In this paper, I will discuss this question with special emphasis on the European experience. The European Union (EU) qualifies for an interesting case study because of two reasons. First, it has been founded more than 40 years ago in 1957. Second, its ongoing process of deep Integration is...

Profit shifting activities of multinational enterprises (MNEs) result in base erosion in high-tax countries. Tax-motivated profit shifting may distort real investments of MNEs and encourage economies to engage in tax competition. To address the loss of tax revenues in high-tax jurisdictions, the...