Tax treaties with developing countries and the allocation of taxing rights

TitleTax treaties with developing countries and the allocation of taxing rights
Publication TypeJournal Article
Year of Publication2016
AuthorsD. Paolini, P. Pistone, G. Pulina, M. Zagler
JournalEuropean Journal of Law and Economics
Volume42
Issue3
Pagination383–404
Abstract

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.

URLhttp://link.springer.com/article/10.1007/s10657-014-9465-9/fulltext.html
DOI10.1007/s10657-014-9465-9
Keywordscost sharing, developing countries, exchange of information, international tax justice, revenue sharing, tax treaties