1. Tax Competition: BEPS, the EU, and Individual Country Responses
Lilian V. Faulhaber
Associate Professor
Georgetown University Law Center

2. What is Tax Competition?
Competition over…
Statutory corporate rates?
Effective corporate rates?
Preferential rates for certain taxpayers or income?
Competition for…
Revenues and other resource flows (firms, people, jobs)?
Spillovers (intellectual capital)?

3. Two Possible Responses
Enter the competition
Lower statutory or effective rates
Implement preferential regimes
Redesign the tax system
Compete on non-tax elements
Prevent the competition
Implement anti-tax-competition measures

4. Recent Trends
Anti-tax-competition measures that target “harmful tax competition”
Measures that target tax avoidance, particularly by multinationals
Multilateral and unilateral responses

5. OECD/G20 Responses to Tax Competition
Action 5:
Nexus approach for patent boxes
Spontaneous exchange of rulings

6. EU Responses to Tax Competition
Nexus approach from OECD
Recent state aid investigations
List of non-cooperative jurisdictions

7. Anti-avoidance measures
OECD/G20
Other BEPS Action Items focused on taxpayers
European Union
Anti-Tax-Avoidance Directive
Common Base Proposals (CCTB/CCCTB)
UK Diverted Profits Tax
Australian Multinational Anti-Avoidance Law

8. Lessons from Recent Responses
Anti-tax-competition measures as a form of tax competition
Anti-avoidance rules as anti-tax-competition measures