Prologue

Interesting commentary from @BrooklynTaxProf where he notes that the rules of international tax date back to the League of Nations – 100 years ago https://t.co/k0rK7AXPfe

— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) June 21, 2021

The rules of taxation should follow changes in society. The ordering of society should NOT be hampered by the rules of taxation!

As the world has become more digital, companies can carry on business from any location. Individuals have become more mobile. Multiple citizenships, factual residences and legal tax residencies are not unusual. It has become clear that the rules of international tax as reflected in tax treaties (as they apply to both corporations and individuals) are in need of reform.

The purpose of this post is to identify two specific areas where US tax treaties are rooted in the world as it was one hundred years ago and NOT as it is today.

First: The “Permanent Establishment” clause found in US and OECD tax treaties

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