Becker, Johannes (contributor); Fuest, Clemens (contributor) - 2007
high. The reason is that enforcement of tax payments reduces the tax revenue
of the tax haven within the union. This …
rental price of r. Moreover, there is a tax haven outside the union which o�ers
possibilities of income shifting to �rms … from the home
country to the foreign country, and a = s = 0.
Secondly, �rms may shift income to a tax haven outside the …