Intellectual Property (IP) migration represents a significant challenge to tax administrations, often involving significant tax revenue. In the Amazon case regarding the transfer of its IP from the US to Luxembourg, the Court rejected the valuations of both parties (US $255 million versus US...

It is well recognised that interest deductions are often used by multinational enterprises (“MNEs”) to minimise their tax liabilities. Despite the significant effort devoted by the OECD and the participating countries in the Base Erosion Profit Shifting project, research has shown that the...

It is well known that many multinational enterprises use intra-group debts for tax avoidance purposes. Action 4 of the OECD’s Base Erosion Profit Shifting (“BEPS”) Project represents a recent major contribution to the literature on the subject, providing important insights into the design...

Australia has received considerable attention as a result of its unilateral actions to discourage multinational profit shifting. Those actions include the 2015 enactment of the Multinational Anti-Avoidance Law and the Australian Treasury's May 2016 proposal for a diverted profits tax. This...

The international tax regime in relation to multinational enterprises (MNEs) is ineffective and a rethink is required. We illustrate that the tax avoidance motive of MNEs can incentivize managers to locate profits in low-tax jurisdictions without affecting the locations of their real operations....

Apple, famous for its innovative products, has proved to be equally creative in its tax structure. From 2009 to 2012, it successfully sheltered US $44 billion from taxation anywhere in the world. An unusual feature of its tax structure is the relative simplicity: it does not rely on the Double...

The multilateral formulary apportionment (“FA”) model has been hailed as the solution for the existing transfer pricing regime for several decades. The most recent and ambitious attempt to apply the model is the Common Consolidated Corporate Tax Base (“CCCTB”) project currently being...

Australia’s consolidation regime is the world's first "asset-based" model under which multiple levels of ownership in a corporate group are collapsed into one: a bold attempt to deal with the dual cost bases issue. Compared with the consolidation regimes in other countries, the Australian...