CCCTB 4 EU? SA vs. FA w/ FTA

Files in This Item:
File Description SizeFormat 
WP12_24.pdf384.03 kBAdobe PDFDownload
Title: CCCTB 4 EU? SA vs. FA w/ FTA
Authors: Davies, Ronald B.
Permanent link: http://hdl.handle.net/10197/3879
Date: Oct-2012
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
Keywords: Vertical FDI;Common consolidated tax base;Formula apportionment
Subject LCSH: Corporations--Taxation--European Union countries
Investments, Foreign--European Union countries
Apportionment
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

Show full item record

Google ScholarTM

Check


This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.