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Public-Private Partnerships, Taxation and a Civil Society

HEADNOTE

This paper deals with the contribution that public-private partnerships (PPPs) make to the development of infrastructure for the benefit of the public sector. The purpose of such infrastructure is to enable the public partner

to provide public goods at better value for money. However, PPPs have been made the target of taxation anti-avoidance legislation, which may operate to deny tax deductions to the private partner. Because of the importance of taxation deductions in lowering costs and providing better value for money, this legislation plays a critical part in the shaping of the arrangements between the partners. The appropriateness of this legislation as a regulatory regime is examined in the light of Charles Taylor's conception of civil society. It is questioned whether there is a place for such legislation as it acts as an impediment to the provision of important public goods. In more general terms, the paper raises questions concerning the modern preoccupation with a procedural and economic understanding of civil society at odds with Taylor's interpretative understanding of such a society.

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