Multinational companies are currently engaging in tax avoidance and tax planning to reduce their worldwide tax bill. Whether avoiding taxes, or paying them in a jurisdiction with the lowest rate, the result is the same—a loss of tax revenue for governments that need it. Governments, on the other side, often encourage foreign direct investment through tax competition. This session will look at a number of key issues. How can the international tax system be improved? Which countries are the most heavily impacted by tax competition? How can governments balance the desire for foreign investment against the need for a worldwide tax system that is fair for all countries?