Low Tax Jurisdictions and Preferential Regimes : Policy Gaps in Developing Economies

This paper reviews recent international initiatives and domestic policy developments aimed at helping countries to protect their tax base against erosion by individuals and companies that allocate assets to or route income via low tax jurisdictions...

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Main Authors:	Pemberton, Jonathan Leigh, Loeprick, Jan
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	TAXATION DIVERTED PROFITS TAX INTERNATIONAL TAXATION MULTINATIONAL CORPORATIONS PREFERENTIAL TAX REGIMES
Online Access:	http://documents.worldbank.org/curated/en/168211552400964868/Low-Tax-Jurisdictions-and-Preferential-Regimes-Policy-Gaps-in-Developing-Economies http://hdl.handle.net/10986/31404

id	okr-10986-31404
recordtype	oai_dc
spelling	okr-10986-314042022-06-04T12:16:16Z Low Tax Jurisdictions and Preferential Regimes : Policy Gaps in Developing Economies Pemberton, Jonathan Leigh Loeprick, Jan TAXATION DIVERTED PROFITS TAX INTERNATIONAL TAXATION MULTINATIONAL CORPORATIONS PREFERENTIAL TAX REGIMES This paper reviews recent international initiatives and domestic policy developments aimed at helping countries to protect their tax base against erosion by individuals and companies that allocate assets to or route income via low tax jurisdictions. The paper highlights the benefits and limitations of existing policy instruments from the perspective of capital-importing developing economies. Focusing on two common policy gaps for developing economies, options are explored for (i) introducing necessary charging provisions to ensure effective taxation of individuals, and (ii) an anti-diversion rule tailored to reflect developing economy contexts and administrative constraints. These proposals include a possible definition of excess profits in low tax jurisdictions and options for distribution keys to reallocate profits to countries where there is "real" economic substance and activity. The measures discussed could also address the diversion of profits to entities benefitting from preferential regimes in countries with high nominal tax rates. 2019-03-14T20:59:38Z 2019-03-14T20:59:38Z 2019-03 Working Paper http://documents.worldbank.org/curated/en/168211552400964868/Low-Tax-Jurisdictions-and-Preferential-Regimes-Policy-Gaps-in-Developing-Economies http://hdl.handle.net/10986/31404 English Policy Research Working Paper;No. 8778 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	TAXATION DIVERTED PROFITS TAX INTERNATIONAL TAXATION MULTINATIONAL CORPORATIONS PREFERENTIAL TAX REGIMES
spellingShingle	TAXATION DIVERTED PROFITS TAX INTERNATIONAL TAXATION MULTINATIONAL CORPORATIONS PREFERENTIAL TAX REGIMES Pemberton, Jonathan Leigh Loeprick, Jan Low Tax Jurisdictions and Preferential Regimes : Policy Gaps in Developing Economies
relation	Policy Research Working Paper;No. 8778
description	This paper reviews recent international initiatives and domestic policy developments aimed at helping countries to protect their tax base against erosion by individuals and companies that allocate assets to or route income via low tax jurisdictions. The paper highlights the benefits and limitations of existing policy instruments from the perspective of capital-importing developing economies. Focusing on two common policy gaps for developing economies, options are explored for (i) introducing necessary charging provisions to ensure effective taxation of individuals, and (ii) an anti-diversion rule tailored to reflect developing economy contexts and administrative constraints. These proposals include a possible definition of excess profits in low tax jurisdictions and options for distribution keys to reallocate profits to countries where there is "real" economic substance and activity. The measures discussed could also address the diversion of profits to entities benefitting from preferential regimes in countries with high nominal tax rates.
format	Working Paper
author	Pemberton, Jonathan Leigh Loeprick, Jan
author_facet	Pemberton, Jonathan Leigh Loeprick, Jan
author_sort	Pemberton, Jonathan Leigh
title	Low Tax Jurisdictions and Preferential Regimes : Policy Gaps in Developing Economies
title_short	Low Tax Jurisdictions and Preferential Regimes : Policy Gaps in Developing Economies
title_full	Low Tax Jurisdictions and Preferential Regimes : Policy Gaps in Developing Economies
title_fullStr	Low Tax Jurisdictions and Preferential Regimes : Policy Gaps in Developing Economies
title_full_unstemmed	Low Tax Jurisdictions and Preferential Regimes : Policy Gaps in Developing Economies
title_sort	low tax jurisdictions and preferential regimes : policy gaps in developing economies
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/168211552400964868/Low-Tax-Jurisdictions-and-Preferential-Regimes-Policy-Gaps-in-Developing-Economies http://hdl.handle.net/10986/31404
_version_	1764474252490178560

Low Tax Jurisdictions and Preferential Regimes : Policy Gaps in Developing Economies

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