Unfair Tax Competition Counteraction: The OECD Recommend Ations and Russian Experience

Abstract

Unfair tax competition implies the involvement of taxpayers in the economy of offshore zones and tax havens, which leads to the erosion of the tax base of other States. At present, most States are taking measures to counteract unfair tax competition: To this end, OECD member countries have developed recommendations to counteract unfair tax competition by means of adopting national legislation, supplementing bilateral and multilateral tax agreements, and enhancing international cooperation. In the course of the study, the author concludes that the most effective implementation of these measures requires cooperation of all the States concerned, since actions taken at the international level will be more effective than adoption of measures to combat unfair tax competition at national levels. A Russian legislative practice has been adopting the main methods of dealing with unfair tax competition, among them: Development of the legislation concerning controlled foreign companies in the sphere of transfer pricing, establishment of the system of automatic exchange of tax information and information received from financial market organizations.