A dominant theme of international taxation over the past 15 years has been that of cooperation and consensus—from the BEPS Project to the new Multilateral Instrument to the new BEPS Inclusive Framework. Regardless of one’s assessment of nations’ true commitments to such cooperation and consensus, it is clear that notable changes in the framework of international tax engagement are afoot.
Yet, countries themselves remain very different in terms of the wealth, GDP, natural resources, tax revenues, commercial base, infrastructure, technological capacity, and financial systems. It is not obvious that cooperation and consensus are uniformly in countries’ interests, particularly in light of who is drafting the agenda. Most pointedly, it is reasonable to ask why non-OECD, non-G20 countries would be willing to commit to global tax cooperation.
By now, you may have seen one or more videos on the Break Into Tax YouTube channel (www.BreakIntoTax.com) that I started earlier this year with Allison Christians (McGill). We’ve created overview videos on tax policy, tax procedure, an array of income tax topics, legal writing, and more. We’ve done “Tax Papers Unlocked” micro-workshops on current tax scholarship. We’ve also released some #WhyTakeTax videos for students featuring a lot of tax profs, plus some tax humor videos. All Break Into Tax videos are intended to be entertaining, and most also are designed to be informative!
After about 30 videos, we wrapped up what we term “season 1.” It’s now time for season 2! We released a new intro video today, which you can find here. As mentioned there, I’ll be running this season. I’ve got some fun videos coming up, including more on income tax, more tax humor, a “crossover episode,” and something for folks interested in academia. Subscribe to the channel and turn on notifications if you don’t want to miss these as they come out!
If you’re a professor, I hope you’ll assign some of the Break Into Tax videos in lieu of a reading, for review, or as an optional resource! If you’re a student, I hope you find the explanations and illustrations helpful. Join us as you break into tax!
Just as summer is in full swing, the VIRTEU Project is back with a close look at a less than sunny side of economic life — the role that professionals (read lawyers, accountants and auditors) can play in enabling economic crime. This coming Wednesday July 21, 2021 (starting at 10:15am ET) join us in a three-panel zoom symposium that investigates how and why professionals may play this enabling role, and what responses and solutions we might consider. We will look carefully at real life case studies and talk with experts from various sectors as we explore this ongoing issue.
Yesterday my neighbor texted me to mention that three pieces of my mail had been left in his mailbox; he dropped them off in front of my door. Two were just standard junk mail but one is potentially important: a letter from the Department of the Treasury.
Perhaps you also got this letter: it has some important information about the way the the child tax credit now works. In short, the American Rescue Plan, a law signed in March, makes a number of significant changes to the child tax credit.
Two of those changes are particularly notable. First, it increases the amount of the credit to $3,000 for most children and $3,600 for children five and younger.
Second, it makes allows the IRS to make advance payments of the child tax credit. Essentially, unless parents choose otherwise, starting in July the will receive monthly payments of $250 or $300 per child (depending on the child’s age).
Third, the credit is fully refundable. Even if a parent doesn’t have enough income to owe taxes, they will receive the full amount of the child tax credit.
Finally, the age limit for the child tax credit has been increased from 16 to 17. (Note that currently these changes are all temporary–they only apply to 2021, though the may be extended as some point.)
As I blogged previously, Dr. Leopoldo Parada from the University of Leeds School of Law and I (with the support of the Indiana University Maurer School of Law) will co-host the Indiana/Leeds Summer Tax Workshop Series again this summer. It will meet online via Zoom on Fridays from 11:30am-1pm Eastern Daylight Time (4:30-6pm British Summer Time). Last summer’s series went really well. If you are interested in cutting-edge tax issues, we hope you will consider attending!
We received numerous excellent submissions in response to this year’s Call for Papers. As stated there, we prioritized tax topics that would be of interest to scholars in multiple countries. Here is the list of speakers and the papers they’ll be presenting:
Like last year, the workshop will take place on Zoom, as a regular Zoom session. We will introduce the speaker, who will have about 20 minutes for scripted remarks, and the remainder of the time will be allocated to questions and discussion. Approximately a week in advance of each talk, we expect to share the draft paper online on the following website: law.indiana.edu/summer-tax.
The Indiana/Leeds Summer Tax Workshop Series is open to attendance by interested faculty, tax experts, and students. This summer, you will need to register in order to obtain the Zoom link and the password for any password-protected papers. Please register at TinyURL.com/INLeeds2021.
Students and other attendees who would like to list on their c.v. that they “participated in the 2021 Indiana/Leeds Summer Tax Workshop Series” should do the following:
Attend at least 5 of the scheduled sessions.
Type in the “chat” window of the Zoom session of each session you attend a brief introduction containing your name, school or other institution, location, and degree candidacy or job title.
We encourage all attendees to introduce themselves in the chat window, as well.
The Call for Papers opens today and will close on May 14, 2021 at midnight British Summer Time (7pm Eastern Daylight Time). If you are interested in presenting in the Workshop, please send the following before then to both email@example.com and L.Parada@leeds.ac.uk, with “Indiana/Leeds Workshop submission” in the subject line of your email:
Your name, title, and affiliation.
The paper title and an abstract of no more than 1,000 words.
Whether or not you already have a draft of the paper. (We plan to circulate a draft of each paper—a minimum of 10 pages—a week in advance of each talk.)
Whether or not the paper has been accepted for publication, and, if so, when it is expected to be published.
A list of any Fridays between May 28 and July 16 that you would not be available to present, or a statement that any Friday in that date range would work for you.
In selecting papers, preference will be given to tax topics of broad, general interest. These can involve international or domestic tax issues, but a preference will be given to topics that would be of interest to scholars in more than one country. Like last summer, we expect an international group of attendees. Note also that speakers will be strongly encouraged to limit their scripted remarks to 20 minutes, to allow ample time for questions and discussion.
Videos of all but one of last summer’s talks are online at http://www.tinyurl.com/indianaleeds. These recordings include only the introductory remarks and the scripted portion of the speaker’s presentation. We plan to take the same approach this summer for those speakers who grant permission.
It started on Twitter with the following tweet from Prof. Musgrave:
I replied with what became my most popular tweet to date. (The bar was not high.)
As Twitter replied with funny comments, the idea quickly became fodder for Break Into Tax, the YouTube channel that Allison Christians and I launched last month. So, here it is: TAX RETURN OF THE JEDI: UNOFFICIAL PARODY TRAILER. Don’t miss the Circular 230 disclaimer at the end!
This March 12th discussion will examine corruption broadly understood to encompass not only the most direct forms of corruption (e.g. bribes) but more indirect forms (including implicit deals with officials), on to questions of undue influence, conflict of interest and the power of lobbying. Attention will be given to not only government actors, but also structural and institutional features that impact corruption and avoidance of taxation, including the role of large corporations, wealth, and power bases. For more information on the Roundtable, see below. To join us for the discussion, please register here.
Recently, my resident D.C. comics fan, Nickolas Cole, asked me to watch with him Episode 3 of the animated Harley Quinn TV series, “So, You Need A Crew?”. (Warning: this show is not safe for work.) He thought I would enjoy the premise of the episode, which is that female supervillains face a glass ceiling. (You can’t make this stuff up. Well, actually, I suppose you can and someone did!)
I’m not much of a fan of cartoons but I thought the quirky humor was pretty well done. So, there I am watching Harley Quinn struggle to recruit a crew to work for her when all of a sudden, there’s the U.S. Master Tax Guide! And it has the voice of Wanda Sykes. The writers didn’t miss a trick. The intro to the tax stuff features the tax-preparation boutique “TAXES 4 FREE**NOT 4 FREE,” seemingly ripped from the headlines. (That appears at 1:17 here, but if you don’t mind cursing cartoon characters, you may enjoy the whole three-minute segment, which captures a lot of the premise of the episode.)
We do not yet live in a world in which taxpayer compliance can simply be assumed. Instead, we must rely on the interplay of reporting requirements, internal and external auditing, and ultimately whistleblowing, to help ensure compliance with the tax system. How do they fit together? What can we expect from reporting and auditing? When do they breakdown, and why? How does whistleblowing–both the actual cases and the “threat” of whistleblowing–shape law, taxpayer behavior, and society’s understanding of compliance. And when does this tax noncompliance intersect with government corruption and fraud? What recommendations and options might we consider for the future?
The 3rd Roundtable, on “Whistleblowing, Reporting and Auditing in the area of taxation,” will be held Friday February 26, 2021 at 5:30-7:00pm GMT (12:30-2:00pm EST). For more information on the panel, see below. To join us, visit the registration link here.
The Tax Valentines poems on Twitter are always a highlight of the winter for me. Tax folks can be very creative weaving together romance and tax concepts! This year, there seemed to be fewer overall, but there still are plenty to be found if you search #TaxValentines on Twitter. Prof. Kathleen DeLaney Thomas even shared Tax Valentines her students wrote as a fundraiser for public interest grants for UNC Law students!
Here are a couple of new ones I didn’t get a chance to post on Twitter:
These three frames for regulating (business) behavior are regularly examined and debated in the corporate and regulatory literature, but their application to the tax system remains under explored. If you are interested in thinking more about the tax side, join us this Friday February 12, 2021 at 5:30-7pm GMT (12:30-2:00pm EST). For more information on the panel, see below. To join, visit the registration link here.
We’ve started a new YouTube series we wanted to share with our readers! It’s called “Break Into Tax” (BiT) and can be found at tinyurl.com/BreakIntoTax.
The idea behind BiT is that we’ll discuss and break down tax-related concepts, broadly defined. This includes issues that may be of interest to law students and others newer to tax or to particular issues. The topics we plan to cover include substantive tax law concepts, tax policy concerns, the study of taxation, and the pursuit of tax as a career. We also welcome suggestions for topics in the comments on our videos!
We come at the issues from the perspective of tax law professors in the U.S. and Canada with cross-border interests. The BiT series is not at all designed to be of interest only to people from these two countries. We expect to focus on concepts that are foundational enough or general enough to be of broad interest.
Our introduction video, located here, is a good place to start. It shares more about us and the BiT channel. Our first playlist covers Tax Policy Colloquia: what are they, how to ask a good question in a tax workshop, and tips for students writing reaction papers.
It is no surprise to those working in the tax field, whether in government, private practice, academia or the nonprofit sector, that not all taxpayer mistakes are innocent. Some taxpayers affirmatively engage in fraud, and sometimes that fraud is wrapped up with corruption. The high profile spate of tax leaks beginning in 2008 helped put a more public face on many aspects of an old problem.
As part of an effort to better respond to tax crimes and corruption, the EU has funded an interdisciplinary and comparative research legal research project — VIRTEU [Vat fraud: Interdisciplinary Research on Tax crimes in the European Union]. This project is aimed at exploring connections between tax fraud and corruption. Focused in part on VAT fraud, the relevant issues and the kinds of questions that must be asked are universal across the tax system.
VIRTEU, for which I am a special advisor, is hosting a Roundtable Discussion Series this spring that brings together experts from academic institutions, nongovernmental organizations, and the private sector to engage in topical discussions around the general problem of tax fraud and corruption. Along with the the VIRTEU project’s Principal Investigator Dr. Costantino Grasso and Co-Investigator Dr. Lorenzo Pasculli, I will be organizing and hosting the series, which is also sponsored by Boston College Law School, Coventry University Research Centre on Financial and Corporate Integrity, and OLAF (the European Anti-Fraud Office).
Nick, who’s been a Superman fan since childhood, got me the Oct. 1961 issue of the Superman comic for Christmas. It’s got a story in it billed as “Superman Owes a Billion Dollars” in taxes! Here’s the splash panel:
The basic premise is that a new Revenue Agent “at the Internal Revenue Bureau in Metropolis,” Rupert Brand,* discovers “no record that Superman has ever paid taxes!” (In case you’re wondering, nope, the IRS was not called the “Internal Revenue Bureau” back then. In 1953, it changed its name from the “Bureau of Internal Revenue” to the “Internal Revenue Service.” Perhaps a clue that not to rely on any of the tax statements in the story!)
Brand figures out the quickest way to reach Superman about this apparent delinquency, and explains that even the President of the United States pays taxes (cf.these blog posts), and so must Superman!
Why does Superman owe tax? Well, the story explains that “each year, Superman captures countless criminals, collecting a fortune in reward money!” And not just that, “whenever he digs up buried treasure” [treasure trove, anyone?] “or squeezes coal into diamonds, he earns more untold millions! All that wealth is income!”