International Tax Competition and Its Reflections in Turkey

2016 ◽  
pp. 176-200
Author(s):  
Semih N. Öz
Keyword(s):  
Tax Competition ◽  
Transfer Pricing ◽  
Fiscal Policies ◽  
Tax Rates ◽  
Tax Havens ◽  
International Tax Competition ◽  
Income Tax Law ◽  
International Tax ◽  
The Government ◽  
Defensive Measures

International tax competition has been significantly increased since 1980s as a result of liberalized financial and fiscal policies, while this leads sovereign nations faced budgetary deficit problems and public finance related considerations. This paper aims to analyze how Turkish tax system is affected by international tax competition, services submitted by tax havens and facilities used by multinationals. In 2006, a new Corporate Income Tax Law was introduced in Turkey. One of its purposes is to combat against harmful tax competition and therefore it covered defensive measures such as controlled foreign company (CFC), thin capitalization rule and transfer pricing regulation, to prevent companies from leaving their income abroad. This study aims to analyze effects of international tax competition in Turkey whether there are change in tax rates, tax structure, and tax revenue; and how the government respond it, as a beneficiary; or, a loser.

scholarly journals Treasure Islands

2010 ◽  
Vol 24 (4) ◽  
pp. 103-126 ◽  
Author(s):  
James R Hines
Keyword(s):  
Tax Competition ◽  
The United States ◽  
Economic Effects ◽  
Tax Rates ◽  
Financial Systems ◽  
Tax Havens ◽  
Regulatory Policies ◽  
International Tax Competition ◽  
Tax Haven ◽  
Effective Operation

In movies and novels, tax havens are often settings for shady international deals; in practice, they are rather less flashy. Tax havens, also known as “offshore financial centers” or “international financial centers,” are countries and territories that offer low tax rates and favorable regulatory policies to foreign investors. For example, tax havens typically tax inbound investment at zero or very low rates and further encourage investment with telecommunications and transportation facilities, other business infrastructure, favorable legal environments, and limited bureaucratic hurdles to starting new firms. Tax havens are small; most are islands; all but a few have populations below one million; and they have above-average incomes. The United States and other higher-tax countries frequently express concerns over how tax havens may affect their economies. Do they erode domestic tax collections; attract economic activity away from higher-tax countries; facilitate criminal activities; or reduce the transparency of financial accounts and so impede the smooth operation and regulation of legal and financial systems around the world. Do they contribute to excessive international tax competition? These concerns are plausible, albeit often founded on anecdotal rather than systematic evidence. Yet tax haven policies may also benefit other economies and even facilitate the effective operation of the tax systems of other countries. This paper evaluates evidence of the economic effects of tax havens.

scholarly journals International tax competition and justice: The case for global minimum tax rates

2019 ◽  
Vol 18 (3) ◽  
pp. 242-263
Author(s):  
Andreas Cassee
Keyword(s):  
Tax Competition ◽  
Global Minimum ◽  
Point Of View ◽  
Self Determination ◽  
Tax Rates ◽  
Redistributive Taxation ◽  
International Tax Competition ◽  
Theories Of Justice ◽  
Independent Mechanism ◽  
International Tax

International tax competition undermines states’ capacity for redistributive taxation. It is thus problematic from the point of view of both cosmopolitan and internationalist theories of justice. This article examines the proposal of a fiscal policy constraint that prohibits tax policies if they are strategically motivated and harmful to effective fiscal self-determination internationally. I argue that we should opt for a more robust, preference-independent mechanism to prevent harmful tax competition instead. States should, as a matter of justice, accept global minimum tax rates on mobile tax bases.

scholarly journals The Impact of Globalization and International Tax Competition on Tax Policies

2020 ◽  
Vol 11 (4) ◽  
pp. 1
Author(s):  
Alla Sokolovska ◽  
Tetyana Zatonatska ◽  
Andriy Stavytskyy ◽  
Oleksii Lyulyov ◽  
Vincent Giedraitis
Keyword(s):  
Tax Competition ◽  
General Level ◽  
Tax Burden ◽  
Tax Rates ◽  
Negative Effects ◽  
Tax System ◽  
Association Agreement ◽  
International Tax Competition ◽  
International Tax ◽  
The Impact

The aim of the paper is to determine to what extent the strengthening of the transparency of the Ukrainian economy and its incorporation in international tax competition affects the tax policy of the country and the peculiarities of its tax system. In the study, the logical analysis of the direct and inverse relationship of changes in taxation with such manifestations of globalization, as the movement of capital and labor resources from Ukraine and to the country, is combined with an empirical (regression) analysis of the relationship between globalization and the main characteristics of the Ukrainian tax system. It is proved that the increase of incorporation of Ukraine in globalization processes, despite the reduction of taxes on the main factors of production, is accompanied by an increase in the general level of tax burden on the economy (tax rate). The above mentioned is a consequence of increase of other taxes, including excise, caused both by internal needs of Ukraine (conducting the policy of fiscal consolidation caused by large public debt, and increasing defense expenditures) and its international obligations (EU Association Agreement). The tax system in Ukraine is much stronger (about 25%) influenced by the general index of globalization in comparison with its subindex characterizing the economic component of globalization. Obviously, this is owing to the greater influence on taxation in Ukraine of other components of globalization such as political and social one. The results show that the growth of the globalization index is accompanied by rather expected effects such as reduction of corporate profit tax rates and personal income tax, transferring the tax burden from capital to labor and, to a greater extent, on consumption, improving business conditions in the context of tax payments, and specific increase in the general level of tax burden on the economy, significant losses of the state that is not so much from the reduction of tax rates as from the erosion of the tax base on income, which is the result of a combination of negative effects of external and internal factors; the threat of escalating the policy of low tax rates. It is recommended to the Ukrainian Government to focus increasingly on the tax evolution trends in post-socialist EU countries to strengthen Ukraine`s position in tax competition with this group of countries.

scholarly journals Unternehmungsbesteuerung - gibt es nationalstaatliche Handlungsspielräume?

2009 ◽  
Vol 39 (154) ◽  
pp. 47-63
Author(s):  
Astrid Kraus
Keyword(s):  
Tax Evasion ◽  
Tax Competition ◽  
Tax Rates ◽  
Economic Activities ◽  
Corporate Tax ◽  
Political Will ◽  
Industrial Countries ◽  
Taxable Income ◽  
International Tax Competition ◽  
International Tax

Like Germany, most industrial countries use international tax competition to justifY their corporate tax cuts. They argue that high nominal corporate tax rates will canse a shift of taxable income to low tax countries and reduce their overall economic attractiveness. Although at least the fear of tax evasion is not without any reason in globalised markets, there is scope to increase corporate taxation left unused because a lack of political will. However, the lack of binding international tax standards and harmonisation makes it difficult to stop tax competition effectively and to allow an adequate taxation of global players in the respective countries of economic activities.

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