The power politics of international tax co-operation: Luxembourg, Austria and the automatic exchange of information
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In: Journal of European Public Policy, Vol. 22, No. 3, 16.03.2015, p. 409-428.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - The power politics of international tax co-operation
T2 - Luxembourg, Austria and the automatic exchange of information
AU - Hakelberg, Lukas
N1 - Publisher Copyright: © 2014, © 2014 Taylor & Francis.
PY - 2015/3/16
Y1 - 2015/3/16
N2 - Luxembourg and Austria resisted exchanging bank data on non-resident interest income with European Union (EU) partners for over a decade. In March 2014 they eventually gave in. Theories of tax competition analysts usually apply to intra-EU bargaining over taxation cannot explain their change of tack. Instead, I argue that American imposition of bilateral exchange of information on the two countries unlocked negotiations at EU level. Concessions made to the United States (US) by Luxembourg and Austria activated a most-favoured nation clause contained in an EU directive. Moreover, the US also forced third countries to exchange bank data, thus reducing the risk of capital flight from Luxembourg and Austria.
AB - Luxembourg and Austria resisted exchanging bank data on non-resident interest income with European Union (EU) partners for over a decade. In March 2014 they eventually gave in. Theories of tax competition analysts usually apply to intra-EU bargaining over taxation cannot explain their change of tack. Instead, I argue that American imposition of bilateral exchange of information on the two countries unlocked negotiations at EU level. Concessions made to the United States (US) by Luxembourg and Austria activated a most-favoured nation clause contained in an EU directive. Moreover, the US also forced third countries to exchange bank data, thus reducing the risk of capital flight from Luxembourg and Austria.
KW - EU politics
KW - FATCA
KW - international political economy
KW - power politics
KW - savings directive
KW - tax competition
KW - Politics
UR - http://www.scopus.com/inward/record.url?scp=84924853427&partnerID=8YFLogxK
U2 - 10.1080/13501763.2014.941380
DO - 10.1080/13501763.2014.941380
M3 - Journal articles
AN - SCOPUS:84924853427
VL - 22
SP - 409
EP - 428
JO - Journal of European Public Policy
JF - Journal of European Public Policy
SN - 1350-1763
IS - 3
ER -