The Benefits of Tax CompetitionThe Benefits of Tax Competition



Beginning with a primer on international taxation, this IEA monograph shows why the arguments used by governments to prevent tax competition are fallacious.

Author: Richard Teather

Publisher: Inst of Economic Affairs

ISBN: UCSC:32106018411238

Category:

Page: 167

View: 849

Beginning with a primer on international taxation, this IEA monograph shows why the arguments used by governments to prevent tax competition are fallacious. It also outlines the threats to tax competition from the EU and OECD, and proposes ways in which the UK government should respond to those threats.

Globalization Tax Competition and the Future of Tax SystemsGlobalization Tax Competition and the Future of Tax Systems



This paper discusses the implications for tax systems of globalization of capital markets and of economies.

Author: Mr.Vito Tanzi

Publisher: International Monetary Fund

ISBN: 9781451928280

Category:

Page: 21

View: 301

This paper discusses the implications for tax systems of globalization of capital markets and of economies. It shows the extent to which particular taxes are affected by the globalization process. It speculates on future developments in this area and on tax competition.

Harmful Tax Competition An Emerging Global IssueHarmful Tax Competition An Emerging Global Issue



Tax competition in the form of harmful tax practices can distort trade and investment patterns, erode national tax bases and shift part of the tax burden onto less mobile tax bases.

Author: OECD

Publisher: OECD Publishing

ISBN: 9789264162945

Category:

Page: 84

View: 110

Tax competition in the form of harmful tax practices can distort trade and investment patterns, erode national tax bases and shift part of the tax burden onto less mobile tax bases. The Report emphasises that governments must intensify their cooperative actions to curb harmful tax practices.

The Impact of Profit Shifting on Economic Activity and Tax CompetitionThe Impact of Profit Shifting on Economic Activity and Tax Competition



A growing empirical literature has documented significant profit shifting activities by multinationals.

Author: Mr.Alexander D Klemm

Publisher: International Monetary Fund

ISBN: 9781513519890

Category:

Page: 18

View: 852

A growing empirical literature has documented significant profit shifting activities by multinationals. This paper looks at the impact of such profit shifting on real activity and tax competition. Real activity can be affected as profit shifting changes—and theoretically most likely reduces—the cost of capital. Tax competition, even over real capital, is affected, because a permissive attitude toward profit shifting can be seen as a selective tax reduction for multinationals. Tightening profit shifting rules in turn can affect tax competition through the main rate. This paper discusses these issues theoretically and with the help of a simulation to assess the impact of profit-shifting on investment, revenues, and government behavior. Using the theoretical framework, it also provides a brief overview of the related empirical literature.

Tax Competition and Trade ProtectionTax Competition and Trade Protection



This paper reconsiders the question of whether tax competition for mobile capital leads to tax rates on capital that are too low or too high from the combined viewpoint of the competing regions (or countries in an economic union).

Author: Eckhard Janeba

Publisher:

ISBN: UCSD:31822028497576

Category:

Page: 23

View: 477

This paper reconsiders the question of whether tax competition for mobile capital leads to tax rates on capital that are too low or too high from the combined viewpoint of the competing regions (or countries in an economic union). In contrast to standard models of tax competition, both commodity trade and capital mobility is allowed to occur between the competing regions and the rest of the world. A key result of the analysis is that whether the capital taxes are too low or high depends on the degree of external trade protection. When the country's central government is free to set the tariff, tax competition leads to inefficiently low tax rates. But in the absence of a tariff, tax rates can be too high. In particular, regions may choose to subsidize capital in equilibrium as a means of inducing favorable terms-of-trade effects, but the subsidy (i.e., a negative tax) will then be too low because an increase in a single region's subsidy benefits other regions by reducing their relative quantities of subsidized capital. These results are discussed in the context of the European Union's Single Market, where non-EU firms have responded to the 'Fortress of Europe' by increasing foreign direct investment.



The author examines the effect of different systems and rates of business taxation on progress towards free trade.

Author:

Publisher:

ISBN: OCLC:313284035

Category:

Page: 199

View: 756

Comparative Fiscal FederalismComparative Fiscal Federalism



Much of that literature suffers from a fatal flaw; it assumes that the tax in question
is not a benefit tax. One of the benefits of tax competition is that it creates
pressures to impose only taxes that do reflect benefits, in which case choices are
not ...

Author: Reuven S. Avi-Yonah

Publisher: Kluwer Law International B.V.

ISBN: 9789041159809

Category:

Page: 370

View: 123

Judicial review of taxation in the world’s two most economically significant multistate systems, the European Union and the United States, has exposed a remarkable divergence. Although there are important differences between the competences of the two tribunals, the fact remains that the European Court of Justice has been much more aggressive in striking down Member State income tax rules than has the United States Supreme Court in comparable cases. This book – the only full-scale comparative analysis of the tax jurisprudence of the two judicial systems, now in an updated second edition – asks: Why this divergence? And what can the two tribunals learn from each other about adjudicating issues that arise from the interaction of tax regimes in the context of a single market? Among the contributory issues and topics covered are the following: – conceptions of sovereignty and federalism; – discrimination in direct tax matters as an obstacle to a meaningful single market; – allocation of taxation competences; – nonresident versus resident taxation; – double burdens on cross-border economic activity; – retroactive recovery of unlawful state aid in the European Union; – role of competition law; – the revenue interests of states; – levels of corporate taxation; – the OECD Model’s nondiscrimination rules; and – the preliminary interpretation mechanism of the Court of Justice. An insightful and penetrating analysis of a topic of material importance to governments, tax policy makers, and tax lawyers on both sides of the Atlantic, this book clearly explains how the Supreme Court and the Court of Justice continue to struggle with the conflict between generally accepted tax principles and the effective prevention of discriminatory treatment of taxpayers. All tax professionals concerned with the interaction of sovereignty, tax assignment, legislation, and judicial decisions in tax law will benefit greatly from its clearsighted and comprehensive treatment, as well as from its perspectives on the practical implications of each tribunal’s decision making.

State Aid and Tax LawState Aid and Tax Law



This book provides clear guidance on what constitutes State Aid in the area of tax law.

Author: Alexander Rust

Publisher: Kluwer Law International B.V.

ISBN: 9789041146250

Category:

Page: 232

View: 556

This book provides clear guidance on what constitutes State Aid in the area of tax law. It clearly explains the situations in which beneficial tax provisions for the taxpayer – e.g., lower tax rates for certain industries or for certain economic zones, advantageous depreciation rules, or exemptions – can be declared void by the European Commission. The difficult controlling concept of ‘selectivity’ of an aid is dealt with extensively. Drawing on familiarity with the practice of the Commission, as well as the jurisprudence of the General Court and of the Court of Justice, thirteen knowledgeable contributors present valuable arguments in case the Commission requires the repayment of advantages received. Among the topics and issues covered are the following: how unregulated tax incentive competition between States leads to a ‘win’ by one State and a ‘loss’ by another; the legal uncertainty attached to the Commission’s decision following notification of a proposed tax incentive; the role of the Commission’s Code of Conduct; calculating the amount of recovery of illegal State Aid; application of State Aid rules in the area of indirect taxation (e.g., VAT and excise duties); investment fund regimes; subnational regional aid; ‘patent box’ regimes; foreign source income; and taxpayers’ exclusion from infringement proceedings and subsequent appeals. Complete with case studies and analyses of the latest case law on selectivity, this invaluable resource will be welcomed by practitioners who, although they may be well-versed in tax law, are sure to benefit greatly from the authors’ expert guidance on State Aid provisions and the rules on harmful tax competition.

Poverty or Prosperity Poverty or Prosperity



The authors in this book argue these problems can be surmounted, if the tax system reflects supply and demand, as well as responding to social, cultural and political pressures.

Author: Sheila Lawlor

Publisher: Andrews UK Limited

ISBN: 9781845408718

Category:

Page: 123

View: 453

A collection of essays by leading economists on how different tax regimes affect the overall prosperity of a country. The UK faces shrinking tax revenues and additional public spending demands, while taxpayers, jobs and investment can move to lower cost economies. The authors in this book argue these problems can be surmounted, if the tax system reflects supply and demand, as well as responding to social, cultural and political pressures. Taxes that penalise incentive and hold back economic growth should be avoided, as should those which deter saving and investment, and those which are too complex. Within this framework, it is possible to respond to added pressures to expand public services or for more spending on benefits.

Fiscal and Migration CompetitionFiscal and Migration Competition



The paper models the host country stylistically as a member of the core of an economic union (i.e., a core EU welfare state member state), with tax-financed benefits which is able to control the volume and the skill-composition of migration ...

Author: Assaf Razin

Publisher:

ISBN: OCLC:666640261

Category:

Page: 14

View: 641

It is often argued that tax competition may lead to a "race to the bottom". Such a race may hold indeed in the case of the pure case of factor mobility (such as capital mobility). However, in this paper we emphasize the unique feature of labor migration, that may nullify the"race to the bottom" hypothesis. Labor migration is governed by net-of-tax factor rewards and the benefits that the welfare state provides. Tax rates are determined in a political economy set up which takes into account the effect of taxes and migration on factor rewards and the fiscal burden imposed by migration on the decisive voter. The paper models the host country stylistically as a member of the core of an economic union (i.e., a core EU welfare state member state), with tax financed benefits which is able to control the volume and the skill-composition of migration. The source country is modeled as an accession country to an economic union (i.e., through the EU enlargement treaty), with its own welfare (tax-benefit) policy. We let these two countries engage in fiscal competition. Using numerical simulations we examine how the migration plocoes are affected by whether the skilled or the unskilled are in power. We also analyze differences for tax policies between free and controlled migration, and the role of productivity gap.

The Benefits of Tax CompetitionThe Benefits of Tax Competition



Beginning with a primer on international taxation, this IEA monograph shows why the arguments used by governments to prevent tax competition are fallacious.

Author: Richard Teather

Publisher: Inst of Economic Affairs

ISBN: 0255365691

Category:

Page: 167

View: 134

Beginning with a primer on international taxation, this IEA monograph shows why the arguments used by governments to prevent tax competition are fallacious. It also outlines the threats to tax competition from the EU and OECD, and proposes ways in which the UK government should respond to those threats.

Economic Effects of and Social Responses to Unfair Tax Practices and Tax HavensEconomic Effects of and Social Responses to Unfair Tax Practices and Tax Havens



Empirical work confirms that tax effects on cross - border direct investment are
significant and increasing . A background paper with a review of recent empirical
findings can be made available . 3 . 0 TAX COMPETITION : A COST - BENEFIT ...

Author: Flip de Kam

Publisher:

ISBN: STANFORD:36105110488702

Category:

Page: 36

View: 843

SymposiumSymposium



260 Ultimately , while it is true that if a nation lacks attributes to benefit from FDI
spillover , it is also true that once a ... 203 The benefits which can accrue from
allowing tax competition to flourish should be kept in mind for future debates on
the ...

Author:

Publisher:

ISBN: STANFORD:36105063770304

Category:

Page: 170

View: 382