The tax foundation for companies that operate globally remains fairly similar to what it was a century ago, despite fluid tax borders created by digital technology and the growth of intangible assets such as patents and licenses. This timely report from fiscal expert Michael Keen illustrates the twin problems of “tax avoidance” and “tax competition” in a radically transforming global economy. getAbstract recommends this instructive article to corporate executives, government officials and others interested in the potentially harmful effects of tax shopping by multinationals.
In this summary, you will learn
- How multinationals exploit loopholes in the current tax system,
- How governments exacerbate the corporate practice of shifting taxes to favorable environments and
- What solutions might help create a more uniform tax system for multinationals.
About the Author
Michael Keen is a deputy director of fiscal affairs at the International Monetary Fund.