Tax aspects of doing business in Central and Eastern Europe: New England implications.

New England states have substantially increased imports to Central and Eastern Europe markets, despite confusion and uncertainty over applicable tax laws and tariffs. Central and Eastern European nations should reform their tax systems so as to provide tax certainty and stability in areas such as retroactivity, tax rates, tax administration, tariffs, foreign/domestic capital tax treatment, and tax penalties. New England investors should be wary of dealing with these countries, whose economic transitions are plagued by weak fiscal bases and inconsistent tax policies.