Quotation Braun, Julia, Zagler, Martin. 2015. Tax information exchange with developing countries and tax havens. WU International Taxation Research Paper Series No. 2015-25.


RIS


BibTeX

Abstract

The exchange of tax information has received ample attention recently, due to a number of recent headlines on aggressive tax planning and tax evasion. Whilst both participating tax authorities will gain when foreign investments (FDI) are bilateral, we demonstrate that FDI receiving nations will lose in asymmetric situations. We solve a bargaining model that proves that tax information exchange will only happen voluntarily with compensation for this loss. We then present empirical evidence in a global panel and find that a tax information exchange agreement or a double tax treaty with information exchange is more likely when the capital importer is compensated through official development assistance. We finally demonstrate how the foreign account tax compliance act and similar international initiatives bias the bargaining outcome in favour of capital exporting countries.

Tags

Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title Tax information exchange with developing countries and tax havens
Title of whole publication WU International Taxation Research Paper Series No. 2015-25
Year 2015

Associations

People
Braun, Julia (Former researcher)
Zagler, Martin (Details)
Organization
Research Institute for International Taxation FI (Details)
Department of Economics (Crespo Cuaresma) (Details)
Google Scholar: Search