Tax information exchange agreements with developing countries and tax havens

Post date: 19-Mar-2015 05:08:55

26 MARZO 2015, ore 11.00, Sala Riunioni Primo Piano

Relatore: Prof. Martin Zagler, UPO, DiSEI

Titolo: Tax information exchange agreements with developing countries and tax havens

Abstract: The exchange of tax information has received ample attention recently, due to widespread 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 prooves 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 (TIEA) or a double tax treaty with information exchange (DTT) is more likely when the capital importer is compensated thru official development assistence (ODA). We finally demonstrate how the foreign account tax compliance act (FATCA) and similar international initiatives bias the bargaining outcome in favour of capital exporting countries.

Coautori: Julia Braun