What do we know about corporate tax competition?

Devereux, Michael and Loretz, Simon (2012) What do we know about corporate tax competition? Centre for Business Taxation Working Paper, Oxford.

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We review the empirical literature on competition in source-based taxes on corporate income. Drawing an analogy to the competition models for the goods market indicates how evidence for the existence of tax competition can be provided, and highlights that tax competition can take many forms. With this in mind we classify the empirical literature, and highlight the importance of the measurement of tax rates and openness. Using measures based on the statutory tax system, there is evidence for tax competition mostly in the European Union. In contrast to the view of Gordon (1992) small countries appear to be the leader of the tax competition game.

Item Type: Other Working Paper
Keywords: tax competition; corporate taxation
Centre: Oxford University Centre for Business Taxation > CBT Working Papers
Date Deposited: 13 Mar 2013 10:57
Last Modified: 05 Oct 2018 14:26
URI: http://eureka.sbs.ox.ac.uk/id/eprint/4386

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