Is the WTO a World Tax Organization?: A Primer for WTO Rules for Policy Makers
Technical Notes and Manuals, March 29, 2016
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Bibliographic details
- Authors: Michael Daly
- Published: March 29, 2016
- Series: Technical Notes and Manuals
- DOI: https://doi.org/10.5089/9781498329798.005
Summary
- Author: Michael Daly
- Date: March 29, 2016
- Series: Technical Notes and Manuals No. 2016/003
- Issue: 003
- Pages: 54
- DOI: https://doi.org/10.5089/9781498329798.005
- ISBN: 9781498329798
- ISSN: 2075-8669
- Core purpose: Examines the extent to which World Trade Organization (WTO) rules impinge on policymakers’ freedom to formulate tax policies, and provides guidance on designing tax policy to reduce the risk of successful WTO challenges.
Economic rationale and scope of WTO rules concerning taxation
- Provides an overview of the economic rationale for WTO rules concerning taxation, including border taxes and internal taxes (direct as well as indirect).
- Reviews provisions of the main WTO agreements concerning:
- border taxes
- internal taxes (direct and indirect)
Evolution of rules through dispute settlement and identified anomalies
- Describes how WTO rules have evolved as a consequence of the interpretation of the WTO agreements by the Dispute Settlement Body and its rulings in several disputes over taxes affecting trade.
- Points out tax anomalies and inconsistencies in WTO rules as revealed by dispute settlement practice.
Policy guidance for tax policymakers
- Emphasizes the practical concern that WTO Members will want to avoid having their tax policies successfully challenged in the WTO.
- Provides guidance concerning the design of tax policy to reduce the risk of WTO challenges (guidance oriented toward policymakers; specific design recommendations are covered in the full paper).
Subject coverage and keywords
- Subject: Consumption taxes, Exports, General Agreement on Tariffs and Trade, Income and capital gains taxes, International trade, Tariffs, Taxes
- Keywords include: article III, Consumption taxes, double taxation, export tax, Exports, General Agreement on Tariffs and Trade, Global, import tariff, Income and capital gains taxes, sales tax, Tariffs, tax, tax incentive, tax measure, tax rate, tax relief, TNM, trade, trade diversion, WTO agreement, WTO rule