Tax Competition

Tax Competition Michael P. Devereux Oxford University Centre for Business Taxation Summary: Corporation tax rates in OECD countries have been falling for the last three decades. This has widely been interpreted as the result of competition between governments to attractboth real economic activity and taxable income. And such a view is supported by some governmentContinue reading “Tax Competition”

The effect of taxes on foreign direct investment: a survey of the empirical evidence

The effect of taxes on foreign direct investment: a survey of the empirical evidence Johannes Voget University of Mannheim Summary: There has been a considerable amount of economics research into the impact of taxes on multinational companies. The main issuesexamined have been the impact on location choice, investment, financial policy and the location of profit.Continue reading “The effect of taxes on foreign direct investment: a survey of the empirical evidence”

Who bears the burden of corporate income taxation?

Who bears the burden of corporate income taxation? Clemens Fuest Centre for European Economic Research(ZEW) and University of Mannheim Summary The question of who bears the burden of the corporate income tax is an important policy question, and views about the right answer differ widely. One view is that the corporate tax is borne byContinue reading “Who bears the burden of corporate income taxation?”

Quantifying International Tax Avoidance:A Review of the Academic Literature

Quantifying International Tax Avoidance:A Review of the Academic Literature Nadine RiedelUniversity of Bochum Summary: This paper provides a brief review of the academic literature that assesses the quantitative importance of tax avoidance behaviour of multinational entities (MNEs) by means of income shifting from high-tax to low-tax affiliates. Existing studies unanimously report evidence in line withContinue reading “Quantifying International Tax Avoidance:A Review of the Academic Literature”

Destination-Based Cash Flow Taxation

Destination-Based Cash Flow Taxation Michael Devereux Oxford University Centre for Business Taxation Summary: This paper summarises the concept and properties of a destination-based cash-flowtax (DBCFT). In principle, a DBCFT has several highly attractive properties: it does notdistort the scale and location of investment, assures neutral treatment of debt and equity as sources of finance, isContinue reading “Destination-Based Cash Flow Taxation”

The impact of worldwide vs territorial taxation on the location of assets and the scale of investment: A survey of the empirical evidence

The impact of worldwide vs territorial taxation on the location of assets and the scale of investment: A survey of the empirical evidence Martin Simmler University of Oxford Centre for Business Taxation Summary: Most countries have territorial corporate tax regimes and thus exempt repatriations of dividends from foreign subsidiaries from parent level taxation. In contrast,Continue reading “The impact of worldwide vs territorial taxation on the location of assets and the scale of investment: A survey of the empirical evidence”

Tax incentives for R&D

Tax incentives for R&D Irem Guceri University of Oxford, Centre for Business Taxation Today, many countries such as the US, UK, France, China and Korea provide generous tax incentives for research and development (R&D) to innovative firms. These incentives can be in the form of tax credits, tax deductions, cash refunds for companies without taxableContinue reading “Tax incentives for R&D”

Economic Theory of the Optimal Taxation of Multinational Profit

Economic Theory of the Optimal Taxation of Multinational Profit Michael Devereux Oxford University Centre for Business Taxation Summary: This paper summarises the extensive literature on the optimal tax treatment of international investment, drawing out implications for the optimal taxation of the profit of multinational companies. The aim of taxing multinational profit is taken as given.Continue reading “Economic Theory of the Optimal Taxation of Multinational Profit”