Taxes, Transfer Pricing, and The Multinational Enterprise

2009 ◽  
Author(s):  
Lorraine Eden
Keyword(s):  
United States ◽  
Multinational Enterprises ◽  
Transfer Pricing ◽  
Multinational Enterprise ◽  
The United States ◽  
International Taxation ◽  
Complex Issue ◽  
Daunting Task ◽  
National Governments

For more than ten years now, transfer pricing has been the top international taxation issue faced by multinational enterprises (MNEs). This article aims to outline, for the reader, the complex issue of transfer pricing, as seen by MNE managers and by governments faced with the daunting task of taxing business profits. The article is organized as follows. First, it briefly discusses transfer pricing from the MNE's perspective and the problems that this raises for national governments. It then reviews the basic rules of international taxation as they apply to MNE profits. The specific rules and procedures that apply to transfer pricing, as practiced in the United States and recommended by the OECD, are then outlined. It concludes with a discussion of unresolved problems that are likely to plague transfer pricing over the next few years.

Comparative Environmental Federalism: Subsidiarity and Central Regulation in the United States and China

2017 ◽  
Vol 6 (3) ◽  
pp. 531-549 ◽  
Author(s):  
Huiyu Zhao ◽  
Robert Percival
Keyword(s):  
United States ◽  
Environmental Protection ◽  
Environmental Governance ◽  
The United States ◽  
Conclusive Evidence ◽  
State Governments ◽  
Race To The Bottom ◽  
Environmental Laws ◽  
National Governments ◽  
National Environmental

AbstractThe proper division of responsibility for environmental protection between national and state governments has long been the subject of fierce debate. During the 1970s the United States Congress decided to shift the most important environmental responsibilities from state governments to the federal government. The main reason for this decision was to prevent a ‘race to the bottom’ in that states competing for industries could otherwise be lax in implementing and enforcing federal environmental standards. Yet, some scholars have argued that there could just as easily be a ‘race to the top’ among states as they compete to attract people and businesses concerned with environmental protection. China, in turn, is plagued with severe air and water pollution and soil contamination, which is attributed largely to ineffective enforcement of its national environmental laws. This article investigates whether China’s experience confirms the race-to-the-bottom theory. It demonstrates that devolution of responsibility for environmental protection to lower levels of government tends to result in lax implementation and enforcement of national environmental laws, particularly where national governments also create strong incentives for economic growth. It concludes that China’s highly devolved system of environmental governance is consistent with this theory, even if it does not provide conclusive evidence of its correctness.

scholarly journals A Raw Deal: Conflicts Over Tribal Sovereignty and Casino Proliferation

Elements ◽  
2009 ◽  
Vol 5 (1) ◽  
Author(s):  
Tim Mooney
Keyword(s):  
United States ◽  
American Indian ◽  
The United States ◽  
Tribal Sovereignty ◽  
Indian Gaming ◽  
The Federalist ◽  
Bargaining Position ◽  
Indian Tribes ◽  
To Come ◽  
National Governments

Federalism has played an important role in the explosion of legalized gambling in the United States in the last two decades. Indian gaming, in particular, has challenged state and national governments to come to terms with the place of American Indian tribes within the federalist system and organize a meaningful framework for the expansion of gaming on tribal lands. Now largely controlled by a federal statutory framework, Indian gaming has left states in a subordinate position in negotiating the establisment of major casino enterprises within their own borders. Confusion in states' rights during negotiations has further weakened their bargaining position, leading to extensive tribal casino development. The cooperation between states and tribes and states and casino corporations have facilitated casino proliferation throughout the United States, a trend that appears destined to contiue until the market is fully saturated.

scholarly journals Income Tax Complexity Faced by Multinational Corporations: A Comparative Study of Canada, the United States, and Other Selected OECD Countries

2021 ◽  
Vol 69 (3) ◽  
pp. 745-790
Author(s):  
Susann Sturm
Keyword(s):  
United States ◽  
Multinational Corporations ◽  
Income Tax ◽  
Transfer Pricing ◽  
The United States ◽  
Oecd Countries ◽  
The Us ◽  
Tax Complexity ◽  
Medium Level ◽  
Foreign Corporations

This study examines the complexity of Canada's corporate income tax system from the perspective of multinational corporations and compares it with the complexity of the US system, also taking into account measures of complexity for 19 other member countries of the Organisation for Economic Co-operation and Development (OECD). The author finds that with regard to the Canadian tax code, the most complex laws are those on corporate reorganization, transfer pricing, and controlled foreign corporations, and with regard to the Canadian tax framework, the most complex areas are tax audits, tax-law enactment, and tax guidance. In comparison with other OECD countries, Canada is remarkably similar to the United States. Both countries have a medium level of overall complexity, and both have a more complex tax code but a less complex tax framework than other countries. However, a closer examination of the Canadian and US tax codes and tax frameworks reveals some significant differences in complexity levels, particularly in respect of certain tax laws.

scholarly journals The Double Irish and Dutch Sandwich tax strategies: Could a general anti-avoidance rule counteract the problems caused by the utilisation of these structures?

2021 ◽  
Author(s):  
◽  
Danielle Thorne
Keyword(s):  
United States ◽  
Income Tax ◽  
Multinational Enterprises ◽  
Current System ◽  
The United States ◽  
Tax System ◽  
Tax Havens ◽  
Intangible Resources ◽  
And Control ◽  
Tax Structures

<p>This paper analyses the Double Irish and Dutch Sandwich tax structures used by large multinational enterprises. These structures enable companies to shift significant profits to offshore tax havens through the use of wholly owned subsidiaries in Ireland and the Netherlands. Application of the New Zealand General Anti-Avoidance rule in s BG 1 of the Income Tax Act 2007 reveals that any attempt to counteract these structures would be highly fact dependent. The paper concludes that it would be possible to apply the rule, but that there would be practical difficulties in relation to enforceability of the Commissioner’s ruling. A similar result was reached when applying the United States General Anti-Avoidance rule. The attempted application of the General Anti-Avoidance rules reveals a fundamental flaw in the income tax system. That is, the inability of the current system to regulate and control intangible resources and technology based transactions.</p>

Part I The Conceptual Framework, 4 Jurisdiction and MNE Regulation

2021 ◽  
Author(s):  
Muchlinski Peter T
Keyword(s):  
United States ◽  
Conceptual Framework ◽  
International Law ◽  
Multinational Enterprises ◽  
The United States ◽  
Legal Basis ◽  
Regulatory Standards ◽  
Legal Jurisdiction ◽  
Extraterritorial Jurisdiction

This chapter investigates the legal basis for exercising extraterritorial jurisdiction over multinational enterprises (MNEs). The state’s exercise of extraterritorial jurisdiction rests on the international law rules relating to state jurisdiction. A state’s legal jurisdiction can be divided between the jurisdiction to prescribe laws, to adjudicate disputes and to enforce legal orders and judgments. This classification follows the traditional division of governmental authority between legislative, judicial and executive powers, though each branch of government can engage in any of the three. The chapter evaluates the three heads of jurisdiction in turn, relying to a large extent on US practice, which is the most developed in this field. In more recent years, not only the United States, but other global economic powers, have sought to avoid extraterritoriality conflicts though harmonization of regulatory standards and the development of cooperative regulatory structures.

Conclusion

2021 ◽  
pp. 242-248
Author(s):  
David Bosco
Keyword(s):  
United States ◽  
South China Sea ◽  
South China ◽  
The United States ◽  
Fundamental Change ◽  
Central Question ◽  
Regional Organizations ◽  
The World ◽  
Complex Hybrid ◽  
National Governments

The disagreement between China and the United States over maritime rights in the South China Sea has become the leading maritime point of friction. But that dispute is just one part of more fundamental change at work in how the world governs the oceans, one that has moved away from the idea of freedom of the seas. A central question is whether the UN Convention’s compromise on the oceans can endure. The Convention increased national sovereignty over parts of the oceans but also created mechanisms of international control. What emerged from that compromise is a complex, hybrid system of governance that relies on national governments but also a variety of international and regional organizations and international courts. Part of that compromise is a narrower version of freedom of the seas, but pressure from multiple directions is rendering even a limited version of that long-standing doctrine increasingly fragile.

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