International Economic Law, Globalization and Developing Countries
Show Less

International Economic Law, Globalization and Developing Countries

Edited by Julio Faundez and Celine Tan

International Economic Law, Globalization and Developing Countries explores the impact of globalization on the international legal system, with a special focus on the implications for developing countries.
Buy Book in Print
Show Summary Details

Chapter 7: Taxing Constraints on Developing Countries and the Global Economic Recession

David Salter

Extract

7. Taxing constraints on developing countries and the global economic recession David Salter* INTRODUCTION 1. Taxation and the corresponding raising of tax revenue are central to a country’s culture, legal system and ultimate development. The correlation between taxation and development is imprecise not least because of the other tangible and intangible factors that impact upon development. However, tax revenues feed development and without economic growth linked to development tax revenues are circumscribed. In the absence of a worldwide unitary tax system, taxation and the raising of tax revenues lie primarily within the province of individual countries. Consequently, taxation has the potential to empower a country to allocate resources and to adopt policies, determined by economic and political considerations, as to its wealth and its distribution. In developed countries, the presence of strong governance systems ensures that this potential can normally be realised and hence the control of taxation and for that matter borrowing remains in central government. This cannot be said of developing countries. In this chapter, an examination is undertaken of the ways in which such fiscal autonomy or sovereignty has been fettered or constrained in developing countries whose tax systems and other governance systems are at an earlier stage of development than their counterparts in developed countries. This encompasses an initial consideration of in-built domestic constraints, followed by an analysis of inter-country constraints (regional trade/tax agreements, multilateral and bilateral double taxation agreements, and tax competition) and international institutional constraints arising out of membership of or dealings with international...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.