Designing and Implementing a Destination-Based Corporate Tax

De la Feria, Rita and Michael P. Devereux (2014) Oxford University Centre for Business Taxation WP 14/07. [2013] The current international tax system based upon the principles of source and residence is no longer suited to a globalised world economy, and the fundamentals of the international tax system need to be re-examined. An R+F basedContinue reading “Designing and Implementing a Destination-Based Corporate Tax”

UK corporation tax deters corporate headquarters from locating in the UK

Headquarter Relocations and International Taxation Johannes Voget This paper examines the extent of international headquarter relocations worldwide. Within a decade, about 6 percent of all multinationals relocate their headquarter to another country. The existence of a tax avoidance motive for headquarter relocations is tested. I find that the likelihood of relocating headquarters increases in theContinue reading “UK corporation tax deters corporate headquarters from locating in the UK”

UK Government’s corporation tax proposals could damage the UK’s competitiveness

Taxing Foreign Profit: Economic Principles and Feasibility Michael P. Devereux This paper reviews economic principles for optimality of the taxation of international profit, from both a global and national perspective. It argues that for systems based on residence or source, nothing less than full harmonisation across countries can achieve global optimality. The conditions for nationalContinue reading “UK Government’s corporation tax proposals could damage the UK’s competitiveness”

The Direct Incidence of Corporate Income Tax on Wages

Wiji Arulampalam, Michael P. Devereux and Giorgia Maffini European Economic Review 56.6, 1038-1054. [2007] Abstract A stylised model is provided to show how the direct effect of corporate income tax on wages can be identified in a bargaining framework using cross-company variation in tax liabilities, conditional on value added per employee. Using data on 55,082Continue reading “The Direct Incidence of Corporate Income Tax on Wages”

Common Consolidated Corporate Tax Base: large countries revenue would rise under the EU’s proposals

The effects of EU formula apportionment on corporate tax revenues Michael P. Devereux and Simon Loretz The European Commission is currently pursuing a proposal to introduce a “common consolidated corporate tax base” (CCCTB).  The proposal is that a company operating in more than one country within the EU could declare only its EU-wide profit.  ThatContinue reading “Common Consolidated Corporate Tax Base: large countries revenue would rise under the EU’s proposals”

Who Ultimately Bears the Burden of Greater Non-Wage Labour costs?

Azémar, Céline and Rodolphe Desbordes University of Glasgow Working Paper. [2009] It is commonly believed that globalisation introduces tax competition as countries reduce tax rates to attract inward investment.  This is supported by evidence of falling corporation at rates in the EU and elsewhere.  But it is contradicted by evidence from the same countries ofContinue reading “Who Ultimately Bears the Burden of Greater Non-Wage Labour costs?”

Tax competition in income tax as well as corporation tax

Competition in corporate and personal income taxation Peter Egger, Michael Pfaffermayr and Hannes Winner The academic evidence for competition between countries in setting corporation tax rates is well established. But until now, there have been no studies considering whether there is competition in other taxes. The project tests the hypothesis that there is also competitionContinue reading “Tax competition in income tax as well as corporation tax”

Corporate Tax Policy and Unemployment in Europe: An Applied General Equilibrium Analysis

Leon Bettendorf, Albert van der Horst and Ruud A. de Mooij The World Economy,1319-47. [2007] Abstract This paper analyses the impact of corporate taxes on structural unemployment, using an applied general equilibrium model for the European Union. We find that the unemployment and welfare effects of corporate taxes differ considerably among European countries. The magnitudeContinue reading “Corporate Tax Policy and Unemployment in Europe: An Applied General Equilibrium Analysis”

Profit shifting within the EU: evidence from Germany

Profit Shifting in the EU: Evidence from Germany Alfons Weichenreider University of Frankfurt & CESifo A large part of government policy making with respect to international taxes on business is devoted to identifying where profit is located,and preventing excessive shifting of profits between jurisdictions. A number of recent academic papers have appeared recently whichhave attemptedContinue reading “Profit shifting within the EU: evidence from Germany”

Do non-profit taxes affect the location of economic activity? Evidence from the EU

The Impact of Non-Profit Taxes on Foreign Direct Investment: Evidence from German Multinationals Thiess Buettner and Georg Wamser Ifo Institute and Ludwig Maximilian University The vast majority of economics research on the impact of taxes on the behaviour of multinational firms has focused on the role ofcorporate income taxes. This is for sound theoretical reasons;Continue reading “Do non-profit taxes affect the location of economic activity? Evidence from the EU”