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dc.contributor.authorDurst, Michael C.
dc.date.accessioned2016-03-23T11:59:03Z
dc.date.available2016-03-23T11:59:03Z
dc.date.issued2014-06
dc.identifier.citationDurst, M.C. (2014) Beyond BEPS: A Tax Policy Agenda for Developing Countries. ICTD Working Paper 18. Brighton: IDS.en
dc.identifier.isbn978-1-78118-181-2
dc.identifier.urihttp://opendocs.ids.ac.uk/opendocs/handle/123456789/10249
dc.descriptionbase erosion; profit shifting; tax competition; transfer pricing; unitary taxation; formulary apportionment.en
dc.description.abstractAs the Organisation for Economic Co-operation and Development (OECD) moves to the final stages of its work on base erosion and profit shifting (BEPS), this paper reflects on the most promising directions for legislative changes and other action which developing countries might take to protect their corporate tax bases. The paper observes that the barriers facing developing countries generally do not arise from technical difficulties in designing and implementing legislative measures. Indeed, effective controls on base erosion are well-known among policy-makers, particularly limitations on outbound deductions and withholding taxes to discourage excessive outbound payments to affiliates. Instead, the most important impediment to effective control of base erosion is the pressure of tax competition – namely, the fear that effectively imposing income taxes on inbound investors will deter employment and economic growth. The paper does not seek to assess the objective validity of this fear, but observes that it is in fact pervasive, and that effective policy-making must recognise the practical political barriers this fear imposes. With the seriousness of tax competition borne in mind, the paper enumerates and briefly comments on the following topics, all of which should be developed in future research efforts: (i) the possible utility of simplified measures to discourage base erosion, notably the greater use of withholding taxes (a measure which the OECD’s BEPS effort has not sought to address); (ii) the potential for both incremental changes to transfer pricing rules to facilitate enforcement and administration (for example, the use of Brazil-style standard margins and markups), as well as the longer-term possibility of unitary taxation; (iii) the importance of regional coordination of tax policies to mitigate tax competition; and (iv) the continuing role of international groups such as the International Monetary Fund (IMF) and non-government organisations in assisting developing countries to generate realistic assessments of the trade-off which may exist between effective corporate taxation and inbound investment.en
dc.description.sponsorshipDfID, NORADen
dc.language.isoenen
dc.publisherInstitute of Development Studiesen
dc.relation.ispartofseriesICTD Working Paper;18
dc.rightsBeyond BEPS: A Tax Policy Agenda for Developing Countries Michael C. Durst ICTD Working Paper 18 First published by the Institute of Development Studies in June 2014 © Institute of Development Studies 2014 ISBN: 978-1-78118-181-2 A catalogue record for this publication is available from the British Library. All rights reserved. Reproduction, copy, transmission, or translation of any part of this publication may be made only under the following conditions: - with the prior permission of the publisher; or - with a licence from the Copyright Licensing Agency Ltd., 90 Tottenham Court Road, London W1P 9HE, UK, or from another national licensing agency; or - under the terms set out below. This publication is copyright, but may be reproduced by any method without fee for teaching or nonprofit purposes, but not for resale. Formal permission is required for all such uses, but normally will be granted immediately. For copying in any other circumstances, or for reuse in other publications, or for translation or adaptation, prior written permission must be obtained from the publisher and a fee may be payable. Available from: The International Centre for Tax and Development at the Institute of Development Studies, Brighton BN1 9RE, UK Tel: +44 (0) 1273 606261 Fax: +44 (0) 1273 621202 E-mail: info@ictd.ac.uk Web: www.ids.ac.uk/ids/bookshop IDS is a charitable company limited by guarantee and registered in England (No. 877338)en
dc.rights.urihttp://www.ids.ac.uk/files/dmfile/IDSOpenDocsStandardTermsOfUse.pdfen
dc.subjectEconomic Developmenten
dc.titleBeyond BEPS: A Tax Policy Agenda for Developing Countriesen
dc.typeIDS Working Paperen
dc.rights.holderInstitute of Development Studiesen
dc.identifier.externalurihttp://www.ictd.ac/ju-download/2-working-papers/11-beyond-beps-a-tax-policy-agenda-for-developing-countries


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