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Taxing Cross-Border M&A in a Globalizing World

65 Pages Posted: 27 May 2003  

Yariv Brauner

University of Florida - Levin College of Law

Date Written: May 2003


M&A play a major role in the materialization of globalization, but it is just one of several challenges that globalization poses to international tax policy, all of which share two basic tensions that may have been present in the past, but have been significantly exacerbated in importance by globalization: the revenue flight dilemma and the multinational enterprise tension. This article analyzes the special features and the tax policy implications of cross-border M&A, and concludes that only in very specific circumstances do they possess desirable efficiency properties. It further reviews the current legal framework and demonstrates its inadequacy in solving the revenue flight dilemma. I conclude, nevertheless, that it is a practically reasonable compromise at the present. I further suggest several policy options, all based on enhanced international cooperation, that may be desirable, as more and better information is available, and countries get more comfortable coordinating their international tax policies with other countries.

Keywords: Income Tax, International Tax, Globalization, Mergers and Acquisitions, Cross-border Mergers and Acquisitions, International Cooperation, Tax Competition

JEL Classification: K34

Suggested Citation

Brauner, Yariv, Taxing Cross-Border M&A in a Globalizing World (May 2003). NYU Law School, Public Law Research Paper No. 63. Available at SSRN: or

Yariv Brauner (Contact Author)

University of Florida - Levin College of Law ( email )

P.O. Box 117625
Gainesville, FL 32611-7625
United States
3522730949 (Phone)

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