treaty. Article 6 reflects a minimum standard for protection against the abuse of treaties. A party may, therefore, reserve the right for the text not to apply to an existing tax treaty only if that treaty already contains preamble language that describes the same intent or that applies more broadly ( OECD 2016 ; see para. 85).
Article 7 of the MLI presents an antiabuse provision in the form of the so-called principal purpose test (PPT), For an analysis of the PPT clause, see Chand (2018) . which since the 2017 update is also included in Article 29(9) of the OECD
Most developed nations provide assistance for persons with reduced ability to support themselves economically because of age, sickness, or physical or mental disability, either by direct financial transfers or by participation in the costs of basic necessities such as housing. The grant and subvention systems are, as a rule, complicated and nontransparent. New reforms and new reform ideas are regularly presented under the slogan of simplification of the existing “system.” The idea of “basic income” is one such reform idea. “Basic income
equilibrium unemployment. He finds that home production brings the basic search equilibrium model of labor market closer to reality so that the neutrality result of proportional tax rate on employment disappears with the introduction of home production.
Engström et al . (2001) explore tax differentiation between (physical) goods and services in a labor market search and matching model with home production. The authors show that a tax cut on service sector reduces unemployment and also that the introduction of sectoral tax differentiation with lower tax on services is
companies and subsidiaries and the Anti-Tax Avoidance Directive (ATAD). See Council Directive (EU) 2015/121 of 27 January 2015 amending Directive 2011/96/EU on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States, and Council Directive (EU) 2016/1164 of 12 July 2016 laying down rules against tax avoidance practices that directly affect the functioning of the internal market. In addition, a test of “principal purpose” is part of the multilateral instrument, based on the Base Erosion Profit Shifting (BEPS
system has been that because of the high marginal tax rates of earned income, it has been tempting to try to shift the fruit of work into the company’s shells and thus further within the capital income taxation. It can also be argued that the practice in case law and taxation has for a long time been quite permissive regarding the use of the company form. However, the legislator has intervened in some extreme situations through special tax legislation.
The limits of the acceptable tax planning were tested, for instance, in the case KHO 2008:6, which is described in
methods are tested ( Mantzavinos (2001) ).
More radical innovations frequently emanate from smaller firms ( Baumol (2010) ). These firms, particularly the successful ones, are frequently spinoffs from large firms ( Klepper (2016) ). Thus, new technology is often developed, implemented, commercialized, and widely disseminated by new entrepreneurial firms. Acquiring new firms is also a way for leading firms to gain access to new technology.
The most important factor behind job dynamics is not firm size but firm age ( Coad et al. (2014) ; Haltiwanger et al. (2017