Social Sciences in China (Chinese Edition)

No.6, 2013

Tax Sovereignty and the Interpretation Criteria of Tax Convention

(Abstract)

Liu Yongwei

State sovereignty is closely linked with international law. The development level of international law depends on and reflects the extent to which state sovereignty is limited. Tax sovereignty has a distinctive characteristic of absoluteness. No general international tax law exists to limit tax sovereignty. The tax convention does not create legal obligations in international law for its state parties, nor does it pose a limit to tax sovereignty. The tax convention is not governed by international law or by the Vienna Convention on the Law of Treaties, and the court is under no obligations to interpret the tax convention in terms of Vienna Convention. The absoluteness of tax sovereignty is the true cause for the adoption of domestic law for interpretation in tax authorities as specified by tax convention, and the fundamental reason for the adoption of domestic law as a methodology in courts.