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Transfer Pricing or Formula Apportionment? Tax-Induced Distortions of Multinationals' Investment and Production Decisions
Martini, Jan T.; Niemann, Rainer; Simons, Dirk - 2021
For mitigating the problems of transfer pricing formula apportionment (FA) is discussed intensively. However, FA could even be more harmful than transfer pricing because income shifting would require changing economic decisions instead of just taking advantage of accounting options. We analyze...
Persistent link: https://www.econbiz.de/10013317018
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Tax Revenue Losses Through Cross-Border Loss Offset : An Insurmountable Hurdle for Formula Apportionment?
Mardan, Mohammed - 2017
-border loss offset inherent to formula apportionment. In the medium run, in which only firms can adjust their strategies, tax …, contrary to output factors, input factors provide an insurance against tax revenue shortfalls due to loss-making affiliates …
Persistent link: https://www.econbiz.de/10012960117
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Corporate Income Taxation of Multinationals and Fiscal Equalization
Liesegang, Caterina - 2009
This paper investigates the effect of fiscal equalization on the efficiency properties of corporate income tax rates chosen by symmetric countries in a Nash tax competition game under the taxation principles of Separate Accounting and Formula Apportionment. Fiscal equalization ensures efficiency...
Persistent link: https://www.econbiz.de/10013157189
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Corporate Income Taxation of Multinationals and Unemployment
Eichner, Thomas; Runkel, Marco - 2021
Within a two-country model with involuntary unemployment, this paper investigates corporate income taxation under separate accounting versus formula apportionment. In contrast to separate accounting, under formula apportionment the corporate tax policy causes a fiscal externality which goes back...
Persistent link: https://www.econbiz.de/10013317278
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Thin Capitalization Rules and Multinational Firm Capital Structure
Blouin, Jennifer - 2014
This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital structure of the foreign affiliates of US multinationals. We construct a new data set on thin capitalization rules in 54 countries for the period 1982-2004. Using confidential...
Persistent link: https://www.econbiz.de/10013055986
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Cross-Border Loss Offset Can Fuel Tax Competition
Haufler, Andreas - 2013
Following recent court rulings, cross-border loss compensation for multinational firms will likely be introduced, at … cross-border loss compensation is likely to intensify tax competition when, following current international practice, the … parent firm's home country bases the tax rebate for a loss-making subsidiary on its own tax rate. In equilibrium, tax revenue …
Persistent link: https://www.econbiz.de/10013087272
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Multijurisdictional Firms and Governments' Strategies Under Alternative Tax Designs
Gerard, Marcel - 2021
interjurisdictional loss-offset, this paper investigates a reform of multijurisdictional enterprises taxation, a move from Separate …
Persistent link: https://www.econbiz.de/10013318282
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Tax Neutrality : Illusion or Reality? The Case of Entrepreneurship
Kanniainen, Vesa - 2008
This paper shows that taxes which are understood to be neutral with respect to the marginal investment decisions may be distortionary with respect to entrepreneurial decisions. In particular, we apply an intertemporal model to show that a comprehensive income tax is distortionary unless all...
Persistent link: https://www.econbiz.de/10012771817
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Consequences of the New UK Tax Exemption System : Evidence from Micro-Level Data
Egger, Peter H. - 2012
Until 2009, the United Kingdom operated a system of worldwide taxation. Taxation of foreign income was deferred until repatriated as dividends, leaving UK-owned multinational firms the possibility of avoiding UK taxation by delaying dividend payments and keeping earnings abroad. In 2009, the UK...
Persistent link: https://www.econbiz.de/10013100015
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The Role of the Corporate Income Tax as an Automatic Stabilizer
Buettner, Thiess - 2009
This paper analyses the effectiveness of the corporate income tax as an automatic stabilizer. It employs a unique firm-level dataset of German manufacturers combining financial statements with firm-specific information about credit market restrictions. The results show that approximately 20 per...
Persistent link: https://www.econbiz.de/10013156033