Index

Abel, A. B., 117 Agglomeration forces, 31, 32, 52 Aldestam, M., 152, 153 Alesina, A., 56 Andersen, G., 47, 75 Andersson, K., 1, 8, 9, 37, 85, 237, 243 Anti-avoidance regime, 100 Anti-avoidance rules, 107–109, 114, 214 Antitrust case, 95 Appelman, M., 35 Ardolino, D., 159 Arnold, W.-D., 159 Art 293 EC, 191–192 Art 87 EC, 124, 125 Art 88 EC, 125, 127, 134, 137, 139, 146,

151, 158 Article 39, 166, 169, 178 Arts, W., 70 Asdrubali, P., 60 Asymmetric shocks, 62 Asymmetric tax competition, 49 Atkinson, A. B., 72–73, 75 Ault, H. J., 14 Average tax rates, 16–18 Avi-Yonah, R. S., 73, 75, 76 Bacon, K., 154 Baldwin, R. E., 31, 32, 52 Bank, S., 117 Banner-Voigt, E., 231 Barriers to labour mobility, 59 Basu, P., 36 Baudenbacher, C., 151 Baum, C. F., 36 Bell, K., 53, 231 Bellak, C., 30, 36 Bénassy-Quéré, A., 53 Benchmark tax system, 125, 126, 129,

146, 148, 153 Beneficial owner, 222, 224, 234 Berghofer, M., 160 Bertola, G., 47 Besley, T., 51 Bevan, A., 24

Bieber, R., 231, 232 Bilateral double-taxation conventions

(DTC), 153 Bilateral effective average tax rates, 18 Bilateral measures of tax coordination, 9 Bilateral trade flows, 25 Bittlingmayer, G., 95, 117 Black, D., 65 Blocking effect, 137, 138 Blomström, M., 23 Bo, H., 96, 118 Boeri, T., 45, 59, 60, 62 Böheim, R., 56 Bolkestein Report, 35, 37 Borck, R., 74 Bordignon, M., 15 Borensztein, 36 Borjas, G., 55 Bosal Holdings case, 18 Bovenberg, 49 Brainard, S. L., 25 Brennan, G., 31 Breuss, F., 31 Breyer, E., 56 Brøchner, J., 32, 33 Brokelind, C., 189, 233 Brueckner, J., 11, 13, 51, 62 Brusco, S., 15 Buch, C., 25 Buchanan, J., 31, 50 Bucovetsky, S., 49 Budgetary transfers, 133, 134, 156 Budget deficit, 96 Burbidge, J., 52 Busch, K., 79 Business taxation, 86, 115, 124 Callies, Ch., 231, 232 Capital Export Neutrality (CEN), 88,

97, 106 Capital gains, 3, 50, 51, 88, 91, 104, 105 Capital gains taxation, 50 Capital Import Neutrality (CIN), 88, 100,

106, 108, 114, 129

24 Index8

Capital-import-neutrality, 129 Capital income, 33, 37, 62, 63, 88, 91, 95,

117, 239, 241, 245, 246 Capital income tax, 33, 62, 63, 117 Capital mobility, 33, 55, 61, 239 Capital outflow, 3, 49 Capital supply elasticity, 62 Capital tax elasticity, 62 Carkovic, M., 23 Carlsson, M., 95, 117 Carruth, A., 117 Case law, 165–7, 170, 189 Castles, F., 56, 70 CCCTB, 97, 99 Central and East European Countries

(CEECs), 11, 242 Central government, 56, 132, 133,

154, 156 Centralization, 2, 5 Centralization of social security, 2 Centralization of tax legislation, 2 CFC regimes (Controlled Foreign

Companies), 3, 9 Chakraborty, C., 36 Cheffins, B., 117 Chirinko, R. S., 94, 117 Choe, J. I., 36 Chojnacka, Z., 158, 159 Chowdhury, A., 36 Clausing, K. A., 26 Closed economy, 2–3 Cnossen, S., 31, 63 Code of Conduct on Business Taxation,

124, 127 Collecting taxes, 6, 48 Common consolidated corporate tax base,

85, 100, 116 Compensation hypothesis, 51 Compliance costs, 9, 34, 93–94, 96–97,

103, 109–110, 112, 114–116 Compulsory redistribution, 47 CON, Capital Ownership Neutrality, 88 Consolidation, 100, 114 Consumption taxation, 117, 239 Controlled Foreign Company taxation, 52 Convergence criteria, 245 Convertible debt instruments, 228 Cordewener, A., 209–211, 234 Core-periphery divide, 32 Corporate income tax, 11, 18 Corporate income tax competition, 11

Corporate income tax rates, 11, 18, 23, 32, 240

Corporate profit tax, 23 Corporate restructuring, 98 Corporate taxation, 35, 97, 111, 112,

240, 245 Corporate tax burden, 14, 17, 25 Corporate tax rates, 9, 23, 50, 51, 52, 86,

87, 89 Corporation tax, 131–132, 198, 200,

218–220, 222–223, 225, 230, 233, 244

Corridor model, 79, 80 Cost of compliance, 98 Cost of social protection, 47 Craig, P., 231, 232 Credit risk, 90 Credit system, 19 Cremer, H., 63, 74 Cross-border investments, 7, 94 Cross-border loss offset, 34, 40, 98 Cross-border loss-relief, 177, 244 Cross-border tax obstacles, 116, 117,

241, 246 Cross-ownership, 61 Cul-de-sac explanation, 165, 185 Cultural barriers, 51, 59, 86, 115 Dahlberg, M., 8, 165, 186, 188, 243 Debt-equity ratio, 90 De Búrca, G., 81, 231–233 Decentralization of tax policy, 5 De Cordt, 210 Deductibility of business expenses, 168 Deduction of foreign losses, 107, 114 Deduction system, 18–19 De Haan, 16 Delsen, L., 74 DeMello, L. R., 36 De-minimis-aid, 140–142 De-minimis-Regulation, 141 Democratic legitimacy, 2, 158 DeMooij, R. A., 24, 30, 34 Depreciation Allowances, 101 Depreciation method, 20, 101 Deregulation, 3 Derogating provision, 177 Desai, M. A., 117 Devereux, M. P., 11, 13, 17, 18, 19, 20,

35, 36 Dickerson, A., 117

Index 249

Direct taxation, 165 Discount factor, 18 Discrimination analysis, 165–167,

171–172, 174, 184, 187 Dispersyn, M., 79 Dispute resolution mechanism, 108 Distaso, M., 224, 229, 233, 234, 235 Distributed profits, 18, 197, 218, 220,

221, 225, 233 Domar, E., 61 Domestic savings, 23 Dorubantu, 24 Double non taxation, 129, 203, 208,

215, 229 Double taxation agreements, 17, 18, 19, 100 Double taxation treaty, 168, 199, 218, 219 Double tax conventions, 2, 7, 128 Double tax treaties, 8, 107, 215, 231 Double taxation, 85, 107 Dreher, A., 51, 52, 54, 59 Drèze, J. H., 74 Duncan, J., 231 Early retirement, 48 Eberhartinger, E., 1, 8, 9, 213, 231, 237, 244 Eckordt, M., 80 Economic integration, 3 Economic lifetime, 101, 103 Economic rate of depreciation, 18 Economies of scale, 50 EC State Aid control, 122, 127, 134–135 EC State Aid Prohibition, 126–128,

140–141 EC State aid review system, 139 EC State Aid rules, 8, 122–124, 127, 129,

130, 137, 138, 140, 146–147, 150, 243

EC State aid surveillance procedure, 148 EC Treaty, 165–7, 168–9, 172 Ederveen, S., 24, 30 Edmiston, K. D., 95, 117 Educational spending, 53 Edwards, J., 50 Effective average tax rates (EATRs),

16, 18 Effective company tax rates, 89 Effective marginal tax rates (EMTRs), 16 Effective tax rates, 11, 15–17, 30, 51, 85,

89, 91, 95 Egger, P., 26 Eicker, K., 233, 234 Eilmansberger, Th., 161

Ellison, N., 75 Emerson, M., 45 Enchelmaier, 210, 211 Energy taxation, 122, 126, 145, 147, 158 energy Tax Rebate Act, 140, 159 Enhanced Cooperation Agreements

(ECA), 14, 15 Enlarged Europe, 11 Environmental taxes, 4 Epiney, 231, 232 Esping-Andersen, G., 47, 70 Estrin, S., 24 EU’s Code of Conduct, 14 EU integration, 8, 59 EU-parent-subsidiary directive, 17 Euro, 2, 3, 72, 73, 169, 245 European Commission, 34, 89, 93 European Court of First Instance, 127–128 European Court of Justice, 165, 183, 184 European Economic and Monetary Union

(EMU), 1 European Economic Area, 77 European integration, 45, 78, 81 European Parliament, 5, 9, 125, 234 European Social Fund, 80 European social policies, 80, 81 European State aid control system, 149 European State Aid Prohibition, 147,

149, 243 European State aid rules, 121, 146, 149 European State aid system, 139, 140 European system of national and regional

accounts (ESA95), 237 European Union, 1, 85 European welfare states, 72, 73, 74, 242 European welfare systems, 62 EU-state aid legislation (art. 87 EC), 8 EU structural funds, 33 Exchange controls, 3 Exchange rate, 18 Exemption method, 129–130, 153–154,

192, 203–204, 206–207, 219 Exemption of debt-claims, 228 Exemption system, 19, 26, 219 “Exit” option, 13 Expenditure Tax, 91 Factor market integration, 69, 73–76 Factor mobility, 45, 48 Falkner, G., 80 FDI decisions, 16–17 Federal constitutionalism, 131

250 Index

Federal taxes, 5 Feld, L. P., 15, 37, 234 Ferrera, M., 47 Financial instruments, 8, 213, 214,

228, 230 Finkenzeller, M., 36 Firm-specific advantages, 36 Fiscal aid, 123 Fiscal competition, 45, 53, 69, 73 Fiscal federalism, 5 Fiscal leakage effect, 56 Fiscal policy, 8, 46, 52, 53, 97 Fischel, W., 49 Flat rate countries, 92 Flat tax, 23, 24, 90, 91, 93, 116, 168, 169,

194, 203, 243 Flat tax rate, 168, 169, 194, 203 Flat tax systems, 91 Foreign direct investment, 6, 11, 95, 242 Foreign investments, 24, 90 Foreign ownership, 3, 52 Foreign tax regimes, 129 Formulary apportionment (FA), 37 Forward-looking effective tax rates

(FETRs), 15, 16 Frank, L., 161 Free factor mobility, 45, 46, 48, 49, 57 Free movement of capital, 5, 87, 170,

172–176, 184, 185–189, 204, 231 French, K., 52 Frenkel,M., 26 Fuchs, M., 77 Fullerton, D., 16 Fundamental freedoms, 165–7, 243–4 Full Harmonisation, 32, 34, 76, 78, 79, 81 Full tax harmonisation, 14, 32, 34, 37 Funded systems, 55, 56 Gabe, T., 53, 162 Gahvari, F., 63 Garratt, 5 Garrett, G., 59 Gassner, W., 162, 164, 210, 212 Gelissen, J., 70 General tax principles, 98, 99, 100, 114 Genschel, P., 13, 35 Gèrard, M., 34 Ghauri, P., 6 Gilly, 175, 182, 187, 189, 191, 194, 199,

201, 202, 209, 210 Gläser, L., 231 Glazer, A., 60

Globalization, 194 Global tax coordination, 33 Gocke, 211 Gordon, R., 16 Gorter, J., 24 Gosch, 211, 212 Government budgets, 239 Government expenditures, 53, 65, 96 Government spending, 2, 49, 53, 54 Grabowski, M. H., 18 Griffith, R., 11, 12, 15, 16, 17, 18, 19,

36, 51 Group Taxation, 98, 108, 109, 189, 194 Gunter, B. G., 74 Gutmann, 210, 211 Haag, M., 231, 232 Hansen, H., 36 Hansson, A., 8, 45, 54, 242 Harmonization, 7, 37, 114, 149, 242, 244 Hartman, R., 117 Hassett, K., 95, 117 Hatton, T., 60 Head, K., 25, 30 Health care systems, 72 Heien, T., 69, 74, 75 Helminen, M., 226, 227, 231, 233,

234, 235 Henley, A., 117 Hicks, A., 59 Higher communication, 25 High-income countries, 31 High-skilled labour, 55, 56 Hindriks, J., 56 Hines J:r, 117 Hirschman, A. O., 13 Hofstätter, M., 209 Hohenwarter, D., 210, 211 Homburg, S., 56 Home-bias, 51 Home-country size, 24–25 Home country tax law, 18 Horizontal tax competition, 13–15 Host country tax law, 18 Host-market size, 24–25 Hoyt, W., 65 Hubbard, G. R., 17, 117, 154 Huizinga, H., 52 Hybrid cross-border finance, 213, 244 Hybrid finance, 213, 214, 225, 227, 229 Hybrid financial instruments, 8, 213, 230 “Hybrid”-instruments, 214

Index 251

Immigration, 55, 56 Immobile factors, 7, 61, 73, 80, 239 Immobile resources, 61 Implicit tax rate, 37, 239 Imputation system, 88, 117, 179, 180,

183, 188 Inbound investment, 107 Income redistribution, 4 Income tax system, 37, 91, 117 Independent fiscal policy, 8, 46, 52, 53 Independent jurisdictions, 12–16, 35,

49, 50 Indirect tax measures, 127 Inflation rate, 18, 25, 101, 105 Information barriers, 59 Information costs, 25 Inheritance taxation, 174, 175 Intangible assets, 103 Interest, 176, 221–2, 224 Interest and Royalties Directive, 216,

221, 222 Interest payments, 18, 19, 22, 215, 222,

229, 230, 231, 235, 244 Internal market, 8, 35, 48, 100, 167, 194,

204, 231, 245 International, tax law, 18 International Social Survey Programme

(ISSP), 75 Intertemporal consumption decision, 91 Investment decisions, 3, 6, 16, 17, 85, 88,

94, 100, 107, 116, 243 Investment promotion agencies (IPAs), 23 Investments, 2, 3, 7, 16, 17, 24, 36, 87–92,

94, 108, 116, 123, 173, 214, 243 Inward FDI, 23, 95 Inward foreign direct investment, 6 Jacobs, A. G., 140, 144, 145, 159, 161, 162 Jaeger, Th., 151, 155, 159 Joint Transfer Pricing Forum, 245 Jorgensen, 94 Jorgenson, D., 117 Jouissance rights, 214, 227, 228 Juridical double taxation, 181, 182, 188 Keen, M., 13, 36, 50, 53, 74 King, 16 Klemm, A., 11, 12, 15, 51 Knowledge-based economy, 45, 85 Kofler, G., 154, 210, 211, 212 Kokko, A., 23 Kolmar, M., 56

Krempa, S., 233 Krogstrup, S., 15, 36 Krugman, P., 31, 32, 52 Krugstrop, 52 Kuhnle, S., 75 Labour costs, 24, 25, 26, 30, 239 Labour mobility, 46, 51, 55, 59, 60 Labour taxation, 63 Labour taxes, 239 Labour tax rates, 51 Labour unions, 48 Lang, M., 8, 186, 187, 191, 209, 210,

211, 244 Langoth, B., 210 Larking, B., 231 Lechner, 210, 212 Leibfried, S., 69, 76 Leibrecht, M., 7, 11, 30, 36, 242 Lensink, R., 96, 118 Levelling the playing field, 31, 35 Leviathan behaviour, 32 Levine, R., 23 Lewis, J., 70 Lim, E.-G., 36 Lipponer, A., 25 Lisbon accord, 1 Lisbon agenda, 74, 100 Lisbon agreement, 88 Lisbon objectives, 114, 214, 239,

245, 246 Lisbon Strategy, 45 Liu, X., 36 Living standard, 242 Local governments, 13, 56, 61, 63, 64 Location factors, 26, 30, 36 Location specific agglomeration rents, 31 Lock-in effect, 37 Long-term care, 80 Lopez-Mata, R., 162 Low-income countries, 31 Low income earners, 239 Low-skilled labour, 55, 56, 63 Low-tax countries, 46, 52, 60, 239 Luja, R., 130, 154, 155 Maastricht Treaty, 186 Macro-economic stability, 243 Manduca, A., 236 Marchand, 53, 74 Marginal tax rates, 16, 91 Market know-how, 25

252 Index

Marks & Spencer case (C-446/03), 177–179, 183, 185

Markusen, J. R., 17 Mattsson, N., 186 Mátyás, L., 26 Mavrotas, G., 36 Mayr, K., 56 McIntyre, M., 153 McLure, C., 62 Meerpohl, J., 232 Mendoza, E., 32, 50, 62–63 Metcalf, G. E., 95 Method of depreciation, 18 Mezzanine finance, 214 Mieszkowski, P., 31, 46, 48 Migration, 56, 60, 74, 76–77 Minimum financial social rights, 79 Minimum pensions, 79 Minimum rate, 63, 114 Minimum tax rates, 13, 34, 63 Mitchell, D., 59 Mobile capital, 11, 242 Mobile factors, 73 Mobile households, 49 Mobile productive factors, 48 Mobile tax, 13–14, 31, 50, 246 Mobile tax bases, 13–14, 31, 33, 50, 246 Mobility of labour, 54 Mobility of tax bases, 5 Model Tax Convention (MTC), 109 Monetary policy, 97, 105 Monnikhof, E., 25 Most favored nation (MFN)

treatment, 195 Most-favored-nation treatment,

195–196, 203 Mudd, S., 95 Multilateral investment agreement, 96 Musgrave, 12, 34 Mutual Assistance Directive, 205 Nair-Reichert, U., 36 National equality tests, 126–127 National expenditure policy, 35 National recovery claims, 144–145 National social security schemes, 78 National tax policies, 116, 245–246 National tax sovereignty, 31, 130–132 National welfare state, 46, 59 Navaretti, 25 Net wealth taxes, 36 New economic geography, 31

New EU member states, 17 Nicodemes, 11, 33–34, 52 Non-cooperative tax setting, 12–14 Non deductibility of interests paid, 18 Non-discrimination clauses, 196,

200, 245 Non-discriminatory restrictions, 176 Non-resident companies, 171, 180,

197–199 Non-resident taxpayer, 169–170, 173 Oates, W. E., 36 Oats, E., 56 OECD model convention, 129–130,

206–209, 244 OECD Model Tax Convention, 109,

181, 224 Old-age pensions, 48 Oliver, 234 Olofsdotter, K., 52, 54 One-stop-shop approach, 111 Opaque entities, 111 Open Economy, 2–3, 94 Open Method of Coordination (OMC),

76, 80 Optimal tax structure, 5 Orr, L., 56 Osberg, L., 69, 74–75 Outbound investment, 107 Overall tax rate, 18–19 Overtaxation, 193 Oxelheim, L., 6, 9 Panayi, Ch., 130 Parent/subsidiary directive

(90/435/EEC), 112 Parikh, A., 24 Parry, I. W. H., 32, 62 Partial harmonisation, 63, 76, 79–81 Partial tax harmonisation, 14,

34–35, 63 Participation bonds, 214, 228 Pauly, M., 60 Pay-as-you-go, 55–56 Payroll tax, 86 Pemberton, J., 56 Pennings, F., 76–78 Pestiau, 74 Pestieau, P., 63 Pfaffermayr, M., 26 Pierson, P., 69, 76 Pinto, C., 42

Index 253

Plansky, P., 210–211 Policy learning process, 80 Policy of regulation, 35 Political risk, 24–26, 91 Pooling method, 101, 103 Portfolio investment decisions, 16 Potacs, M., 159 Poterba, J., 52, 56 Prechal, S., 216 Preferential tax regimes, 124, 243 Preferential tax treatment, 15 Price, 25, 45, 60, 94–95 price transparency, 6 Primary and secondary EU Law, 2, 7 Privatisation revenues, 24–26 Procedural obligations, 141 Producer prices, 25 Productive spending, 74 Profit participation loans, 214, 228 Property rights, 25, 95 Public consumption, 53–54, 61 Public expenditure, 3, 6, 35, 63, 246 Public expenditure programs, 3, 6, 35 Public finances, 35, 69, 105 Public spending, 56–57, 180 Public transfers, 47, 54 Quasi-restriction, 179–180 Quinn, D., 51 Race to the bottom, 51–52, 74, 124, 245 Race to the bottom for taxes, 240 Rand, J., 11 Randzio-Plath, C., 13 Razin, A., 51, 55–56 Real estate taxes, 36 Real interest rate, 18 Real pre-tax financial rate of return, 18 Real unit labour costs, 25–26 Redistribution, 46–49, 53–61 Redistributive taxes, 56 Regional capital income tax

coordination, 33 Regional coordination, 46, 61–62, 242 Regional integration, 61 Regional tax autonomy, 130–132,

134, 147 Regulatory uncertainty, 95 Relocation costs, 51 Remiche, 210 Repplinger-Hach, R., 160

Residence taxation, 107, 181–182, 203, 206–207

Restriction approach, 171, 178, 183 Retained earnings, 18, 90–91, 93 Retroactive approval, 140, 145–146 Retroactive authorization, 145–146 Ribar, D., 56 Riikjärv, M., 233 Ringfencing, 14, 105, 115 ,154 Risk insurance, 47, 65, 69 Ritcher, 56 Rodrik, D., 11, 59, 73–74 Roll-over relief, 105 Römisch, R., 16 Ross, M., 152 Rossi, P., 150, 152 Royalties, 221–224, 226–230 Ruding Committee, 37 Ruffert, M., 231–232 Rüffler, F., 160 Rule-of-reason doctrine, 176–177, 184 Russo, R., 224, 229 Sadka, E., 55 Safety-net, 65 Savings, 2–3, 23, 137, 173 Scharpf, F. W., 80–81 Schindler, 210 Schnitger, A., 234 Schön, W., 209, 211 Schönfeld, J., 234 Schuch, J., 209–211 Secondary EU law, 2, 7, 213, 244 Selective tax measure, 125 Selectivity principle, 156 Selectivity test, 125, 127 Sévon, L., 167 Shift of tax burden, 7, 33 Silent partnerships, 214, 228 Simonart, 210 Single compliance, 109–110 Single European Market, 121 Sinn, H. W., 36, 46, 48–49, 74 Slemrod, J., 11, 51 Smeeding, T., 69, 74–75 Social exclusion, 57, 74 Social inclusion, 75, 80 Social infrastructures, 74 Social insurance funds, 70 Social policy integration, 69, 81 Social policy objectives, 74, 242

254 Index

Social protection expenditures, 57, 59, 64 Social protections, 45–47, 57, 59, 70 Social security contributions, 55, 86, 91,

194, 237 Social security expenses, 193 Social security system, 77, 173–174 Social snake model, 79 Social spending expenditures, 58, 65 Social standards, 69, 79, 81 Social transfers, 74 Soft law, 206 Sørensen, P. B., 33, 62 Source taxation, 201, 207 Spaak Report, 122 Special tax provisions, 18 Spengel, C., 16, 36 Stability Pact, 245 Ståhl, K., 186 Standard tax competition, 49, 51 Standstill-clause, 143, 243 Staringer, C., 209 Stasavage, D., 96 State Aid Action Plan, 121 State aid control, 121–122, 134–135 State aid measures, 121, 123 State Aid rules, 8, 121–125, 127–135,

146–147 Statutory corporate income tax rate,

240, 245 Statutory corporate tax rates, 86, 87, 99 Statutory tax rates, 11, 34, 51, 241 Sterken, E., 96 Stigler, G. J., 56 Subject-to-tax clauses, 129, 214 Supranational tax law, 18 Surrey, St., 151 Sutter, F., 8, 243 Swank, D., 169, 183–184, 199 Swedish Council for Advance Tax

Rulings, 183–184 Swenson, D. L., 36 System, 4, 8–9, 34–35, 55–56, 77 Tailor-made tax solutions, 6 Tanzi, V., 48–49, 69 Taxable income, 105, 168–170, 172, 222 Tax avoidance, 176, 181, 184 Tax base, 4–6, 13–14, 49–52, 85–89,

101, 116 Tax burden, 11–17, 24–25, 88, 201, 239 Tax capacity, 105 Tax code, 14, 90

Tax collections, 48 Tax competition, 6–8, 11–15, 23–25,

30–35, 49–52, 62–63 Tax coordination, 31–33, 149 Tax credit, 173–174, 197, 222 Tax debt, 122–123 Tax-deductible, 214 Tax depreciation, 103, 114 Tax enforcement, 15, 34 Tax exemptions, 128, 143, 220 Tax exemptions of cross-border-

income, 154 Tax exporting, 52, 61 Tax free allowance, 168–169 Tax harmonisation, 13–14, 31–32, 34–35,

76, 81 Tax haven, 15, 129 Tax incentives, 23, 243 Tax-induced capital flow, 49 Tax instruments, 1, 12, 15, 23, 63 Tax jurisdictions, 107, 132, 181–183 Tax obstacles, 1–2, 94, 104, 116–117 Tax on labour, 239 Tax parameters, 13–14, 19, 23 Tax planning, 9, 16 Tax policy coordination, 62, 150 Tax policy instruments, 5 Tax preferences, 14 Tax quotas, 15–16 Tax-rate elasticities of FDI, 24 Tax rate harmonization, 114 Tax rate on dividend payments, 18,

19, 22 Tax rates, 16–19, 23, 30–33, 50–52,

87–89, 91, 93 Tax reform, 18, 94 Tax revenue, 5, 12, 31–34. ,86–87 Tax revenue collections, 53 Tax structure, 95–96, 119 Tax systems, 8, 9, 13, 15, 34, 35 Tax transparency, 3, 6, 98, 243 Tax treaties, 128, 147, 173–174, 181–182,

191, 195–209 Tax treaty law, 206–207 Tax treaty provisions, 195–196, 206–207 Tax wedge, 89, 239 Terra, B., 186 Territoriality taxation (‘source-country

taxation’), 181 Tesar, L., 32, 50, 52, 63 The Code of Conduct on Business Taxation,

124, 127

Index 255

The Interest and Royalties Directive, 8–9, 214–216, 221–224, 226–230

Theories of preferential tax regimes, 36 Theories of tax exporting, 36 Thin capitalization, 235 Third-country relations, 204–205, 244 Tiebout, C. M., 36, 49–50, 62 Tiebout hypothesis, 50 Tomsett, E., 217, 233 Torregiani, S., 233 Total taxes, 238 Total tax ratio, 237 Trade barriers, 87 Trade costs, 31 Transfer payments, 33, 133 Transfer policies, 46, 61, 63–64 Transfer pricing, 34, 85, 98, 107, 113–114,

194, 245 Transparent entities, 110–112 Treaty of Amsterdam, 14 Treaty of Nice, 14–15 Treaty of Rome, 2, 78, 121–122, 126,

150, 245 Triple-indexed-Gravity-model, 26 Trubek, D. M., 80 Tulvig, E., 233 Unfair tax competition, 14, 115, 124, 129 Urban economics, 60 U-turn explanation, 166, 185 Vajda, Ch., 162 Valev, N., 95 Van Ark, B., 25 Van der Hoeven, R., 74 Van der Linde, R., 210 Van Thiel, S., 210 VAT, 2, 5, 91, 93, 111, 113, 239, 241

VAT compliance costs, 93 Venables, A. J., 25 Verbist, G., 72 Vertical tax competition, 13–14 Volkerink, B., 16 Voluntary redistribution, 47 Wage dispersion, 73–74 Wattel, P., 186 Wealth tax, 170, 195–196 Weiner, J. M., 14, 34 Weinhold, D., 36 Welfare cost, 3, 47, 62 Welfare shoppers, 53–55 Welfare state regimes, 53, 57 Welfare states, 7–8, 45–48, 53–57, 59–60,

64, 69, 81, 242–244 Welfare systems, 4, 59, 78 Wellisch, D., 49 Werner, I., 52 White, M., 49, 149 Wildasin, D. E., 12–13, 55–57, 60, 73–74 Wilhelm, M., 56 Williamson, J., 60 Wilson, J., 12–13, 48–49, 55, 57, 73 Winner, H., 1, 3, 41, 51 Wishlade, F., 154 Withholding tax, 17–19, 222, 225, 228 Withholding tax rate, 17, 19, 201,

219, 222 Wittendorff, J., 231 Work incentives, 239 World-wide taxation, 181, 194 Zanotti, E., 232–233 Zehetner, 209 Zeitlin, J., 80 Zodrow, G., 13, 31–32, 36