Brics and Developing Countries Legal Experts Forum: Emergence of International Coordination in Economic and tax Law

• Author: D. Vinnitskiy
• Position: BRICS Law Institute, Ural State Law University (Yekaterinburg, Russia)
• Pages: 140-168

BRICS LAW JOURNAL Volume V (2018) Issue 1

CONFERENCE REVIEW NOTES

BRICS anD DEVELoPInG CounTRIES LEGaL EXPERTS FoRuM:

EMERGEnCE oF InTERnaTIonaL CooRDInaTIon In EConoMIC

anD TaX Law

DANIL VINNITSKIY,

BRICS Law Institute, Ural State Law University

(Yekaterinburg, Russia)

DOI: 10.21684/2412-2343-2017-5-1-140-168

Recommended citation: Danil Vinnitskiy, BRICS and Developing Countries Legal

Experts Forum: Emergence of International Coordination in Economic and Tax Law, 5(1)

BRICS Law Journal 140–168 (2018).

Introduction

The Second Coordination Committee Meeting of the BRICS Law Institute and the

BRICS and Developing Countries Legal Experts Forum were held on 2–10 June 2017

in Yekaterinburg, Russia. In the framework of the forum the experts elaborated and

signed a declaration (summary of the discussion) in order to analyse the role of the

BRICS and developing countries in international economic relations and to outline

possible directions for taking concrete measures in areas of joint interest in relation

to tax matters, including the settlement of cross-border tax disputes, and information

exchange, education, cooperation and research on legal issues connected with

capacity building in such areas. Besides, group of experts drafted an aspirational

model draft conventions, which suggest innovative and ambitious approaches in

terms of tax regimes and cross-border tax dispute resolutions.

Legal expert discussion took into account the analysis of the WTO statistics data

on trade between the BRICS countries and the rest of the world which indicates

that:

DANIL VINNITSKIY 141

– the share of the BRICS countries in the world exports ranged from 17% to 19%

of the world indicators for the period of 2012 to 2016 (Attachment – Fig. 1);

– the share of the BRICS countries in the world imports of goods ranged from

16% to 15% over the same period (Attachment – Fig. 2).

Separately, the BRICS countries showed dierent indicators:

– the largest imports of agricultural goods were in China, the least imports – in

South Africa;

– the highest export of agricultural products – in Brazil and China, the smallest –

in South Africa (Attachment – Fig. 3);

– the highest export of fuel and mining products was in Russia, the highest

import was in China (Attachment – Fig. 4);

– the highest imports and expor ts of manufacture products were in China, the

least exports and imports – in South Africa (Attachment – Fig. 5).

Based on recent studies conducted by the participants of the Coordinating

Committee Meeting of the BRICS Law Institute and Forum, the experts came to the

need to identify the following steps in the relevant areas that could provide some

contribution to the achievement of the identied direc tions noted above in this

document:

a) Development of an eective system for settlement of cross-border tax disputes,

including mediation/ arbitration with representatives of the legal experts nominated

by the BRICS, which suggests innovative approaches that are in harmony with the

constitutional and legal frameworks of BRICS countries and can furnish a basis of

change and innovation to evolve such frameworks;

b) Simplication of the mechanisms for eliminating of international double

taxation and tax administration in the BRICS with respect to certain types of income

on a multilateral basis;

c) Possible future development of common cross-border tax rules concerning

further types of business prots;

d) Coordination of joint actions and eorts of the BRICS states in the eld of

technical capacity building and education in relation to the matters falling within

the scope of this declaration.

1. Development of an Eective System for Settlement

of Cross-Border Tax Disputes in BRICS Countries

1.1. It is envisaged that the BRICS countries develop an appropriate common

standard for settling trade and investment disputes, which must be consistent

with the corresponding tax dispute resolutions mechanisms and may apply in their

bilateral relations with the due amendments. This standard can also apply to relations

of BRICS members with third countries.