Taxation of Foreign Investments under International Law: Article 21 of the Energy Charter Treaty in Context
Article from: OGEL 4 (2015), in Taxation
Taxation of foreign investments is a key regulatory exercise in every sovereign State. Inasmuch as it is not "designed to effect a dispossession outside the normative constraints and practices of the taxing powers", the right to tax foreign investments is also a legitimate regulatory exercise. Investment treaty arbitration (ITA) tribunals often examine whether taxation measures by host States are discriminatory, confiscatory and/or tantamount to expropriation in the light of applicable standards under a vast network of international investment agreements (IIAs). Drawing on its ...