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Some International Issues in Commodity Taxation

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  • Mr. Michael Keen

Abstract

This paper reviews issues and evidence concerning tax-motivated, cross-border commodity transactions. A distinction is drawn between "arbitrage trades" (driven by cross-country differences in tax rates) and "tax not paid" transactions (motivated by the opportunity to pay no tax at all on transactions with international aspects). Assessment of the severity of the associated policy problems faces the difficulty that the observed extent of cross-border transactions conveys no information on the induced inefficiency that the possibility of such transactions may generate. Given the difficulty of securing coordination of national tax policies, much of the emphasis in dealing with these problems in the coming years is likely to be on administrative cooperation.

Suggested Citation

  • Mr. Michael Keen, 2002. "Some International Issues in Commodity Taxation," IMF Working Papers 2002/124, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2002/124
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    References listed on IDEAS

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    Cited by:

    1. Asplund, Marcus & Friberg, Richard & Wilander, Fredrik, 2007. "Demand and distance: Evidence on cross-border shopping," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 141-157, February.
    2. Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2017. "Cross-border commuting and consuming: an empirical investigation," Applied Economics, Taylor & Francis Journals, vol. 49(20), pages 2011-2026, April.
    3. repec:mea:meawpa:14284 is not listed on IDEAS
    4. repec:kap:iaecre:v:16:y:2010:i:2:p:135-148 is not listed on IDEAS
    5. Andrés Leal & Julio López-Laborda & Fernando Rodrigo, 2010. "Cross-Border Shopping: A Survey," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(2), pages 135-148, May.
    6. Vidar Christiansen, "undated". "Cross-border shopping and tax structure," EPRU Working Paper Series 03-04, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.

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