A dualist state ratifies a treaty giving foreign investors a right to tax relief. Parliament passes no law. An investor claims the relief in the national tax court, relying only on the treaty. What happens?
- In a dualist system a treaty made by the executive is not part of national law until legislation transforms it.
- No statute has been passed, so the court has no domestic rule to apply and the claim based on the treaty alone fails.
- On the international plane the state is still bound, and it cannot plead its own law to excuse non-performance (Article 27, Vienna Convention 1969).
Answer: The court refuses the claim, but the state remains internationally responsible to the other treaty party.