Tax law

"Tax code" redirects here. For the alphanumeric code used in the UK, see Tax code (PAYE).

The Internal Revenue Code is the primary statutory basis of federal tax law in the United States. The Code of Federal Regulations is the Treasury Department's regulatory interpretation of the federal tax laws passed by Congress, which carry the weight of law if the interpretation is reasonable. Tax treaties and case law in U.S. Tax Court and other federal courts constitute the remainder of tax law in the United States.

Tax law or revenue law is an area of legal study in which public or sanctioned authorities, such as federal, state and municipal governments (as in the case of the US) use a body of rules and procedures (laws) to assess and collect taxes in a legal context. The rates and merits of the various taxes imposed by the authorities are attained via the political process inherent in these bodies of power, and not directly attributable to the actual domain of tax law itself.

Tax law is part of public law. It covers the application of existing tax laws on individuals, entities and corporations, in areas where tax revenue is derived or levied, e.g. income tax, estate tax, business tax, employment/payroll tax, property tax, gift tax and exports/imports tax.

Major issues

Primary taxation issues differ among various countries, although similarities might exist.

Developed Countries

• Taxes can fail to raise sufficient revenue to cover government spending.
• Taxes are generally complex and can be viewed as benefitting high income earners more than they do to lower income earners (in the payment of relatively less tax).
• Tax evasion and avoidance occur, leading to reduced government revenue.
• Taxes can produce poor desired outcomes (lower productivity and provide less incentive for businesses to grow).
• Taxes can curb economic growth through inefficiency, e.g. corporate taxes/hurdles that could impede smaller entities to grow.

• Taxation can be viewed as disproportionate, as in the case of the taxation of capital gains versus labor income, in which investors generally pay less tax on investment income vs workers who proportionally pay more on their wages.
• Taxes can remain questionable in achieving desired goals, such the Ecotax which is primarily intended to promote environmentally friendly activities via economic incentives.

Developing Countries

• Taxes in developing economies can be hard to standardize since most workers work in small, and often unregulated enterprises.
• Tax systems without sound fundamental establishments and competent administration to run and manage them can be burdensome and inefficient.
• Tax systems without reliable data are hard to regulate and change.
• Tax systems tend to have the rich bear a heavier burden of taxation.

Education

In law schools, "tax law" is a sub-discipline and area of specialist study. U.S. law schools require 30 semester credit hours of required courses, 60 hours or more of electives and a combined total of at least 90 credit hours completed. Law students must choose available courses on which to focus before graduation with the J.D. degree in the United States. This freedom allows law students to take many tax courses such as federal taxation, estate and gift tax, and estates and successions before completing the Juris Doctor and taking the bar exam in a particular U.S. state.

Master of Laws (LL.M) programs are offered in Canada, United States, United Kingdom, Australia, Netherlands and an increasing number of countries. Many of these programs focus on domestic and international taxation. In the United States, most LL.M. programs require that the candidate be a graduate of an American Bar Association-accredited law school. In other countries a graduate law degree is sufficient for admission to LL.M. in Taxation law programs.

The Master of Laws (LL.M) program is an advanced legal study.

General Requirements

• J.D. (Juris Doctor) or First degree in law.
• An English proficiency test score for students with a native language besides English.

The Juris Doctor (JD) program is offered by only a number of countries. These include, United States, Australia, Canada, Hong Kong, Japan, Philippines, Singapore and the United Kingdom. The courses vary in duration of years, curriculum and whether or not further training is required, depending on which country the program is in.

General Requirements

• A bachelor's degree.
• Law School Admission Test (LSAT) - Required for law school admission in United States, Canada and a growing number of countries.
• Credit requirements.

A list of tax faculty ranked by publication downloads is maintained by Paul Caron at TaxProf Blog.

Taxation by jurisdiction

Africa

• Taxation in South Africa
• Taxation in Tanzania

Americas

• Taxation in Argentina
• Taxation in Canada
• Taxation in Colombia
• Taxation in the British Virgin Islands
• Taxation in Peru
• Taxation in the United States

Asia

• Taxation in China(*Taxation in the People's Republic of China)
• Taxation in India
• Taxation in Iran
• Taxation in the Palestinian territories

Europe

• Taxation in the European Union
• Taxation in Azerbaijan
• Taxation in Bulgaria
• Taxation in France
• Taxation in Germany
• Taxation in the Republic of Ireland
• Taxation in the Netherlands
• Taxation in Poland
• Taxation in Portugal
• Taxation in Russia
• Taxes in Spain
• Taxation in the United Kingdom

Oceania

• Taxation in Australia
• Taxation in New Zealand

See also

• Corporate law
• Corporate tax