The objective of this thesis is to analyse the relationship between international taxation and developing countries. The main idea is to examine this relationship through arguments that challenge the current legal debate that has described their interest as capital importers of foreign direct investment. Globalisation has changed the economic relations between developed and developing countries. The evolution of the economic aspects as well as tax policies implemented during the process of globalisation provides the background necessary to understand the increased importance of international taxation and the participation of developing countries in the global economy. The hypothesis tested here addresses the question whether the dichotomy between developing and developed countries and their characterisation as capital importers and capital exporters still provides an appropriate basis for the legal debate on international taxation in the context of globalisation. To approach this question, the behaviour of international flow of capital will be assessed in order to provide an overview of the economic relations among these countries. To perform this study, initially the meaning of globalisation and international taxation are explained in order to build up the framework of this thesis; secondly, the current debate on harmful tax competition is examined to put in evidence the problem addressed in this thesis; thirdly, an analysis of the international flow of capital is performed to identify new premises that could update the legal debate; fourthly, based on the profile of the international flow of capital, the phenomenon of capital flight is addressed. Fifthly, having in mind the difficulty in taxing capital flight, taxation of portfolio investment is examined. Based on the arguments raised, the legal debate is updated demonstrating the higher importance of double taxation over tax avoidance and evasion in the recent past. Finally, considering the increased relevance of international tax avoidance and evasion, instruments available for exchange of information are analysed, and their effectiveness to curb capital flight from developing countries.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:550766 |
| Date | January 2011 |
| Creators | Calich, Isabel |
| Publisher | London School of Economics and Political Science (University of London) |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Source | http://etheses.lse.ac.uk/350/ |
Page generated in 0.0025 seconds