Document Type
Article
Publication Date
12-1-2002
Abstract
Cross-border tax arbitrage arises where a transaction is subject to two or more countries’ differing tax regimes. Conflicts between the tax rules create unique opportunities for the parties to engage in profitable tax planning – opportunities that would not be available if the transaction occurred entirely domestically in one of the countries. These opportunities have been a growing feature of the multi-jurisdictional business world and have raised issues concerning whether and how countries, such as the United States, should respond. This Article examines cross-border tax arbitrage in the context of both domestic tax policy and of other international tax issues, and considers potential responses. It proposes an analytic framework for cross-border tax arbitrage based on specific case studies. The Article concludes by proposing a balancing test for determining the appropriate treatment of specific instances of cross-border tax arbitrage.
Recommended Citation
Diane M. Ring. "One Nation Among Many: Policy Implications of Cross-Border Tax Arbitrage." Boston College Law Review 44, (2002): 79-176.
Included in
Banking and Finance Law Commons, Business Organizations Law Commons, Commercial Law Commons, Contracts Commons, Economics Commons, Law and Economics Commons, Organizations Law Commons, Taxation Commons, Taxation-State and Local Commons, Taxation-Transnational Commons