A Legal and Economic Analysis of Austria's Double Tax Treaty Network with Developing Countries

The true art of the tax deal: Evidence on aid flows and bilateral double tax agreements

“…With regard to bilateral tax treaties, due to their benefits being predominantly on the side of capital-exporting countries, a number of legal and economic scholars have pleaded for the inclusion of revenue sharing mechanisms into DTAs between countries with asymmetric investment positions (e.g., Paolini, Pistone, Pulina, & Zagler, 2015;Thuronyi, 2010). To our knowledge, potential connections between DTAs and existing foreign aid payments have, however, only been addressed by Braun and Zagler (2014). In a pure cross-sectional study for 2010, the authors find a positive association between bilateral ODA commitments and the existence of DTAs.…”

Double Taxation Treaties as a Catalyst for Trade Developments: A Comparative Study of Vietnam’s Relations with ASEAN and EU Member States

“…There is a large and growing body of literature regarding double taxation treaties as well as its implications for relevant aspects, particularly foreign investment and international trade. First and foremost, the effect of double taxation treaty on investment has received considerable attention of the academics (e.g., Azémar and Delios 2008;Barthel et al 2010;Baker 2014;Braun and Fuentes 2014;Braun and Zagler 2014). Specifically, in examining the association between tax competition and FDI, based on the evaluation of the interaction between Japan and host developing countries' tax systems between 1990 and 2000, Azémar and Delios (2008) found that some countries have proactively introduced the special preferential terms with great appeal for Japanese investors, during the process of negotiating taxation agreement with Japan.…”

“…Utilising unpublished data on bilateral FDI flows between developed and developing economies, Barthel et al (2010) conclude double taxation treaty is an important catalyst which could stimulate FDI into developing countries to increase by 29% on an annual basis. From the perspective of advanced countries, Braun and Fuentes (2014) investigate the impact expected by developing country partners when entering into the tax treaties with Austria using empirical methods and find that the formation of double taxation treaties with Austria could foster investment from Austria into middle-income countries. This is since double taxation treaties prove effective in (i) eliminating the double taxation; (ii) protecting legitimate rights of the potential foreign investors; (iii) creating advantages over domestic taxes through tax deductions, thereby favouring the attraction of FDI; (iv) combating fiscal evasion.…”

Tax Information Exchange with Developing Countries and Tax Havens

“…We included the joint level of corruption of both treaty partners. The variable is positive and statistically significant, indicating that two countries are more likely to conclude a tax treaty the lower the joint level of corruption in both countries is (also see Braun & Zagler, 2014). In Column 4, a binary variable Haven is added which takes the value one if one country of the country-pair is a tax haven and zero otherwise.…”

“…This model predicts that very little information will be exchanged in case of an asymmetric treaty with no compensation for the information provided. We then test the model empirically with our hypothesis being that giving bilateral development assistance may be a way to compensate countries for providing information (see Braun & Zagler, 2014).…”