International Tax Competition

Globalisation and Fiscal Sovereignty

image of International Tax Competition
International tax competition has come to the forefront of global economic policy debate at the outset of the 21st Century. The importance of taxation regimes as an essential factor in driving economic growth, investment inflows and national development has increasingly been recognised.

However, there have also been growing concerns amongst the European Union and the OECD countries that tax competition can be harmful to their economies. A large number of Commonwealth developing countries are now potentially affected by the EU and OECD initiatives to regulate international tax competition.

This book provides a collection of articles by experts from Commonwealth countries on international tax competition, considering the concerns of affected nations. Issues such as globalisation and fiscal sovereignty, WTO issues, and economic development perspectives are considered with particular reference to the concerns of small and developing economies of the Commonwealth.



Export Processing Zones and the WTO Agreement on Subsidies and Countervailing Measures

Many of the Commonwealth’s developing countries have established export processing zones (EPZs) as trade policy instruments designed to promote non-traditional exports. Typically, these programmes provide that if a company locates a manufacturing facility within a geographically delimited zone and exports all or most of its products it will be provided with a number of incentives. These incentives range from exemption from various direct and indirect taxes and customs duties to the provision of a number of free or low-cost services. EPZs located in developing countries typically provide the greatest number of incentives.


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