We provide indirect empirical evidence of profit shifting behavior by multinational enterprises (MNEs) employing a panel study for the years 1995 to 2005, while controlling for unobservable fixed firm effects. We use a large micro database of European MNEs which includes detailed accounting and...

We provide indirect empirical evidence of profit shifting behavior by multinational enterprises. This issue is analyzed in an econometric panel study for the years 1995 to 2005 and additionally in a cross-section for 2004 using a large micro database of European subsidiaries of multinationals...

Intangible assets are one major source of profit shifting opportunities due to a highly intransparent transfer pricing process. Our paper argues that multinational enterprises (MNEs) optimize their profit shifting strategy by locating shifting–relevant intangible property at affiliates with a...

Intangible assets, like patents and trademarks, are increasingly seen as the key to competitive success and as the drivers of corporate profit. Moreover, they constitute a major source of profit shifting opportunities in multinational enterprises (MNEs) due to a highly intransparent transfer...

Using a large panel data set for European firms, this paper provides evidence that operations at multinational headquarters are significantly more profitable than perations at their foreign subsidiaries. The effect turns out to be robust and quantitatively large. Our findings suggest that the...

In an article in the American Economic Review, Jonathan R. Kesselman, Samuel H. Williamson and Ernst R. Berndt presented a Table showing the effect of substituting a marginal employment tax credit (METC)for the investment tax credit (ITC) over the 1962 to 1971 period. Their METC was defined in...

This article analyzes the distributional impact of the Canadian Goods and Services Tax, which was implemented in 1989, using the Social Policy Simulation and Database, a sophisticated micro-simulation tool developoed by Statistics Canada.

This paper stresses the special role of multinational headquarters in corporate profit shifting strategies. Using a large panel of European firms, we show that multinational enterprises (MNEs) are reluctant to shift profits away from their headquarters even if these are located in high-tax...

This paper discusses the Canadian experience in the early 1980s with tax incentives for R&D.It presents some issues concerning the efficiency and cost effectiveness of the various government tax incentives in stimulating R&D.

In May 1985, Canada's Minister of Finance and the President of the United States each put forward a proposal for reforming his country's corporate income tax system. Both proposals called for a broadening of the tax base and the elimination of investment tax credits. The U. S. proposal also...