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The OECD Proposals for Reforming Corporate Tax – A Plan with Undesirable Side Effects?

Author

Listed:
  • Pascal Saint-Amans
  • Clemens Fuest
  • Joachim Englisch
  • Deborah Schanz
  • Andreas Oestreicher
  • Nadine Riedel
  • Pola Schneemelcher
  • Wolfgang Schön
  • Luzius Cavelti
  • Christian Jaag

Abstract

The business models of the big internet companies like Google, Apple, Facebook, and Amazon allow them to offer services in countries where they have no physical presence and no employees. However, according to current international tax regulations, a physical presence is often a prerequisite for levying taxes in a country. This has led to demands to reform the taxation of multinational corporations. In fall 2019, the OECD presented a proposal for a uniform approach to modernizing international taxation. Is the concept convincing and can it be put into practice? Should international corporate taxation be more closely aligned with the place where value is created? How will tax revenue change, and how will it be redistributed? Who will lose, and who will win?

Suggested Citation

  • Pascal Saint-Amans & Clemens Fuest & Joachim Englisch & Deborah Schanz & Andreas Oestreicher & Nadine Riedel & Pola Schneemelcher & Wolfgang Schön & Luzius Cavelti & Christian Jaag, 2020. "The OECD Proposals for Reforming Corporate Tax – A Plan with Undesirable Side Effects?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(03), pages 03-32, March.
    • Handle: RePEc:ces:ifosdt:v:73:y:2020:i:03:p:03-32
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    References listed on IDEAS

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    More about this item

    Keywords

    Multinationales Unternehmen; Internationales Steuerrecht; Internationale Unter-nehmensbesteuerung; Betriebliche Wertschöpfung; Steuervermeidung; OECD-Staaten;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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