No taxation without investment protection: the power to tax in investment arbitration

• Autores: Doig Gonzales-Otoya, Bruno, Masnjak Marín, Daniel
• Formato: artículo
• Fecha de Publicación: 2019
• Institución: Pontificia Universidad Católica del Perú
• Repositorio: Revistas - Pontificia Universidad Católica del Perú
• Lenguaje: español
• OAI Identifier: oai:revistaspuc:article/22622
• Enlace del recurso: http://revistas.pucp.edu.pe/index.php/themis/article/view/22622
• Nivel de acceso: acceso abierto
• Materia: investment arbitration; Power to Tax; investment protection treaties; vestment contracts; arbitraje de inversiones; potestad tributaria; tratados sobre protección de inversiones; contratos de inversión

In order to attract foreign investors to its territory, States tend to enter into international treaties and investment contracts in which they offer guarantees of a due exercise of government power. In case of breach, the investor may sue the State in an international arbitration proceeding and obtain a compensation for the damages caused. Therefore, recent judicial rulings aim to achieve a balance between guarantees and regulatory rights, which both investors and States should grasp. This article explains how arbitration works as a mean to solve tax related disputes between investors and States. Then, it presents the application of guarantees in arbitration, such as tax stability clauses or protection standards regarding expropriation and fair and equitable treatment.