Working Paper 173

Analysis of the international network of double tax treaties reveals a large potential for tax avoidance. Developing countries are, on average, not more likely to suffer from tax revenue losses than other countries. Yet, this average masks the fact that several countries, such as Bangladesh, Egypt, Indonesia, Kenya, Uganda and Zambia, are vulnerable to substantial potential losses of withholding tax revenue by treaty shopping. The treaties responsible for this are referred to as potentially aggressive tax treaties.


Maarten van ’t Riet

Maarten van ’t Riet is a researcher at CPB Netherlands Bureau for Economic Policy Analysis and an External PhD Candidate at Leiden University, Department of Economics and Department of Tax Law. Previously he worked as a consultant for the Food and Agriculture Organisation of the United Nations.

Arjan Lejour

Arjan Lejour is Professor Taxation and Public Finance at Tilburg University, and researcher at CPB Netherlands Bureau for Economic Policy Analysis. His research focuses on business taxation, international tax avoidance and evasion, and tax havens.
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