Corporate tax schemes hurt developing countries, IMF says

http://www.rawstory.com/rs/2014/06/26/corporate-tax-schemes-hurt-developing-countries-imf-says/



Corporate tax schemes hurt developing countries, IMF says
By Agence France-Presse
Thursday, June 26, 2014 9:30 EDT

Developing economies are increasingly hurt by the way global corporations exploit taxation differences and move profits to low-tax locations, according to an International Monetary Fund report Wednesday.

But few countries can protect themselves in a competition for direct investment that increasingly appears like a “race to the bottom” in setting corporate tax rates, the IMF said.

Moreover, companies are increasingly able to shift and relocate more intangible assets — like intellectual property — to avoid taxes.

The IMF said that the more countries give in to investors’ requirements on taxes, the more they are hurting the global community.