INTERGOVERNMENTAL POLICY ON MULTINATIONAL CORPORATIONS A SIMPLE MODEL OF TAX BARGAINING

In: European journal of political research: official journal of the European Consortium for Political Research, Band 5, Heft 4, S. 363-380

Abstract

MULTINATIONAL COMPANIES CAN PLAY OFF MOST GOVERNMENTS TO MINIMISE THEIR TAX PAYMENTS IN THE ABSENCE OF INTERNATIONALLY COORDINATED FISCAL POLICIES. WITHOUT A SUPRANATIONAL ENFORCEMENT AGENCY, MOST TAX HARMONIZATION POLICIES ARE UNSTABLE BECAUSE ONE OR ANOTHER SIGNATORY ALWAYS HAS AN INCENTIVE TO BREAK RANKS.