International tax policy under NAFTA: The impact of national tax differences on capital flows under regional trade and investment integration.

摘要

This dissertation investigates the impact of national tax differences on capital flows under regional economic and trade integration in North America. The objectives of the study are twofold. First, the dissertation attempts to assess the economic costs associated with maintaining the current regime of taxing cross-border investment flows that has been put in place by the United States, Canada and Mexico (the "Member States"). Second, the study proposes a number of multilateral tax coordination efforts that the Member States should undertake to constrain some of these costs. Maintaining the current tax treatment of cross-border factors in North America decreases the economic welfare of the North American trade bloc by distorting investment flows and inhibiting certain cross-border investment activities. The Member States should therefore consider implementing multilateral tax coordination mechanisms, including the harmonization of tax treaty provisions, the implementation of binding dispute resolution for transfer pricing disputes and the abolishment of withholding taxes on parent/subsidiary dividends.