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References<br />
107. Eurodad calculations. The statuory rates in <strong>the</strong> developing countries for all<br />
four income categories were collected from Deloitte's database ( https://<br />
www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-taxwithholding-tax-rates.pdf<br />
). On royalties many treaties distinguish between<br />
several types <strong>of</strong> royalties. For <strong>the</strong> calculation, <strong>the</strong> tax rates for royalties<br />
concerning <strong>the</strong> use <strong>of</strong> patents, trademarks, industrial or scientific equipment<br />
and similar were used (when available). Several treaties also distinguish<br />
between payments to <strong>the</strong> government or central banks, for which<br />
<strong>the</strong> tax rate is usually 0%. These were omitted from <strong>the</strong> calculations. As regards<br />
<strong>the</strong> tax treaty rates, <strong>the</strong> analysis has been conducted using a combination<br />
<strong>of</strong> data obtained from <strong>the</strong> 18 European governments’ websites containing<br />
<strong>the</strong>ir tax treaties (links to <strong>the</strong>se websites can be found here: http://<br />
ec.europa.eu/taxation_customs/taxation/individuals/treaties_en.htm and<br />
https://www.regjeringen.no/en/topics/<strong>the</strong>-economy/taxes-and-duties/<br />
tax-treaties-between-norway-and-o<strong>the</strong>r-st/id417330/ ). In <strong>the</strong> cases where<br />
<strong>the</strong> information was not possible to optain due to language barriers or<br />
o<strong>the</strong>r complications, o<strong>the</strong>r sources were used to complement <strong>the</strong> data, and<br />
in cases where no data was optainable, <strong>the</strong> treaty was omitted from <strong>the</strong><br />
data and calculations (this was <strong>the</strong> case for <strong>the</strong> tax treaty between Comoro<br />
Islands and France). For example, <strong>the</strong> following sources has been used to<br />
optain information on tax treaties: data shared by ActionAid International,<br />
Martin Hearson <strong>of</strong> <strong>the</strong> London School <strong>of</strong> Economics and Political Science;<br />
International Bureau <strong>of</strong> Fiscal Documentation (IBFD) Tax Research Platform<br />
(http://online.ibfd.org/kbase/), Treatypro.com; Pricewaterhousecoopers<br />
'Worldwide Tax Summaries' (http://taxsummaries.pwc.com/uk/taxsummaries/wwts.nsf/ID/PPAA-85RDKF);<br />
and Finnwatch. (2014). Rikkinäinen<br />
veropalapeli. Accessed 24 November 2016: http://finnwatch.org/images/<br />
verosopimukset5.pdf. The data only covers tax treaties that entered in<br />
to force between 1 January 1970 and 15 November 2016. The category<br />
‘developing countries ‘ covers <strong>the</strong> countries that fall into <strong>the</strong> World Bank’s<br />
categories <strong>of</strong> low-income, lower-middle income and upper-middle income<br />
countries (which covers <strong>the</strong> span <strong>of</strong> GNI per capita from $0 to $12,475. See:<br />
https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-<br />
world-bank-country-and-lending-groups. Compared to 2015, <strong>the</strong> numbers<br />
for total tax treaties with developing countries and <strong>the</strong> average reduction<br />
in tax rates have changed as a consequence <strong>of</strong> new treaties being signed,<br />
as well as changes in <strong>the</strong> World Bank’s defined categories <strong>of</strong> low-income,<br />
lower-middle income and upper-middle income countries.<br />
108. Lennard, Michael. (2009). The UN Model Tax Convention as Compared with<br />
<strong>the</strong> OECD Model Tax Convention – Current Points <strong>of</strong> Difference and Recent<br />
Developments. Published in Asia-Pacific Tax Bulletin, 2009. Accessed<br />
15 November 2016. http://www.taxjustice.net/cms/upload/pdf/Lennard_0902_UN_Vs_OECD.pdf<br />
109. ActionAid. (2015). Levelling up. Ensuring a fairer share <strong>of</strong> corporate tax for<br />
developing countries’ Accessed 15 November 2016. https://www.actionaid.<br />
org.uk/sites/default/files/publications/levelling_up_final.pdf<br />
110. European Parliament. (2016). Resolution <strong>of</strong> 7 June 2016 on <strong>the</strong> EU 2015<br />
Report on Policy Coherence for Development (2015/2317(INI)). Accessed<br />
16 September 2016: http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//NONSGML+TA+P8-TA-2016-0246+0+DOC+PDF+V0//EN<br />
111. European Commission. (2016). Communication from <strong>the</strong> Commission<br />
to <strong>the</strong> European Parliament and <strong>the</strong> Council on an External Strategy<br />
for Effective Taxation. Published 28 January 2016. Accessed 10<br />
June 2016: http://eur-lex.europa.eu/resource.html?uri=cellar:b5aef3db-c5a7-11e5-a4b5-01aa75ed71a1.0018.02/DOC_1&format=PDF<br />
112. Morgan, Jamie. (2016). Corporation tax as a problem <strong>of</strong> MNC organisational<br />
circuits: The case for unitary taxation. Pp. 464-465. British Journal <strong>of</strong> Politics<br />
& International Relations 18(2):463-481, published May 2016.<br />
113. BEPS Monitoring Group. (2015). ’ Overall Evaluation <strong>of</strong> <strong>the</strong> G20/OECD Base<br />
Erosion and Pr<strong>of</strong>it Shifting (BEPS) Project’. Accessed 15 November 2016.<br />
https://bepsmonitoringgroup.files.wordpress.com/2015/10/general-evaluation.pdf<br />
114. Financial Times. (2016). Alphabet and Apple spell global tax war. Article<br />
published 27 January 2016. Accessed 16 September 2016: http://www.<br />
ft.com/cms/s/0/7414a126-c41d-11e5-b3b1-7b2481276e45.html#axzz-<br />
4GluU52Wh. and? The Economist. (2016). Britain’s tax men struck a poor<br />
deal. But <strong>the</strong> real problem lies with flawed international corporate-tax<br />
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pe/ed/goingaftergoogle<br />
115. See eg. Morgan, Jamie. (2016). Op. cit.<br />
116. EUR-Lex. (2011). Proposal for a COUNCIL DIRECTIVE on a Common Consolidated<br />
Corporate Tax Base (CCCTB). Accessed 15 November 2016. http://<br />
eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52011PC0121<br />
117. European Commission. (2016). Common Consolidated Corporate Tax<br />
Base. Website. Accessed 15 November 2016. https://ec.europa.eu/taxation_customs/business/company-tax/common-consolidated-corporate-tax-base-ccctb_en<br />
118. See e.g. <strong>the</strong> European Commission’s CCCTB website: http://ec.europa.eu/<br />
taxation_customs/business/company-tax/common-consolidated-corporate-tax-base-ccctb_en#relaunch<br />
119. For example, <strong>the</strong> formula for apportionment needs to be carefully designed<br />
to reflect real economic activity. To make <strong>the</strong> system effective, it would also<br />
need to include strong Controlled Foreign Company (CFC) rules, treating<br />
all foreign affiliates <strong>of</strong> EU-resident parent companies as CFCs so that <strong>the</strong><br />
group’s consolidated pr<strong>of</strong>its are subject to tax in <strong>the</strong> resident country, with<br />
full credit for all equivalent foreign taxes paid. This would protect <strong>the</strong> tax<br />
base <strong>of</strong> both source and residence countries.<br />
120. European Commission. (2016). Proposal for a COUNCIL DIRECTIVE on a<br />
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121. European Commission. (2016). Proposal for a COUNCIL DIRECTIVE on a<br />
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122. See e.g. European Parliament. (2015). European Parliament resolution <strong>of</strong><br />
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123. See Siu et al. (2014). Unitary Taxation in Federal and Regional Integrated<br />
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September 2016: https://assets.publishing.service.gov.uk/media/57a089ec40f0b652dd000486/ICTD-RR3.pdf<br />
124. European Commission. (2016). Communication from <strong>the</strong> Commission<br />
to <strong>the</strong> European Parliament and <strong>the</strong> Council on an External Strategy<br />
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125. ECOFIN meeting outcome: http://www.consilium.europa.eu/en/press/<br />
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126. European Parliament. (2015). European Parliament resolution <strong>of</strong> 25<br />
November 2015 on tax rulings and o<strong>the</strong>r measures similar in nature or<br />
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127. European Commission. (2016). Communication from <strong>the</strong> Commission<br />
to <strong>the</strong> European Parliament and <strong>the</strong> Council on an External Strategy<br />
for Effective Taxation. Published 28 January 2016. Accessed 10<br />
June 2016: http://eur-lex.europa.eu/resource.html?uri=cellar:b5aef3db-c5a7-11e5-a4b5-01aa75ed71a1.0018.02/DOC_1&format=PDF<br />
128. ECOFIN meeting outcome: http://www.consilium.europa.eu/en/press/<br />
press-releases/2016/05/25-conclusions-tax-treaty-abuse/<br />
129. Ryding, Tove. The secret EU tax code that needs to be cracked open.<br />
Published 14 January 2016. Accessed 18 November 2016. http://www.<br />
taxjustice.net/2016/01/14/<strong>the</strong>-secret-eu-tax-code-that-needs-to-becracked-open<br />
130. Council <strong>of</strong> <strong>the</strong> European Union. (2016). Taxation: Council agrees criteria<br />
102 • <strong>Survival</strong> <strong>of</strong> <strong>the</strong> <strong>Richest</strong>