ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2011
  • © Brno University of Technology, 2002-2011
  • © University of Latvia, 2002-2011
Tax Competition and Harmonization of Direct Taxation Within the European Union
Michal Sosnowski

ABSTRACT. In the article, the author describes the measures aimed at the creation of uniform regulations governing the corporate income taxation in the European Union countries in the context of international tax competition. He also discusses how taxation harmonization could limit such tax competition and affect the development of national economies and the competitive potential of enterprises. The conclusion is that any harmonization of direct taxation, especially done through harmonization of tax rates, might bring significant negative outcomes if it gave rise to increased taxation in the countries which joined the European Union only recently.

KEYWORDS: fiscal policies, tax competition, tax harmonization, relocation, EU countries.

JEL classification: F20, H25.

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Scholarly papers Transformations in Business & Economics
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