Globalization and regional economic integration have increased factor mobility and have reduced commercial barriers among countries. In this context, tax competition among national (subnational) governments to attract factors of production and consumers to their respective jurisdictions became...

This article discusses the effects of corporate tax asymmetries under investment irreversibility. We introduce a tax scheme where the tax base is given by the firm's return net of a rate of relief. When the firm's return is less than the imputation rate, however, no tax refunds are allowed....