Profit shifting and tax competition policy

A Global Justice Perspective

Dados Bibliográficos

ID6420874
AutoresJames H Love (University of Leeds, autor correspondente)
Ano2024
Volume21
Fascículo3
Páginas337-359
Data de publicação2024-10-15
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoCritical Perspectives on International Business (JOURNAL)
Identificadores do periódicoISSN: 1742-2043 • E-ISSN: 1758-6062
EditoraEmerald Publishing Limited (PUBLISHER • GB)
DOI10.1108/cpoib-06-2024-0061
OpenAlexW4403424738
IdiomaEN
Citações recebidas2
Referências citadas33

Purpose This paper aims to argue that the endogenous processes of profit shifting by MNEs and tax competition lead not just to inequality but constitute a case of global injustice. The provisions of the planned “two-pillar” reforms to global corporate taxation are then considered relative to the minimum conditions for background justice in taxation. Design/methodology/approach This paper is partly conceptual, based on relevant theoretical work in philosophy, and partly policy-focussed, based on an assessment of the OECD/G20 “two-pillar solution”. Findings The normative case for considering international tax competition as a global justice issue is developed, contrasting the cosmopolitan and non-cosmopolitan (“internationalist”) approaches. Three key minimum conditions for background justice in term of international taxation are established. This paper concludes that the two-pillar solution is likely to fail in global justice terms not because of its principles, which are sound, but because its redistributive scope is insufficiently great to have a major effect in correcting the inequality arising from tax competition. Originality/value This paper applies the philosophical concept of global justice to a specific issue in international business: MNE profit shifting and tax competition policy

Business · Competition (biology · Competition policy · Economics · Industrial organization · International trade · Microeconomics · Monopoly · Perspective (graphical · Profit (economics · Public economics · Tax policy · Tax reform · Corporate Taxation and Avoidance · Taxation and Compliance Studies · Taxation and Legal Issues · Ecology