Gains from Trade in Government Revenue and Pareto-Efficient International Taxation

2005 ◽  
Vol 5 (1) ◽  
Author(s):  
Jeremy Edwards
Keyword(s):  
International Taxation ◽  
Government Revenue ◽  
Gains From Trade ◽  
Tax System ◽  
Commodity Taxes ◽  
Special Cases ◽  
Pareto Efficient ◽  
International Tax ◽  
International Transfers

AbstractThis paper uses the concept of gains from trade in government revenue to clarify and extend the analysis of Keen and Wildasin (2004). It shows that their results derive from the use of trade taxes to achieve gains from trade in revenue in circumstances when direct international transfers cannot be used for this purpose. The paper shows that, in such circumstances, Pareto-efficient international equilibria are globally production-inefficient only in special cases, but origin-based commodity taxes, source-based capital taxes, and taxes on trade are nevertheless typically part of a Pareto-efficient international tax system. However, this conclusion depends on ruling out the use of international transfers to trade revenue, the case for which is not compelling.

What made base erosion and profit shifting project possible?

2018 ◽  
Vol 25 (3) ◽  
pp. 795-810
Author(s):  
Akira Matsuoka
Keyword(s):  
Historical Context ◽  
Tax Avoidance ◽  
International Taxation ◽  
Profit Shifting ◽  
Tax System ◽  
Content Type ◽  
Grass Roots ◽  
Legal Perspective ◽  
Before And After ◽  
International Tax

Purpose The purpose of this paper is to unveil the true background of the Base Erosion and Profit Shifting (BEPS) Project and to suggest crucial indexes for bringing a movement into a future ceiling causing a struggle of the international tax system. Design/methodology/approach This paper looks into the historical context of this project before and after Starbucks’ scandal, comparing to other contexts of the international tax system. Also, this paper partially reviews BEPS from a legal perspective. Findings The key factors for building momentum of reform of international taxation are a country having a government willing to embrace the cause of reform, unfairness felt toward entities using tax avoidance schemes which other comparable entities could not be use, grass-roots pressure for the reform, effective places to negotiate cooperation among major countries for the reform, solid cooperation among many countries in the world to implement standards and rhetoric of slogan with less opposition. Originality/value The momentum of the reform of international taxation was analyzed before. But the BEPS Project has involved some unique events as compared with the Organization for Economic Cooperation and Development’s project on harmful tax practices, such as initiation of NGOs and boycott by consumers. Additionally, this paper will discuss insights, which the former research did not do.

On the Fragility of the International Taxation Legal System

2021 ◽  
Vol 22 (3) ◽  
Author(s):  
Monica Victor
Keyword(s):  
Global Governance ◽  
Legal System ◽  
Tax Competition ◽  
Governance Structure ◽  
International Taxation ◽  
Tax System ◽  
International Tax ◽  
Taxation System

This Article focuses on the OECD’s work on harmful tax competition todemonstrate how the OECD and subsidiary bodies’ governance structure,and the standard-settingprocess, built a fragile international taxationlegal system that is not just impairing legitimate tax competitionbut also failing to promote cooperation among tax jurisdictions. Theoption for the harmful tax competition work among other tax issuescovered by the OECD is justified by the difficulties faced by the WTODispute Settlement Body (DSB) while adjudicating the Argentina-FinancialServices dispute. In this dispute, Panama challenged theimposition of defensive tax measures against harmful tax competitionbased on a list of non-cooperativetax jurisdictions issued by the Argentine tax authority. The clash between the international tradelegal system and the international tax system unveiled the fragilities ofthe last related not just to the global governance structure but also theinternational tax standards for harmful tax competition. In spite ofthe recent efforts by the OECD by the lauching of the BEPS Project, thechallenge of making the international taxation system work for allMembers and non-Membersremains.

Domestic Anti-Avoidance Legislation in Relation to Tax Treaty Law

2017 ◽  
Vol 6 (2) ◽  
pp. 312
Author(s):  
Shkumbin Asllani
Keyword(s):  
International Law ◽  
Tax Avoidance ◽  
International Taxation ◽  
Main Principle ◽  
Legal Practice ◽  
Tax Treaties ◽  
International Tax ◽  
Tax Payers ◽  
The Relationship ◽  
Domestic Law

In today’s international taxation most of the developing countries enter into tax treaties which are drafted in line with the OECD MC to eliminate double taxation. Yet, is well-known fact that tax treaties in practice are abused by tax payers, therefore, majority of states have introduce legislation specifically designed to prevent tax avoidance and protect their domestic interests. In legal practice and literature the act of overriding international tax treaties and denying treaty benefits in favour of domestic law provisions threatens main principle of international law and therefore is questionable to what extend the relationship between domestic law and international tax treaty agreements bridges the international norms.

Full Implementation under Ambiguity

2021 ◽  
Vol 13 (1) ◽  
pp. 148-178
Author(s):  
Huiyi Guo ◽  
Nicholas C. Yannelis
Keyword(s):  
Social Choice ◽  
Expected Utility ◽  
Sufficient Conditions ◽  
Choice Functions ◽  
Maxmin Expected Utility ◽  
Special Cases ◽  
Social Choice Functions ◽  
Bayesian Implementation ◽  
Pareto Efficient ◽  
Choice Set

This paper introduces the maxmin expected utility framework into the problem of fully implementing a social choice set as ambiguous equilibria. Our model incorporates the Bayesian framework and the Wald-type maxmin preferences as special cases and provides insights beyond the Bayesian implementation literature. We establish necessary and almost sufficient conditions for a social choice set to be fully implementable. Under the Wald-type maxmin preferences, we provide easy-to-check sufficient conditions for implementation. As applications, we implement the set of ambiguous Pareto-efficient and individually rational social choice functions, the maxmin core, the maxmin weak core, and the maxmin value. (JEL D71, D81, D82)

scholarly journals Revisiting the Case of Customary International Tax Law

2021 ◽  
Vol 23 (1) ◽  
pp. 79-103
Author(s):  
Dirk Broekhuijsen ◽  
Irma Mosquera Valderrama
Keyword(s):  
International Law ◽  
International Taxation ◽  
Customary Law ◽  
Tax Law ◽  
Profit Shifting ◽  
Customary International Law ◽  
The Creation ◽  
International Tax

Abstract Customary international tax law has traditionally not received a lot of acclaim in international tax law literature. However, the infrastructure of international tax law is becoming increasingly multilateral. The recent adoption of the Multilateral Instrument and the creation of the Inclusive Framework, two initiatives related to the OECD/G20 Base Erosion and Profit Shifting Project, have accelerated the width of cooperation on international tax matters. For that reason, the authors (re)consider the existence of customary international law in the area of international tax law. They conclude that, perhaps contrary to the intuition of tax lawyers, the evidence in favour of customary international tax law is building up. The question whether customary law exists within the area of international taxation is therefore not misplaced.

scholarly journals Avoiding Double Taxation Through The Assessment of International Tax Treties. Case: ESP’s versus Anaf Braşov

2019 ◽  
Vol 23 (37) ◽  
pp. 1-15
Author(s):  
Florin Dumiter ◽  
Ștefania Amalia Jimon ◽  
Florin Gheorghe Bene
Keyword(s):  
Best Practices ◽  
Moral Hazard ◽  
Legal Framework ◽  
International Taxation ◽  
Double Taxation ◽  
Asymmetrical Information ◽  
Treaty Shopping ◽  
International Tax

Abstract International double taxation represents one of the main problems’ for which taxpayers have to deal within a world fulfilled with globalization, uncertainty, risk, asymmetrical information and moral hazard. In this sense, in this article it is provided a qualitative overview regarding the appearance and evolution of the main double taxation conventions and their legal framework. In this article it is tackled some important issues, namely: the rationale behind the construction and engaging in double taxation conventions; the need for a coherent and just application of those conventions; the historical appearance and evolution of the double taxation conventions, as well as the quid pro quo OECD Model Convention and UN Model Convention. The conclusions of this article highlight the importance and ultimately need for construction of best practices new and complex multilateral tax convention at the UE level in order to diminish the contagious effects of the treaty shopping practices. The case study presented in this article from the Romanian jurisprudence highlights the multi-faced concept of double taxation and the comprehension approach which must be undertaken in order to solve the complex issues of the international taxation via double taxation treaties.

Field Heteronomy and Contingent Expertise: The Case of International Tax Justice

2021 ◽  
Author(s):  
Michael Vaughan
Keyword(s):  
Financial Crisis ◽  
International Taxation ◽  
Field Analysis ◽  
2008 Financial Crisis ◽  
Diverse Range ◽  
The United Kingdom ◽  
Field Boundaries ◽  
International Tax ◽  
The 2008 Financial Crisis ◽  
Depth Interviews

Abstract The international tax system is targeted by a diverse range of networked civil society actors, from critical professionals mobilizing their expertise to anti-austerity protestors targeting the consequences of tax dodging. The years following the 2008 financial crisis saw an increase in the range of these actors and their cooperation with one another. This paper argues that a transnational field analysis complements existing expertise-oriented approaches, by identifying the overarching objective of the tax justice agenda as increasing heteronomy in the international taxation field relative to political fields. This objective requires the mobilization of diverse resources across different fields, resulting in network relationships crossing field boundaries to contest inter-field relations, rather than any single bounded field struggle. The findings are supported by an analysis of tax justice advocacy after the 2008 financial crisis in the United Kingdom and Australia, including thirty-seven in-depth interviews with different organizations involved in the network.

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