Instead, it starts from first principles to ask how we should evaluate a tax on business profitDLand whether there is any good rationale for such a tax in the first place. It then goes on to evaluate the
existing system and a number of alternatives that have been proposed. It argues that the existing system is fundamentally flawed, and that there is a need for radical reform. The key conclusion from the analysis is that there would be significant gains from a reform that moved the system towards taxing profit in the country in which a business made its sales to third parties. That conclusion informs two proposals that are put forward in detail and evaluated: the Residual Profit Allocation by
Income (RPAI) and the Destination-based Cash Flow Tax (DBCFT). The book is authored by group of economists and lawyersDLthe Oxford International Tax Group, chaired by Michael P.
Devereux. It draws insights from both economics and lawDLincluding economic theory, empirical evidence on the impact of taxes, and an examination of practical issues of implementationDLto assess the existing system and to consider fundamental reforms. This book will be useful to tax policy makers, tax professionals, academics, and anyone interested in tax policy.
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