-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 …

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 …

The importance of capital loss offset provisions in a world of risk is well documented in the tax literature. However … would be dissipated. In contrast, full loss offset would reduce that loss to approximately fourteen cents …

profit. Setting up a model that allows for profitable and loss-making affiliates of multinationals, we show that profit … shifting to a low-tax country as well as a loss-related, inverted-type of transfer pricing from the low-tax to the high …