In the past, governments had more freedom in setting their taxes as the barriers to free movement of capital and people were high. The gradual process of globalization is lowering these barriers and results in rising capital flows and greater manpower mobility. Tax competition exists when...

The paper deals with the brain drain phenomenon (rational minds migration), displayed inside the European Union, in close correlation with European tax competition. Speciality literature from the countries of the European Union deals with great responsibility the migration process of the...