IMF: Corporate tax schemes hurt developing countries
Published on Jun 26, 2014 6:21 AM
WASHINGTON (AFP) - Developing economies are increasingly hurt by the way global corporations exploit taxation differences and move profits to low-tax locations, according to an International Monetary Fund report on Wednesday.
But few countries can protect themselves in a competition for direct investment that increasingly appears like a "race to the bottom" in setting corporate tax rates, the IMF said.
Moreover, companies are increasingly able to shift and relocate more intangible assets - like intellectual property - to avoid taxes.
The IMF said that the more countries give in to investors' requirements on taxes, the more they are hurting the global community.
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