Cross-Border Loss Offset and Formulary Apportionment : How Do They Affect Multijurisdictional Firm Investment Spending and Interjurisdictional Tax Competition?
Motivated by the EU Commission's suggested company tax reforms, this paper investigates how cross-border loss offset and formulary apportionment of a consolidated tax base affect the investment and transfer pricing behaviour of a multijurisdictional firm, and how they affect the behaviour of governments potentially engaged in tax competition. The paper shows that cross-border loss offset mitigates both the reactions of a multijurisdictional firm to tax changes and the amount of tax competition engaged in by governments. However, formulary apportionment (with a consolidated tax base) boosts the sensitivity of firms to tax changes and increases the scope for interjurisdictional tax competition as well. For governments, formulary apportionment operates like a risk-sharing or partial equalisation mechanism
Year of publication: |
[2004]
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Authors: | Gerard, Marcel |
Other Persons: | Weiner, Joann Martens (contributor) |
Publisher: |
[2004]: [S.l.] : SSRN |
Saved in:
freely available
Extent: | 1 Online-Ressource (29 p) |
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Type of publication: | Book / Working Paper |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 2003 erstellt |
Other identifiers: | 10.2139/ssrn.434080 [DOI] |
Classification: | H31 - Household ; H73 - Interjurisdictional Differentials and Their Effects ; H87 - International Fiscal Issues |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012786046