Corporate tax systems and cross country profit shifting

2000 ◽  
Vol 52 (2) ◽  
pp. 306-325 ◽  
Author(s):  
A Haufler
Keyword(s):  
Corporate Tax ◽  
Profit Shifting ◽  
Cross Country ◽  
Tax Systems

scholarly journals Benchmarking Marketing Intangibles: Need for Coordinated Transfer Pricing Regimes

2017 ◽  
Vol 3 (2) ◽  
Author(s):  
Lakshana Radhakrishnan
Keyword(s):  
Transfer Pricing ◽  
Tax Policies ◽  
Profit Shifting ◽  
International Consensus ◽  
Effective Implementation ◽  
Cross Border ◽  
Tax Regimes ◽  
Cross Country ◽  
Tax Systems ◽  
National Tax

Tax competitive policies can be effective in cases of a collaborated cross-border effort with international consensus on minimum thresholds and mechanisms for cross-country cooperation. However, aggressive uncoordinated tax competitiveness destroys value and shrinks the growth and prosperity of the industry. Hence, there is a need for tax certainty and common standards in international transfer pricing. The OECD has provided a framework for countries to move towards universal tax regimes that have common tax policies and coordinated implementation systems. This paper highlights the issue of AMP (advertising, marketing and promotion) costs in transfer pricing and seeks to establish the need for coordination among national tax systems. Ensuring consistency among the tax policies of the world’s nations is important for preventing instances of BEPS (base erosion and profit shifting) that are the products of the gaps between elaborately drafted and extremely complicated tax legislations. Creation of universal tax principles and their effective implementation is the only solution to this problem.

Fiscally Responsible Businesses as a Result of COVID-19 Pandemic Shock

2022 ◽  
pp. 161-192
Author(s):  
Cristina Raluca Gh. Popescu ◽  
Jarmila Duháček Šebestová
Keyword(s):  
Tax Evasion ◽  
Tax Reform ◽  
Global Level ◽  
Corporate Tax ◽  
Profit Shifting ◽  
Tax Havens ◽  
Tax Systems ◽  
And Behaviors ◽  
Financial Transactions ◽  
Global Initiatives

The COVID-19 pandemic and COVID-19 crisis represent impressive motivating forces for advancement, change, evolution, and improvement at a global level. The study focuses on the OECD latest developments in international tax reform work on base erosion and profit shifting (BEPS) in the courageous attempt to promote novel global initiatives for responsible tax and to support ambitious global actions for responsible tax principles. The results show the need to establish fiscally responsible businesses as a result of COVID-19 pandemic shock, thus taking back control of countries' tax systems by putting an end to corporate tax evasion and tax havens. The findings address the importance of being in line with tax principles, encouraging responsible financial transactions and behaviors.

Equilibria and Location Choice in Corporate Tax Regimes

2017 ◽  
Vol 47 (2) ◽  
pp. 433-458 ◽  
Author(s):  
Ben J. Niu
Keyword(s):  
Location Choice ◽  
Corporate Tax ◽  
Policy Makers ◽  
Academic Literature ◽  
Mixed Support ◽  
Plausible Model ◽  
Tax Regimes ◽  
Key Factor ◽  
Cross Country ◽  
The Impact

This article considers the impact of preferential, base-specific taxation on equilibrium revenues. While policy makers have argued that it generates a prisoner’s dilemma result, there is mixed support in the academic literature. Using a more plausible model with asymmetric base elasticities and heterogeneity of both firms and countries, I find that preferential taxation can generate greater revenues if countries exhibit sufficient productivity and/or population asymmetry. It is also less distortionary except in cases where moving costs are fully deductible. Allowing for noncorrelated, cross-country profits is the key factor as it generates base expansion effects.

G20 countries will adopt new corporate tax accord

2015 ◽  
Keyword(s):  
National Level ◽  
Tax Avoidance ◽  
Tax Treaties ◽  
Corporate Tax ◽  
Profit Shifting ◽  
Content Type ◽  
Major Threat ◽  
The Eu

Significance The rulings come as the EU advances legislation to increase transparency on corporate tax rulings and after the G20 on October 9 endorsed the new OECD Base Erosion and Profit Shifting (BEPS) framework for countering corporate tax avoidance. Impacts These EU rulings suggest similar decisions are imminent involving Apple in Ireland and Amazon in Luxembourg. The rulings will inspire further challenges to similar arrangements; they are the major threat to similar policies. Most BEPS measures will require changes to bilateral tax treaties and could face national-level delays or rejections. Monitoring of BEPS implementation will commence, but compliance will be voluntary and thus limited.

scholarly journals Zinsbereinigung des Eigenkapitals im internationalen Steuerwettbewerb – Eine kostengünstige Alternative zu “Thin Capitalization Rules”?

2009 ◽  
Vol 58 (1) ◽  
pp. 93-126
Author(s):  
Dominik Rumpf
Keyword(s):  
Balance Sheet ◽  
Financial Structure ◽  
Strong Impact ◽  
Negative Effects ◽  
Corporate Tax ◽  
Profit Shifting ◽  
Tax Revenues ◽  
Transfer Prices ◽  
The Impact ◽  
Thin Capitalization

Abstract This paper investigates the impact of an Allowance for Corporate Equity (ACE) on the expected tax revenues and on the international tax competition. Beginning with an analysis of the relation between the rate of return on equity and the interest rate on the capital market, this paper figures out some effects which cause surprisingly low net assets used to calculate the ACE. This yields to a strong impact on the financial structure of multicorporate enterprises although there is only a moderate decline in tax revenues. Focusing profit shifting via transfer prices, the ACE has no positive effect. Only a cut of the corporate tax rate is useful in this context. The relevance of these results is additionally affirmed by using the statistical data published by the “Deutsche Bundesbank”, the central bank of Germany, which includes an aggregated corporate balance sheet. All in all, the ACE can be seen as an alternative to the new German thin capitalization rules applied in 2008 (“Zinsschranke”). Additionally, the low tax revenue losses constitute a new advantage for the ACE as a blueprint for corporate tax reforms. This is also interesting because an ACE could reduce the negative effects on the financial structure of firms which accompanies the implementation of a low withholding tax on interests.

Cross-country Emission Tax Effect of Mergers

2020 ◽  
pp. 097674792095809
Author(s):  
Mahelet G. Fikru ◽  
Luis Gautier
Keyword(s):  
Policy Change ◽  
The Other ◽  
Emission Tax ◽  
Profit Shifting ◽  
Other Hand ◽  
Cross Country ◽  
Tax Effect ◽  
Polluting Firms ◽  
Regulatory Landscape

Recent studies show that mergers among polluting firms could affect the regulatory landscape of the industry and trigger a policy change. Using a two-country model, this study examines the effect of a merger size, as measured by the number of merging firms, on the optimal emission tax of another country. We show that, if pollution damages are not too large, a decline in the size of a merger reduces production and profits in that country, which affords a larger tax in the other country due to smaller profit-shifting concerns. On the other hand, if pollution damages are extremely large, a reduction in the size of a merger in one country reduces production in that country, but it also reduces production and emissions in the other country. Thus, the latter can induce a smaller emission tax. The change in the emission tax in both scenarios is consistent with cooperative outcomes.

scholarly journals Cross-Country Evidence on the Role of Independent Media in Constraining Corporate Tax Aggressiveness

2016 ◽  
Vol 150 (3) ◽  
pp. 879-902 ◽  
Author(s):  
Kiridaran Kanagaretnam ◽  
Jimmy Lee ◽  
Chee Yeow Lim ◽  
Gerald J. Lobo
Keyword(s):  
Corporate Tax ◽  
Tax Aggressiveness ◽  
Cross Country ◽  
Independent Media
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