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Free Competition in EU: An Exploratory Study about Tax Benefits to Foreign Investment as a Distortion Measure of Free Competition

Author

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  • Maria do Rosario ANJOS

    (Lusofona University of Porto; researcher in IJP - Portucalense Institute of Legal Studies, Portugal)

  • Maria Joao MIMOSO

    (Portucalense University; researcher in IJP - Portucalense Institute of Legal Studies, Portugal)

Abstract

This is an exploratory and comparative study about the political and institutional constraints of tax harmonization in EU and its effect on free competition. Objectives: to explore and compare the different tax systems in EU members for answer three questions: there are or not a disloyal competition resulted from the differences in tax between EU countries? Which is the impact in foreign investment in EU countries? Why EU do not have more tax harmonization to fight against tax disloyal competition between members States? Methodology: we used the comparative study about income taxes in several EU countries and the relation to GDP, as well the deductive method to analyze the results we find and some reference studies on the subject. Results: the principal reason for less tax harmonization is the great advantages for the biggest and strongest economies in EU. Secondary, they did and still do use the tax system for introduce a new way of disloyal and dissimulated competition between countries members. European governments don«t want tax harmonization. Some of them has used tax benefits to catch more foreign investment, economic growth and avoid an effective free commercial competition.

Suggested Citation

  • Maria do Rosario ANJOS & Maria Joao MIMOSO, 2021. "Free Competition in EU: An Exploratory Study about Tax Benefits to Foreign Investment as a Distortion Measure of Free Competition," International Investment Law Journal, Societatea de Stiinte Juridice si Administrative (Society of Juridical and Administrative Sciences), vol. 1(1), pages 38-48, February.
    • Handle: RePEc:sja:journ1:v:1:y:2021:i:1:p:38-48
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    References listed on IDEAS

    as
    1. Alesina, Alberto & Perotti, Roberto, 1996. "Fiscal Discipline and the Budget Process," American Economic Review, American Economic Association, vol. 86(2), pages 401-407, May.
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    More about this item

    Keywords

    competition; foreign investment; tax law harmonization; state aid.;
    All these keywords.

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

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