Taxation of Financial Capital in a Globalized Environment: The Role of Withholding Taxes

Howell Zee

National Tax Journal, 1998, vol. 51, issue 3, 587-99

Abstract: This paper assesses the merits and limitations of raising withholding taxes at source as a policy measure to address the increasingly serious problem of tax evasion connected with cross-border income flows from portfolio investment in the present globalized environment. Such taxes are effective in capturing passive income flows in an administratively simple way, but generate a number of distortions and give rise to international revenue redistribution and other spillover effects. On balance, however, the paper concludes that raising withholding taxes should be seriously considered in a multilateral framework to combat tax evasion.

Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1086/NTJ41789354 (application/pdf)
https://doi.org/10.1086/NTJ41789354 (text/html)
Access is restricted to subscribers and members of the National Tax Association.

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:ntj:journl:v:51:y:1998:i:3:p:587-99

Access Statistics for this article

National Tax Journal is currently edited by Stacy Dickert-Conlin and William M. Gentry

More articles in National Tax Journal from National Tax Association, National Tax Journal Contact information at EDIRC.
Bibliographic data for series maintained by The University of Chicago Press ().