BEPS: Changing International Fiscal Standards and the Unchanging Fortunes of ‘Sustainable Development’

Kumar Ajay ()
Additional contact information
Kumar Ajay: School of Law, University of Bradford, Bradford, UK

The Law and Development Review, 2023, vol. 16, issue 2, 325-365

Abstract: The OECD led BEPS project attempts key changes to the international tax standards to limit harmful tax avoidance. First, it is found that calls for the BEPS project are based on arguments (illicit financial flows and tax competition) that are supported by limited evidence and hence may not offer much fiscal gain to the developing countries. Second, it is found that the BEPS project would, through information sharing, further limit the fiscal jurisdiction of capital importing states. Further it is found that tax competition, even if existing in a limited form, is a result of the international tax architecture and the externalities caused by it. In fact, it is seen that the MNCs actually reduce the inefficiencies created by this tax architecture and thereby reduce transaction costs. By agreeing to the BEPS agenda of information sharing the developing countries would be paying the cost of internalising the externality.

Keywords: Base erosion and profit shifting; cooperation; externality; fiscal jurisdiction; transaction costs (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/ldr-2023-0051 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:lawdev:v:16:y:2023:i:2:p:325-365:n:5

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/ldr/html

DOI: 10.1515/ldr-2023-0051

Access Statistics for this article

The Law and Development Review is currently edited by Yong-Shik Lee

More articles in The Law and Development Review from De Gruyter
Bibliographic data for series maintained by Peter Golla ().