Co-Ordination of Corporate Exit Taxation in the Internal Market and Beyond
Corporate exit taxation is an important obstacle to the deepening of economic integration within the internal market and beyond, as it distorts cross-border business activities of multinational enterprises and hinders cross-border business reorganisations. This article argues that the problems related to corporate exit taxation can only be addressed in a satisfactory way through co-ordination. It describes how a co-ordinated corporate exit taxation regime should be designed and how it could be implemented within the EU, in the context of a common corporate tax base or through a targeted harmonisation measure, as well as outside the EU in Double Taxation Conventions.
Risk and Redistribution in Open and Closed Economies
A growing body of tax scholarship considers the interplay of taxation and risk in the domestic context. This article is the first attempt in the tax literature to analyze systematically the relationship between tax and risk in the international, or open economy, setting. I demonstrate how common tax instruments can result in certain jurisdictions disproportionately taxing a portion of the upside gains from successful risky investments, while other jurisdictions end up disproportionately bearing the costs associated with unsuccessful ones. This leads to a phenomenon that I call “divergence.” I provide formal specifications for divergence and then make a preliminary assessment of its magnitude. The distributive effects of divergence appear to be substantial, arguably on the same order of magnitude, from the U.S. perspective, as the nonmilitary foreign aid budget. I then turn to a normative critique of these distributive effects, based on conflicts with the jurisdictional entitlement to tax on the basis of source and with domestic policies regarding the subsidization of risky investment. Finally, I discuss possible responses, including a shift towards global formulary apportionment in transfer pricing and greater reliance on territorial over worldwide systems of taxation.
Implementation of Tourism Satellite Account: Assessing the Contribution of Tourism to the Croatian Economy
Compiling the indicators of tourism consumption and the output of tourism industries, Tourism Satellite Account (TSA) provides a framework for internationally harmonized measurements of direct macroeconomic contribution of tourism. Ivandic and Marusic provide a detailed methodological approach for the transfer of TSA theoretical concepts to the assessment of tourism economic contribution on the case of the Croatia. Giving that the TSA compilation is still characterized by a surprisingly wide range of ‘styles’ used, the chapter contributes to a better understanding of the issues related to measurement of direct tourism impacts. It also gives a set of baseline criteria for resource allocation within tourism policy and the further evaluation of its effectiveness.