Copyright (c) 2008 University of Michigan Law School All rights reserved. http://law.bepress.com/umichlwps Recent documents in University of Michigan Legal Working Paper Series en-us Sat, 16 Aug 2008 03:56:15 PDT 3600 http://law.bepress.com/umichlwps/olin/art89 http://law.bepress.com/umichlwps/olin/art89 Thu, 14 Aug 2008 08:12:49 PDT Ten years ago the OECD published its report on Harmful Tax Competition: An Emerging Global Issue. This was followed by a series of concrete measures designed to limit some forms of harmful tax competition, such as preferential regimes in OECD countries and offshore tax havens. The OECD initiative has met considerable resistance and in some ways has fallen short of its goals. Nevertheless, this paper will argue that it has been a worthwhile effort and has achieved some measure of success. The paper will then go on to outline some future directions for the project. Reuven S. Avi-Yonah Taxation Taxation-Transnational http://law.bepress.com/umichlwps/olin/art88 http://law.bepress.com/umichlwps/olin/art88 Thu, 14 Aug 2008 08:09:18 PDT Until 1993, the United States led the rest of the developed world in strengthening residence-based world-wide corporate and individual income taxation. However, since 1994 this trend seems to have been reversed, at least in part, and similar developments are taking place overseas (e.g., in France and the UK). Thus, there seems to be a trend to reduce the scope of residence jurisdiction, while increasing the emphasis on source jurisdiction. If this trend continues, it seems likely that both traditional territorial countries like France and traditional world-wide countries like to UK and the US would move toward territoriality and decrease emphasis on their CFC rules. In the author's opinion, the reason for the trend to restrict CFC rules is political and economic, not legal: It is part of tax competition, specifically the competition to be the headquarters jurisdiction for MNEs. However, the author also believes that the US and other jurisdictions do not need to go down this road, because the solution to the competitiveness issue is collaboration, not more competition. Reuven S. Avi-Yonah Taxation Taxation-Transnational