Anti-Abuse Rules in International Tax Law and their Interactions

1. Introduction

Exit taxation has become an increasingly important element of contemporary international tax policy largely driven by the mobility of businesses, capital, and individuals across borders. As jurisdictions strive to protect their domestic tax bases, exit taxes, often structured as taxes on unrealized gains, have emerged as a mechanism for capturing latent capital appreciation before a taxpayer relocates. However, imposing exit taxes raises a series of complex legal and practical questions, particularly when these taxes intersect with bilateral double taxation treaties (DTTs) and supranational frameworks such as European Union (EU) law.

The research question addressed in this thesis is:

This research question highlights two core issues. First, it examines whether exit taxes align with the distributive and anti-avoidance provisions of bilateral tax treaties. Second, it explores whether states can lawfully invoke treaty-based or domestic anti-avoidance measures to uphold the im...