Global tax competition and its reflections to Turkey

Global tax competition is a fact which has emerged as a result of increased mobility especially in the capital factors of production between countries and globalization process. When countries were evaluated with interests, global tax competition are observed to have two distinct features as ?useful? and ?harmful?. Because the countries, according to their own economic interests, are installing a sense of global tax competition. In this context, developing countries expand their own tax capacities and regulate the tax policies in need of improving limited capital. However developed countries are opposed to tax competition for the purpose of both preventing the narrowing of tax capacity and impeding the flowing economic resources of the country. There are some international institutions trying to manage this expedience conflict between developed and the developing countries. OECD and the other international institutions which try to manage global tax policies in favour of developed countries, have been exhibiting a management approach to prevent the global tax competition.