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Legal Transplant, Tax Competition And Corporate Tax Models, Carlo Garbarino

Carlo Garbarino

This paper aims to contribute an additional layer to the current debate on tax harmonization versus tax competition by adopting a comparative evolutionary analysis to explain corporate tax innovation as a result of tax competition. We shall see that not only do countries compete to attract investment, corporate tax solutions also compete and selectively evolve as a result of this competition (for example, exemption of dividends may prevail over the imputation system, or different kinds of ratios may be available to solve the common problem of limiting interest deductions). We shall see that legal change is prompted by tax solutions …