tax-motivated transfer mispricing in real goods. First, transfer mispricing increases substantially when taxation of …This paper employs unique data on export transactions and corporate tax returns of UK multinational firms and finds … low-tax jurisdictions. Second, transfer mispricing increases with a firm's R&D intensity. Third, tax-motivated transfer …

The standard tax theory result that investment should not be distorted is based on the assumption that profits are … locally bound. In this paper we analyze the optimal tax policy when firms are internationally mobile. We show that the optimal … policy response to increasing firm mobility may be taxation, subsidization or non-distortion of investment depending on …

This paper analyzes the relevance of firm losses for tax revenues and welfare when switching from separate accounting … to a system of tax base consolidation with formula apportionment. We find that a system change unambiguously decreases … tax revenues in the short run, in which neither firms nor governments can adjust their behavior, due to the cross …

from a tax haven, multinationals can shift income out of host countries through the interest rates they charge and the … amount of debt for which interest is tax deductible (safe harbor rules) are inferior to rules that limit the ratio of debt … interest to pre-tax earnings (earnings stripping rules), even if a safe harbor rule is used in conjunction with an earnings …

This paper investigates replacing separate taxation by consolidation and formulary apportionment in a Bottom … jurisdictions or by some of them, while tax rates remain within the competence of each jurisdiction. The paper sets forth the … conditions for the reform to be social welfare enhancing, while not increasing tax competition. Among them, the formula should …

tax by adopting a crediting system vis-à-vis the rest of the world …In 2001, the European Commission proposed replacing the current system of taxation of multinational companies by the … taxation of a consolidated base, computed at the level of all the European entities of a multijurisdictional enterprise, and …

understand why tax systems look the way they look. Finally, we exploit a database of reforms in labor taxation in the European …There is often a gap between the prescriptions of an 'optimal' tax system and actual tax systems, some of which can be … reviews the political economics literature on tax systems and reforms to see whether political mechanisms allow us to better …

This paper argues that profit-shifting activities of multi-jurisdictional enterprises (MJE) are maintained under a tax … separate un-consolidated firms for tax purposes if intra-group tax-rate differences, and thereby potential gains from profit …-shifting, are large. We test this prediction using confidential firm-level tax-return data for the local business tax in Germany …

Conducted in a framework which embodies tax-shifting opportunities, risk of losses and possibility of … interjurisdictional loss-offset, this paper investigates a reform of multijurisdictional enterprises taxation, a move from Separate … enterprises and authorities. Under Separate Accounting, tax-shifting opportunities reduce investment in the lower …

-based taxation and approximating tax rates. The strategy starts with dual income taxation, proceeds with final source withholding …This paper surveys and evaluates the corporation tax (CT) systems of the Member States of the European Union on the … taxes and rate approximation, and is made complete by comprehensive business income taxation. Common base taxation, if …