What does an International Tax Lawyer do?

A lawyer who practices international tax law focuses on the tax structures of at least two countries. Many international tax lawyers work with multinational corporations, while others work with individuals who own land, work, or live primarily in another country. Almost every country in the world has its own taxation system, but no two are alike. The role of an international tax lawyer is to assist clients in reconciling conflicting tax obligations and, in most cases, to reduce overall tax liabilities.

The primary function of an international tax attorney is to provide advice and conduct analyses. The majority of the time, these attorneys are hired for their knowledge and ability to assist clients in effectively planning for taxes and anticipating foreign obligations. They are especially beneficial to businesses that do business internationally. Even the most skilled corporate accountants and domestic tax advisers may not be able to spot international tax pitfalls as well as an international lawyer.

A company’s international tax lawyer will typically begin determining the company’s tax liabilities. Businesses with international offices almost certainly fall under the tax laws of multiple jurisdictions. Even businesses with only one office that sell goods internationally, do business with consultants in other countries, or hire international employees may discover that they have both international and domestic tax obligations. The lawyer will lay out the company’s potential tax obligations and collaborate with accountants and other corporate personnel to ensure that all taxes are paid correctly and on time.

In most cases, a corporate international tax lawyer will also assist businesses in finding ways to reduce their tax liabilities. Lawyers will look for loopholes and exemptions, attempting to reduce taxable events while maximizing available deductions. Personal international tax lawyers do the same thing, but on a smaller scale, for private clients. Individuals who live or work abroad, or who own significant assets, particularly land, in another country, may find international tax lawyers indispensable.

Although some larger companies employ international tax attorneys full-time, the majority of corporate and personal international tax lawyers work in tax-focused law firms. Unless the company is particularly large or constantly expanding, it is more common to hire a few lawyers from private firms and then call on their services as needed. Businesses can get advice when they need it, and lawyers can handle multiple clients at the same time.

International tax lawyers do not all work for corporations or individuals. Some work in the development of international tax policy or in the enforcement of tax laws. In these fields, most lawyers work for national governments. Lawyers for the government investigate tax evasion and prosecute those who are suspected of breaking the law. They advise legislators and policymakers on how to create effective tax policies, what exemptions to include, and how severe the penalties for noncompliance should be.

In the field of international taxation, government lawyers and private firm lawyers do very different work, but their knowledge and training are the same. It is not unusual for an international tax lawyer to begin their career in government and then move into private practice, or vice versa. The field of international tax law is vast, with numerous career opportunities.