Corporate Income Tax Competition in the Caribbean /

Motivated by the concern that corporate income tax (CIT) competition may have eroded the tax base, this paper calculates average effective tax rates to measure the impact of CIT competition, including the widespread use of tax holidays, on the tax base for 15 countries in the Caribbean. The results...

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Detalhes bibliográficos
Autor principal: Ben Nassar, Koffie
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2008.
Colecção:IMF Working Papers; Working Paper ; No. 2008/077
Acesso em linha:Full text available on IMF
Descrição
Resumo:Motivated by the concern that corporate income tax (CIT) competition may have eroded the tax base, this paper calculates average effective tax rates to measure the impact of CIT competition, including the widespread use of tax holidays, on the tax base for 15 countries in the Caribbean. The results not only confirm erosion of the tax base, but also show that CIT holidays must be removed for recent tax policy initiatives (such as accelerated depreciation, loss carry forward provisions, and tax harmonization) to be effective. These findings suggest that the authorities should either avoid granting CIT holidays or rely more on other taxes (including consumption taxes such as the value-added tax) in order to broaden the tax base.
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Descrição Física:1 online resource (22 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students