In the case of virtual tax competition for individual capital income,
this is different. Competition is effected by offering concealment services
(bank secrecy rules or legal vehicles such as trusts) to individuals so that
they can shelter their income in tax havens while continuing to live in
high tax countries. Policies to prevent this should find unambiguous support
from labour, because job relocations are not to be feared. Corporate
capital should be indifferent. But although such measures run contrary
to the interests of individual capital, this group would probably not oppose
them vocally, because not reporting foreign income in their home
countries is illegal. Thus the political chances of preventing individual
free riding (living in a country but evading its taxes) are much better than
for curbing corporate free riding (producing in a country but avoiding its
taxes).