What principles should guide the taxation of international income?

Devereux, Michael (2008) What principles should guide the taxation of international income? In: Centre for Business Taxation Annual Symposium 2008, 16/06/08, Centre for Business Taxation, University of Oxford.


This paper reviews economic principles for optimality of the taxation of international profit, from both a global and national perspective. It argues that for systems based on residence or source, nothing less than full harmonisation across countries can achieve global optimality. The conditions for national optimality are more difficult to identify, but are most likely to imply source-based taxation. However, source-based taxation requires an allocation of the profits of multinational companies to individual jurisdictions; this is not only very difficult in practice, but in some cases is without any conceptual foundation. To the extent that the international tax system cannot conform to basic economic principles, and is becoming increasingly infeasible, more fundamental reforms – such as a destination-based tax – require further examination.

Item Type: Conference or Workshop Item (Speech)
Keywords: corporate taxation
Subject(s): Taxation
Centre: Oxford University Centre for Business Taxation
Date Deposited: 13 Jun 2012 15:39
Last Modified: 23 Oct 2015 14:07
URI: http://eureka.sbs.ox.ac.uk/id/eprint/3716

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