Salento and research fellow at Econpubbli-    Department of Banca d’Italia. From 1993 to       Business Taxation, Oxford University   Bank AG in Frankfurt. Before joining Deut-
                ca – Università Bocconi. He is a graduate of     2001 economic advisor of various Italian         Centre for Business Taxation.          sche Bank, he worked for the Tax Depart-
                the Bocconi University in Milan. Subsequent-     Ministers of Finance. In 1976 he joined          Chairman of the Academic Advisory      ment of the German Banking Association.
                ly he received an M.Phil. in Economics from      Banca d’Italia at the Economic Research          Board of the German Federal Ministry   He qualified as a German Rechtsanwalt and
                the University of Oxford and a Ph.D. in Public   Department (public finance sector).              of Finance. His research areas are     is admitted to the Frankfurt bar. Matthias
                finance from the University of Pavia.            Delegate of Banca d’Italia in committees,        Tax Policy, International Taxation,    holds a PhD in law and is a teacher on
                His research interests include the effects of    working groups and commissions of the            Public Economics.                      the LLM program for the International Tax
                taxes on business decisions and on financial     ECB, Italian Ministry of Economy and                                                    Center Leiden, International Business &
                markets as well as local public finance and      Finance, public and private institutions and                                            Tax Law at the Frankfurt School of Finance
                fiscal federalism issues.                        international organizations. Author of vari-                                            & Management and IIFS University of
                                                                 ous publications, particularly in the field of                                          Hamburg.
                                                                 taxation, fiscal federalism and fiscal policy.
           07                                                                                                                         08
Silvia Giannini                                  Wolfgang Kessler                                David Pitaro                                  Giacomo Ricotti                              Alessandra Sanelli                                 Christoph Watrin
Full professor of Public Economics at the        Professor and Director of the Institute of      Currently responsible of the Tax Analysis     Senior tax analyst at the Tax Department     Currently senior tax analyst at the Tax Depart-    Professor and Director of the Institute of
University of Bologna. Since November            Business Taxation at the Albert-Ludwigs-        Division at the Tax Department of the         of the Banca d‘Italia. His main work and     ment of the Banca d‘Italia. Her main work and      Accounting and Taxation at the University
2008 she has chaired the Department of           University in Freiburg. He is a certified tax   Banca d‘Italia. His main work and research    research fields are: national, compara-      research fields are: tax treatment of financial    of Münster, Germany. He is specialized in
Economics. Her major research topics con-        adviser, director of the MBA „International     fields are: tax treatment of cross border     tive and international tax treatment of      products and investment vehicles; tax poli-        corporate taxation. He recently published
cern capital and business income taxation,       Taxation“ in Freiburg and of the „Zentrum       investments in financial assets; tax risk     corporation, banks, financial products and   cies affecting financial income and business       numerous articles on financial accounting
corporate tax design and reforms, internatio-    für Business and Law“. As a partner of          mitigation measures; tax policies affecting   investment vehicles; quantitative analysis   taxation; national and international initiatives   and tax topics which make use of empirical
nal taxation and tax co-ordination in the EU.    Ernst & Young he is in charge of the            business taxation; tax amnesties; tax ha-     for assessing the impact of new tax laws     aimed at countering tax evasion; international     research methods.
Among other activities, she served the Italian   national tax training.                          ven legislations, anti-avoidance provisions   on firms and banks. He was often advisor     tax issues. Previous experiences include:
Ministry of Finance in various Research                                                          and tax planning; international tax issues,   to the Head of Department and senior ma-     a one year fellowship (Oct. 2003 – Sept.
Groups and Commissions, and was member                                                           with a focus on double taxation treaties.     nagers members of the Expert Committees      2004) at the OECD Centre for Tax Policy and
of one of the two EC Panels of Independent                                                       Previous experiences include lectures in      appointed to draft new tax laws.             Administration (CTPA) in Paris.
Experts advising the Commission services                                                         tax seminars and publications.
for the 2001 Company Tax study.
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