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Formulary apportionment is an intensively debated mechanism for allocating tax base within multinational groups. Systems under which the formula is identical in all jurisdictions and systems under which jurisdictions can determine the weights on the formula factors individually can be observed....
Persistent link: https://www.econbiz.de/10011334018
Formulary apportionment is an intensively debated mechanism for allocating tax base within multinational groups. Systems under which the formula is identical in all jurisdictions and systems under which jurisdictions can determine the weights on the formula factors individually can be observed....
Persistent link: https://www.econbiz.de/10010484873
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rarely use models and metrics to estimate their exposure to tax risk. In this paper I propose a framework for multinational … enterprises to deal with transfer pricing risk, i.e. the risk of incurring income adjustments and penalties as intercompany prices … fall out of the arm's length range. We'll approach the issue from an a-priori perspective, by developing a risk model for …
Persistent link: https://www.econbiz.de/10013055175
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This article analyzes profit taxation according to the arm's length principle in a new model where heterogeneous firms sort into foreign outsourcing. We show that multinational firms are able to shift profits abroad even if they fully comply with the tax code. This is because, in equilibrium,...
Persistent link: https://www.econbiz.de/10009375749
This note identifies profit shifting in response to cross-countrydifferences in corporate tax rates as a source of productivitymismeasurement. To quantify the magnitude of mismeasurement, theprofit-shifting effect is isolated from other possible effects ofcorporatetax rates changes on real...
Persistent link: https://www.econbiz.de/10011304391