How can countries protect their tax base from aggressive international tax planning?

Protecting a country’s tax base from aggressive international tax planning requires a multi-faceted approach. In New York, one way to limit aggressive international tax planning is to ensure that both domestic and foreign-owned companies face the same tax rules and regulations. This would reduce opportunities for companies to take advantage of different legal systems in order to limit their tax liabilities. It is also important to reduce incentives for companies to move their operations out of the home country. This can be done by providing targeted tax incentives, such as tax credits for businesses that maintain their operations in the country, and by reducing the tax rates faced by certain types of businesses. Finally, countries can strengthen their international tax framework by joining regional or international organizations that provide for information exchange and tax coordination. This would allow countries to have better oversight over their international tax system and crack down on aggressive international tax planning. Overall, protecting a country’s tax base requires a combination of measures aimed at making it harder for companies to exploit international differences in tax rates and regulations, while at the same time providing incentives for businesses to remain in the home country.

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How can countries protect their tax base from aggressive international tax planning?

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