Nobody downloaded yet

Tax competition V Tax Harmonization in an enlarged European Union - Research Proposal Example

Comments (0) Cite this document
In all countries of the world taxation is controversial and often an unpleasant subject, but in the EU it is more significant than many because member countries…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.4% of users find it useful
Tax competition V Tax Harmonization in an enlarged European Union
Read TextPreview

Extract of sample "Tax competition V Tax Harmonization in an enlarged European Union"

Download file to see previous pages Some people believe tax harmonization creates unity and a level playing field, some believe its stifles competition and creates a socialist economic bloc. In this thesis I will examine both sides of the argument by looking at how the debate and policy has evolved over the years with a specific focus on how tax harmonization affects multinational corporations—whether it encourages them to invest in the EU or to pull out.
Part of the basis of the European arrangement was the centralization of monetary policy. This was a huge amount of sovereignty for individual countries to give up. The assumption underlying this ceding of power by national governments really is that all economies within the European Union are created equally and the same measures for each economy are the appropriate way forward. This itself was controversial enough, but at the time left the national governments to at least set their own tax rates and compete for business by having differing corporate tax rates. This idea too soon bit the dust. Countries like France and Italy with high corporate tax rates were jealous that a country such as Ireland with a low tax rate was able to drum up so much business. They began to push for a single minimum rate across the whole of the EU. For high tax countries this levelled the playing field, but forcing more competitive countries to become less so—for low tax countries—often with much smaller economies to begin with—they had to punish companies that had come to them in the first place seeking a safe haven for investment.
The simple knee-jerk logic is this: As factor mobility increases within the EU, pressure will be placed on member states to lower their tax rates on mobile factors in order to attract business. This unchecked competition will lead to a race to the bottom in which tax rates will dip so low as to threaten countries abilities to supply public goods. In response, one might argue for the necessity of strict ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Tax competition V Tax Harmonization in an enlarged European Union Research Proposal”, n.d.)
Retrieved from
(Tax Competition V Tax Harmonization in an Enlarged European Union Research Proposal)
“Tax Competition V Tax Harmonization in an Enlarged European Union Research Proposal”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Tax competition V Tax Harmonization in an enlarged European Union

Income Tax and Corporation Tax

...liability is due by nine months and one day after the end of the company’s accounting period. In case of late payments penalty is charged from the first day after the missed deadline. In case of payment of corporation tax in installments, the deadline will vary according to the tax liability. According to the efficiency hypothesis increasing competitive pressures in goods and services markets, combined with heightened exit threats by mobile firms and investors, have made spending cuts, tax cuts and ‘regressive’ changes in the tax mix inevitable, Ganghof 2001. In light of the competitive pressures faced according to the above mentioned...
9 Pages(2250 words)Essay

European Union Competition Law

...? Commercial Law Lecturer Commercial Law Introduction In the recent past, European Union Competition Law has led to vertical agreements being pro-competitive. This follows the aim of the EU Competition law to come up with a single market so as to allow firms from Europe to access new markets including those that had been blocked following government barriers. Such penetration into new markets has proved to be risky as well as time and investment consuming. The process has to be facilitated by EU vertical agreements and guided by the Competition law between the local distributors and the producers seeking new markets. The efficient...
7 Pages(1750 words)Essay

Tax avoidance,tax evasion,tax mitigiation understanding the consequences of each conduct to reduce tax liability. Since tax avoidance is a criminal offense punishable by law, knowing the distinction would save one from committing this criminal offense while saving money from taxes without breaking the law. It will help taxpayers to arrange their affairs and keep taxes as low as possible. The tax code is confusing not only for average people but also for those knowledgeable professionals. Hence, it is important to define these two concepts so as not to fall into a criminally punishable offense. The Ramsay Principle: My understanding This principle emanated for two cases : W. T. Ramsay Ltd....
8 Pages(2000 words)Essay

European Union Financial Transaction Tax

...banks against future bailouts. However, this issue remains a matter of controversy amongst member states of European Union. The executive of the European Commission was to carry out a study to determine if it is appropriate to impose the tax on European Union alone. Tobin-style taxation method was imposed on EU’s sector of finance for purposes of generating direct revenue. The European Commission also suggested reduction of levies existing in the 27 state members. The new transaction tax was to ensure that the financial sector paid its fair share since it had been under-taxed for long...
10 Pages(2500 words)Essay

Proposed European Union Financial Transaction Tax

...Proposed European Union Financial Transaction Tax The European Union pecuniary deal toll refers to a pitch that was the work of the European merger. The scheme recommended the imposing of a fiscal operation duty (FTT) to all the 27 affiliate regions of the body, with full achievement targeted to be in position by the end of the year 2014 (Smith, 2012:67). The imposed tax was set to affect monetary transactions happening between fiscal institutions directly by levying 0.1% on any exchange of stakes and bonds, and 0.01% on all offshoot contracts. Due to its proposed gains, many people have since nicknamed the law as the...
9 Pages(2250 words)Essay

The United Kingdom and Proposed European Union Financial Transaction Tax

...?The United Kingdom and the proposed European Union Financial Transaction Tax Introduction The European Union financial transaction tax (EU FTT) is an official proposal put forward by the European Commission with intent to introduce a financial transaction tax system within the EU’s 27 member states by 2014. “The tax would impact financial transactions between financial institutions charging 0.1% against the exchange of shares and bonds and 0.01% across derivative contracts”1. However, the proposed tax system will not have an impact on citizens and businesses. This EU financial transaction tax is different from a bank levy. Regulators believe that the proposed policy has the potential to raise nearly 57 billion Euros per year... . This...
9 Pages(2250 words)Essay

Tax Planning And Tax Avoidance

...1.0 TAX PLANNING AND TAX AVOIDANCE Effective and efficient use of tax saving measures results in saving the tax payments of the organization and evenindividuals. Importantly, these tax savings have been legally benefitted such as grants, allowances and deduction (Back, 2013). Idea of tax saving is as old as 1936 when Lord Tomlin, in IRC v Duke of Westminster, stated that everyone should have the rights in the society in properly and effectively managing their affairs in order to make certain savings from tax as compared to typical tax rate applicability. For example, equity investors can generate gains in the long term in case of high capital gain tax by using buy and hold strategy. The use of an effective strategy is critical so... , the...
10 Pages(2500 words)Essay


...Tax Introduction Tax is always a national issue that attracts interest and outcry from the investors, government and citizens in equal measures. Tax, a compulsory payment by citizens to the government, facilitates the development of public projects. However, several controversies affect the collection and administration of taxes across the world. This arises of the exorbitant imposed on people based on their income levels and wealth accumulation. Although taxation should be done on an equal level, government departments are considering a reduction for the middle class and an increase for the wealthy. It is apparent that taxes from the wealthy and income...
2 Pages(500 words)Essay


...Capital gains tax Introduction The capital gains tax can be defined as a tax on the profits after one has sold or disposed of an asset after it has gained value. In other words, it is the gain that an individual makes which is taxed but not all the amount of money one receives (Grubel & Fraser Institute 2001). For example, when an individual buys a painting at 5000 USD and sells it later for 25000 USD. This means that this individual has made a gain of 20000 USD. The seller of this painting should pay tax for the 20000 USD gains which he or she has acquired as profit. It is worth noting that some assets are tax free and if one’s gains in...
4 Pages(1000 words)Essay


...unethical in a business sense. The reforms need to be carried out without deterring investment or unreasonably creating conflict with compliant taxpayers. However, some of the intricate issues that need to be addressed include the need to establish alternative tax structures that can curtail avoidance, foster investment and maintain international competitiveness. Strict penalties should be put in place to punish those organizations that avoid tax. Similarly, tax advisors who engage in such act should be punished for falling short of the laid down standards. References Bergin, T., 2012. Special Report: How Starbucks avoids UK taxes. Available:...
9 Pages(2250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Proposal on topic Tax competition V Tax Harmonization in an enlarged European Union for FREE!

Contact Us