Has Cross-Border Arbitrage Met Its Match?

12 Pages Posted: 2 Sep 2021 Last revised: 11 Apr 2022

See all articles by Ruth Mason

Ruth Mason

University of Virginia School of Law

Pascal Saint-Amans

Director, Centre for Tax Policy and Administration

Date Written: August 31, 2021

Abstract

In this essay, we review two decades of criticisms of both the concept of international tax arbitrage and regulatory responses meant to reduce such arbitrage. We conclude that although objections to curbing arbitrage have merit, they are not so fundamental that they should stand in the way of reforms. Finally, we explore recent international cooperative efforts — pursued under the auspices of the OECD/G20 Base Erosion and Profit Shifting Project (BEPS Project) — to curb international tax arbitrage. We liken the anti-hybrid rules developed under the BEPS Project to penalty defaults in contract law, and we argue that the result they reach is in some ways similar to — and no more objectionable than — mutual recognition under EU law.

Suggested Citation

Mason, Ruth and Saint-Amans, Pascal, Has Cross-Border Arbitrage Met Its Match? (August 31, 2021). Virginia Tax Review, Vol. 41, 2021, Virginia Law and Economics Research Paper No. 2021-19, Available at SSRN: https://ssrn.com/abstract=3915033

Ruth Mason (Contact Author)

University of Virginia School of Law ( email )

United States

Pascal Saint-Amans

Director, Centre for Tax Policy and Administration ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

HOME PAGE: http://https://www.oecd.org/ctp/pascal-saint-amans.htm

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
367
Abstract Views
1,294
rank
116,952
PlumX Metrics