The International Coordination Of Tax Preferences

Tax preference policies are the instant reflectors of tax effects inherent in the globalization of economy. The various problems occurring in the enforcement of tax preference policies are just the specific indications of the tax effects as the result of economic globalization. The so-called problems are as follows:(a) the tax preference measures taken by host countries will be useless if there are no tax sparing; (b) some tax preference measures may be derogative to international trade; and (c) some preference policies might lead to harmful tax competition. The only solution to all these international problems is to coordinate the tax preference measures adopted by different countries.The dissertation started out with the problems encountered in the enforcement of tax preferences and gave an objective analysis of the necessity and present conditions of the international coordination of tax preferences. At the end, the author suggested some ways to perfect and reform our tax preference policies from the standpoint of international coordination.The core of the essay is how to coordinate the tax preferences internationally. It is cut into three parts and five sub-chapters in total:Part I including chapter l,is the detailed analysis of the concept and rationale of tax preferences, tax effects ensuing from economic globalization and the problems and their possible solutions. The author proved the necessity of coordinating the tax preferences internationally.Part II including chapter 2,3 and 4,is the positive analysis of the present conditions of the international coordination of the tax preferences, i.e. the existing solutions to the problems derived from the enforcement of taxpreferences. Chapter 2 analyzed the present conditions of tax sparing and proved its rationale. Chapter 3 took EC and WTO as examples and analyzed the coordination of tax preferences by trade system and Chapter 4 is the practices of EU & OECD, which fight against the harmful tax competition. The author compared their differences in this chapter.Part III,i.e. Chapter 5 put forward some suggestions as to our choice of policies as regards the international coordination of tax preferences.