Monday, June 27, 2016

Brexit / international tax policy follow-up

I was a bit soft-spoken about Brexit in my prior post ("I'm inclined to think that Brexit will predominantly have bad effects") as I didn't want to rant or screech, especially in a very preliminary response before getting a chance to read more about it.

But here's the odd thing, clarifying a point that was implicit in the post but that I hadn't as yet thought through as clearly.  Damaging (or even calamitous) as Brexit may be for the English on the whole if it actually goes through (and I say "the English," not "the UK" or "the British" advisedly), it may actually increase their flexibility in international tax policymaking, which (all else equal) would potentially be a good thing.  But, alas for them, "all else equal" is not a good operating assumption.

If the English value their own international tax policymaking flexibility, they can actually use it in a number of different ways post-Brexit that would not have been as feasible before.  Removing European Commission and European Court of Justice oversight increases their freedom of action whether they want to use it towards (a) cracking down more on their own multinationals, without having to worry about such ECJ decisions such as Cadbury Schweppes, (b) becoming even more of a tax haven, such as by doing state aid without facing oversight by the EC, or (c) reviving corporate integration via shareholder imputation, without having to credit other EU countries' corporate taxes or to offer refunds to other EU countries' residents.

What does this leave out?  Well, here are a few things:

(1) how Brexit's terms are negotiated - e.g., it could conceivably involve agreeing to limits on international tax policymaking flexibility,

(2) how remaining EU countries change their tax policy towards the English (e.g., the gain in flexibility is reciprocal - other EU countries would now presumably be able to treat English companies and taxes less favorably than before), and

(3) everything else that could happen to the English by reason of Brexit if it actually goes through (i.e., if they don't do the smart thing by never actually triggering Article 50).


Dr Purva Pius said...

Hello Everybody,
My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:( Thank you.


1. Name Of Applicant in Full:……..
2. Telephone Numbers:……….
3. Address and Location:…….
4. Amount in request………..
5. Repayment Period:………..
6. Purpose Of Loan………….
7. country…………………
8. phone…………………..
9. occupation………………
11.Monthly Income…………..

Email Kindly Contact:

Mr Abdullah Ibrahim said...

Get a personal loan from $3,000 to $20,000,000 within 24 hours upon request. Other types of loans are also available in less than 48 hours. Contact me as needed. Contact Us At
whatspp Number +918929490461
Mr Abdullah Ibrahim