Finding the Meaning of Nexus for Taxes – Past, Present, and Future

Nexus is a term commonly used in international law to determine whether there is sufficient connection between a person, property, or an activity with a State so that the State has prescriptive jurisdiction to legislate. The goal of the national reports and the general report was to assess what nexus means, as well as its rationale, in the context of the main tax obligations in the reviewed States. In addition to the general and national reports, an international law expert - Professor Cedric Ryngaert – wrote an international law report. General conclusions falling into five categories were derived from this unprecedented comparative analysis, including that evidence of State practice points to there being a limit on prescriptive State jurisdiction in tax matters in countries where international law is constitutionally entrenched.