In a globalised world economy where capital is highly mobile governments are eager to attract foreign investors by lowering their corporate tax rates. EU countries have been particularly active in this respect given that capital can move freely across EU member states' borders thanks to reforms...

Corporate tax levels have fallen substantially in Europe during the last decades. A broad literature has identified tax competition as one reason for this decline in corporate tax levels. However, none of these studies explicitly asks the question whether tax competition within regions is...

The common consolidated corporate tax base has been suggested as a way to curb tax avoidance by allocating profits across borders via a formula. This paper demonstrates that when transfer pricing occurs both for tariff and tax minimization, that moving from separate accounting to formula...