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Harmonization of Corporate Tax Systems and its Effect on Collusive Behavior

Author

Listed:
  • Schindler, Dirk

    (Meteorological Institute, University of Freiburg)

  • Schjelderup, Guttorm

    (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)

Abstract

We study how harmonization of corporate tax systems affects the stability of international cartels. We show that tax base harmonization reinforces collusive agreements, while harmonization of corporate tax rates may destabilize or stabilize cartels. We also find that bilateral and full harmonization to a common standard is worse from society’s point of view than unilateral harmonization to a minimum tax standard.

Suggested Citation

  • Schindler, Dirk & Schjelderup, Guttorm, 2007. "Harmonization of Corporate Tax Systems and its Effect on Collusive Behavior," Discussion Papers 2007/8, Norwegian School of Economics, Department of Business and Management Science.
    • Handle: RePEc:hhs:nhhfms:2007_008
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    References listed on IDEAS

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    Cited by:

    1. Denvil Duncan & Ed Gerrish, 2014. "Personal income tax mimicry: evidence from international panel data," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(1), pages 119-152, February.
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    3. Elisabeth Bustos Contell & Salvador Climent-Serrano & Gregorio Labatut-Serer, 2018. "The evolution of the tax burden for EU companies," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 12(4), December.
    4. Tim Friehe, 2014. "Tacit collusion and liability rules," European Journal of Law and Economics, Springer, vol. 38(3), pages 453-469, December.
    5. Florian Baumann & Tim Friehe, 2013. "Tax Evasion and Tacit Collusion," Public Finance Review, , vol. 41(5), pages 633-657, September.

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    More about this item

    Keywords

    Corporate tax systems; tacit collusion;

    JEL classification:

    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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