The globalization of the economic market has compelled the removal of trade barriers and clamored for the liberalization of capital transfer. In such an open market, several criteria play a key role for the decision where available capital will eventually be invested, and the most important of them is presumably the criteria of the tax burden in a given country. This gives rise to what is known as ‘tax competition’ – a phenomenon which ultimately need not be beneficial, in that lowering taxes of course also curbs the flow of revenues into public coffers; in countries whose treasuries run up primarily mandatory expenses, this will lead to growing deficits that with maximum effort can at best be kept in check, but never be eradicated altogether. Naturally, the dominant concern in the area of foreign investment is to prevent double taxation. This paper attempts a review of the issues in connection with the Czech Republic’s approach in this regard.
public interest
economic value
exporpriation
international taxation
double taxation
OECD Model Conventions
Milan Bakeš is a professor of financial law at the Faculty of Law, Charles University, Prague, and Visiting Professor at UCLA, Los Angeles. He has published numerous monographs and more than 150 expert papers in his field. His most important monographs include Theoretical Issues of Financial Law [Teoretické otázky finančního práva] (Charles University, Prague, 1979) and Taxation and Investment (IBFD Amsterdam). In addition to his teaching and academic activities, he also practises as a lawyer specializing in financial law.
e-mail: bakes@prf.cuni.cz
Zdeněk Karfík is a lawyer, an arbitrator at the Arbitration Court attached to the Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic, and a member of the Appellate Committee of the Minister of Finance of the Czech Republic; he is a long-standing external associate of the Faculty of Law, Charles University, Prague. In his legal practice, he specializes in financial, civil and commercial law. He has published numerous articles in this field.
e-mail: karfik@volny.cz
Marie Karfíková is a professor of financial law at the Faculty of Law, Charles University, Prague. In her academic work, she specializes in tax and insurance law. She regularly publishes articles on this subject in professional journals. She has co-authored numerous textbooks and monographs. Between 1999 and 2006,
she was a member of the Legislative Council of the Czech Republic; she has been a member of the Appellate Committee of the Czech National Bank since 2006 and a member of the Presidium of the Public Audit Oversight Council since 2009. She is also an arbitrator at the Arbitration Court attached to the Economic Chamber of the Czech Republic and the Agricultural Chamber of the Czech Republic.
e-mail: karfikova@prf.cuni.cz
