Tax treaties with developing countries and the allocation of taxing rights
|Title||Tax treaties with developing countries and the allocation of taxing rights|
|Publication Type||Journal Article|
|Year of Publication||2016|
|Authors||D. Paolini, P. Pistone, G. Pulina, M. Zagler|
|Journal||European Journal of Law and Economics|
Worldwide income taxation in the country of residence is a legal dogma of international taxation. We question this dogma from the perspective of relations between developed and developing countries from legal and economic perspectives, and make a modern and fair proposal for tax treaties. We show under which conditions a developing and a developed country will voluntarily sign a tax treaty where the developing country is more inclined to share the information with the developed country and whether they should share revenues. Moreover, we demonstrate how the conclusion of a tax treaty can assist in the implementation of a tax audit system in the developing country.
|Keywords||cost sharing, developing countries, exchange of information, international tax justice, revenue sharing, tax treaties|