{
  "title": "Corporate Income Taxes under Pressure: Why Reform Is Needed and How It Could Be Designed",
  "publication": "Books, February 26, 2021",
  "sourceUrl": "https://www.imf.org/en/publications/books/issues/2021/03/01/corporate-income-taxes-under-pressure-why-reform-is-needed-and-how-it-could-be-designed-48604",
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  "summary": "The book describes the difficulties of the current international corporate income tax system. It starts by describing its origins and how changes, such as the development of multinational enterprises and digitalization have created fundamental problems, not foreseen at its inception.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Describes difficulties of the current international corporate income tax system.\n- Traces origins of the system and how developments—such as the growth of multinational enterprises and digitalization—created fundamental problems not foreseen at inception.\n- Identifies tax competition (governments using low tax rates or incentives to attract tax bases) and profit shifting (companies reporting profits in jurisdictions with lower tax rates) as central challenges.\n- Reviews solutions including both evolutionary changes to the current system and fundamental reform options.\n- Covers reform efforts already under way (for example under the Inclusive Framework at the OECD) and potential radical reform ideas developed by academics."
    },
    {
      "heading": "Major problems identified",
      "content": "- Tax competition: governments attempt to attract tax bases through low tax rates or incentives.\n- Profit shifting: multinational enterprises avoid tax by reporting profits in jurisdictions with lower tax rates.\n- Digitalization: the digital economy creates allocation and nexus issues not anticipated by the original system."
    },
    {
      "heading": "Solutions and policy options discussed",
      "content": "- Evolutionary changes to the existing international corporate tax framework.\n- Fundamental reform options, including radical academic proposals.\n- Examination of ongoing reform efforts under the Inclusive Framework at the OECD alongside alternative reform ideas."
    },
    {
      "heading": "Subject coverage and keywords",
      "content": "- Subject: Balance of payments, National accounts, Taxes\n- Keywords: Corporate income tax, Corporate taxes, digitalization, Double taxation, Europe, Foreign direct investment, Global, Income, international cooperation, multinational enterprise, multinationals, passive income, Profit shifting, Sub-Saharan Africa, tax avoidance, tax competition, tax reform, tax treaty"
    },
    {
      "heading": "Publication metadata (from page)",
      "content": "- Authors: Ruud A. de Mooij, Alexander D Klemm, Victoria J Perry\n- Publication date: February 26, 2021\n- Pages: 388\n- ISBN: 9781513511771\n- DOI: https://doi.org/10.5089/9781513511771.071\n\nSource: https://www.imf.org/en/publications/books/issues/2021/03/01/corporate-income-taxes-under-pressure-why-reform-is-needed-and-how-it-could-be-designed-48604\n\n---\n\n\nSource: https://www.imf.org/en/publications/books/issues/2021/03/01/corporate-income-taxes-under-pressure-why-reform-is-needed-and-how-it-could-be-designed-48604"
    }
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    "Authors: Ruud A. de Mooij, Alexander D Klemm, Victoria J Perry",
    "Published: February 26, 2021",
    "Series: Books",
    "DOI: https://doi.org/10.5089/9781513511771.071",
    "Describes difficulties of the current international corporate income tax system.",
    "Traces origins of the system and how developments—such as the growth of multinational enterprises and digitalization—created fundamental problems not foreseen at inception.",
    "Identifies tax competition (governments using low tax rates or incentives to attract tax bases) and profit shifting (companies reporting profits in jurisdictions with lower tax rates) as central challenges.",
    "Reviews solutions including both evolutionary changes to the current system and fundamental reform options.",
    "Covers reform efforts already under way (for example under the Inclusive Framework at the OECD) and potential radical reform ideas developed by academics.",
    "Tax competition: governments attempt to attract tax bases through low tax rates or incentives.",
    "Profit shifting: multinational enterprises avoid tax by reporting profits in jurisdictions with lower tax rates.",
    "Digitalization: the digital economy creates allocation and nexus issues not anticipated by the original system.",
    "Evolutionary changes to the existing international corporate tax framework.",
    "Fundamental reform options, including radical academic proposals.",
    "Examination of ongoing reform efforts under the Inclusive Framework at the OECD alongside alternative reform ideas.",
    "Subject: Balance of payments, National accounts, Taxes",
    "Keywords: Corporate income tax, Corporate taxes, digitalization, Double taxation, Europe, Foreign direct investment, Global, Income, international cooperation, multinational enterprise, multinationals, passive income, Profit shifting, Sub-Saharan Africa, tax avoidance, tax competition, tax reform, tax treaty",
    "Authors: Ruud A. de Mooij, Alexander D Klemm, Victoria J Perry",
    "Publication date: February 26, 2021",
    "Pages: 388",
    "ISBN: 9781513511771",
    "DOI: https://doi.org/10.5089/9781513511771.071"
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