Beginning with a primer on international taxation, this IEA monograph shows why the arguments used by governments to prevent tax competition are fallacious and demonstrates the enormous benefits that can flow from such competition. The activities of so-called tax havens frequently prevent the double or triple taxation of investment returns, and other forms of tax competition prevent governments from exploiting their citizens through high taxes on labour. The author outlines the current threats to tax competition from the EU and OECD and proposes ways in which the UK government should respond to those threats.
CONTENTS: Introduction; The Benefits of Tax Competition; Economic Analysis of Tax Competition; The Effects of Tax Competition; Towards a New Approach to Tax Competition; Tax Competition in Practice -- The Use of Tax Havens; Political Opposition to Tax Competition; Attacks on Competition I -- the EU Savings Tax Directive; Attacks on Tax Competition II -- the OECD; Attacks on Tax Competition III -- Value Added Tax; Attacks on Tax Competition IV -- Other UE Activity; Attacks on Tax Competition V -- Other Activity; Conclusions.