Chapter 13 Destination-Based Taxation: A Promising but Risky Destination
Author: Mr. Alexander D Klemm
Language:
English
Keywords:
Profit shifting; tax competition; tax avoidance; international cooperation; tax reform; multinationals; digitalization; tax authorities; profit-shifting opportunity; tax-motivated profit; routine profit; Cash-flow tax; Value-added tax; Corporate income tax; Allowance for corporate equity; Destination-based taxation; Global

Abstract

Country-specific origin-based profit taxes are marked by profit shifting and tax competition (see Chapter 6). Incentives for profit shifting can be mitigated, but not eliminated, by stricter rules and strengthening tax administration, while coordination can reduce the scope of tax competition but is hard to agree on (Chapter 11). Moreover, tighter anti-tax-avoidance rules often raise compliance and administrative costs and may intensify tax competition (Chapter 9).

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Cover Corporate Income Taxes under Pressure
Corporate Income Taxes under Pressure
Why Reform Is Needed and How It Could Be Designed
Author: Ruud A. de Mooij, Mr. Alexander D Klemm, and Ms. Victoria J Perry
ISBN:
9781513511771
Publication Date:
26 Feb 2021
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781513511771.071
Pages:
388