Research report 2012 - Max Planck Institute for Tax Law and Public Finance
Bargaining over tax information exchange
Finanzwissenschaft (Prof. Dr. Kai A. Konrad)
SummaryThis paper sheds light on the recent G20 Crackdown on tax havens. It empirically studies recent treaty signings between tax havens and OECD countries as the outcome of a bargaining process over treaty form. Havens can decide not to sign an agreement, to sign a tax information exchange agreement or to sign a double taxation convention. Our analysis shows that havens are less likely to cooperate the higher their economic clout, while the potential of economic and political defensive measures can effect haven cooperation positively.