CCCTB 4 EU? SA vs. FA w/ FTA

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Title: CCCTB 4 EU? SA vs. FA w/ FTA
Authors: Davies, Ronald B.
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Date: Oct-2012
Online since: 2012-10-16T16:24:55Z
Abstract: Since its conception, some within the European Union have expressed concerns over the ability of multinationals to avoid taxation by undertaking transfer pricing to shift profits towards low tax locations. These concerns have been growing, leading to a renewed call for a common consolidated corporate tax base wherein profits are allocated to nations according to a formula rather than firms’ internal prices. This paper analyzes the merits of such a shift in taxation. In particular, it is shown that, given tax rates, implementing formula apportionment can result in greater tax revenues and less intense tax competition particularly for lower trade barriers. However, this is not always the case and depends on parameter values, including those describing the extent of economic integration.
Funding Details: Not applicable
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP12/24
Keywords: Vertical FDICommon consolidated tax baseFormula apportionment
Subject LCSH: Corporations--Taxation--European Union countries
Investments, Foreign--European Union countries
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Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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