Emergence of cross-border taxation and firm behaviour

Goyal, Ashima (2015): Emergence of cross-border taxation and firm behaviour. Published in: Base Erosion and Profit Shifting (BEPS): The Global Taxation Agenda (2016): pp. 73-93.

Abstract

The chapter discusses the evolution of Base Erosion and Profit Shifting (BEPS) from an emerging market (EM) perspective. It shows how treaties meant to prevent double taxation were used for double non-taxation and the problem was especially severe in EMs. It presents evidence of BEPS in India using firm level panel data. Since one country acting alone can frighten away foreign capital, global co-ordination is necessary. This makes BEPS one of the most productive initiatives G-20 has taken up. It aims to build global norms and agreements to ensure that taxes are paid where profit is earned. India should reform its corporate tax and regimes and bilateral investment treaties in line with international developments even while simplifying them and making them more business friendly.

• Item Type: MPRA Paper
• Language: English
• Keywords: Base Erosion and Profit Shifting (BEPS); emerging market; firm panel data
• Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E61 - Policy Objectives ; Policy Designs and Consistency ; Policy Coordination; F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business; F - International Economics > F3 - International Finance > F36 - Financial Aspects of Economic Integration; F - International Economics > F5 - International Relations, National Security, and International Political Economy > F59 - Other

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