Tax Treaty Case Law around the Globe 2021

S. 254I. Introduction

Several human rights treaties and declarations confirm that discrimination must be based on acceptable criteria. Accordingly, no legal system shall accept, for example, racial and sexual discrimination (at least when heavier treatment is concerned). This is also true for discrimination among taxpayers.

However, some criteria may be adopted by domestic tax legislations which shall be deemed to be in accordance with the equality principle. For instance, among the constitutional principles governing the Brazilian economic order, the constitution enumerates as valid criteria: the reduction of regional and social inequality; the protection of the environment; and the granting of beneficial treatment to small-sized companies (Article 170, items VI, VII, and IX of the Brazilian Constitution). Therefore, the adoption of different tax treatments (either heavier or lighter) to certain groups of objects or persons might be justified on such principles. If, e.g. beneficial tax treatment is conferred by the Federal Union to companies upon the condition that they move their activities to low-income regions of the Brazilian territory, such treatment is justified under Brazilian cons...