This paper’s foundation is the global character of (harmful) tax competition. While this phenomenon’s global existence is widely recognised alongside the global endeavours to fight against it, the situation in Rwanda seems not to be the same. That makes up the main purpose of this paper which aims to show how (harmful) tax competition constitutes a global issue, but with little attention under Rwandan law. In that regard, this paper calls the attention of Rwandan policymakers, academics, and researchers to dive deep in the matters of tax competition for the sake of making Rwanda stand on the safe side. This paper plays a role of a wake-up bell to step in other legal systems’ concerns in the regulation of (harmful) tax competition.
Harmful tax competition is a topic that is globally and hotly discussed. For the past three decades, research on this topic consistently increased. Globally, states have been engaged in different projects aiming at regulating that phenomenon. Because of its international character, most of, if not all, the successful initiatives were undertaken under the auspices of regional organizations. The European Union and the Organization for Economic Cooperation and Development are good examples. This paper studies the current regulation of harmful tax competition in the East African Community. It shows how the EAC has not yet developed a sufficient regulatory approach against harmful tax competition. It also reflects on the challenges thereto related and proposes some actions that EAC needs to undertake to revamp the regulatory situation of harmful tax competition. In consideration of the harmful effects of harmful tax competition, this paper instigates the EAC partner states to stop disregarding harmful tax competition and recommends adopting a Code of Conduct against harmful tax competition in the EAC.
Tax competition is a topic that is often discussed in the forums of international tax lawyers. Not only lawyers but also economists, politicians, and other scientists discuss tax competition topics. One of the elements that characterize such discussions is the polarity of the key aspects of tax competition. Such polarities are the focus of this article, which pulls together disparate discussions on tax competition polarities. This article adds to the existing knowledge some key elements to consider while studying this field. In that context, this article claims that the study of tax competition should not be done in a one-way approach, rather in a two-way approach.
This paper is based on the endless discussions over tax competition. While the discussions over harmless tax competition and harmful tax competition are not yet closed, one of the key issues that adds on is the distinctive boundaries between the two. That is the focus of this paper, which suggests that, with respect to State tax sovereignty, any tax competition done to attract genuine investment is harmless. Equally is a tax competition whose tools do not make a distinction between residents and non-residents. In contrast, tax competition with ring-fenced tools and tax competition that aims at poaching other countries' tax bases look prima facie harmful. Without claiming having exhaustively drawn the boundaries, this paper contributes to the discussions over the distinction between harmless and harmful tax competition by shedding the light on some elements distinguishing harmless from harmful tax competition.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.