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Incentive Effects of Foreign Tax Credits on Multinational Corporations

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  • Altshuler, Rosanne
  • Fulghieri, Paolo

Abstract

Excess credits and tax-credit carryforwards affect corporations' investment in foreign subsidiaries. This study examines import and export neutrality, excess foreign tax credits created by TRA '86, and the tax consequences of dividend remittances.

Suggested Citation

  • Altshuler, Rosanne & Fulghieri, Paolo, 1994. "Incentive Effects of Foreign Tax Credits on Multinational Corporations," National Tax Journal, National Tax Association;National Tax Journal, vol. 47(2), pages 349-361, June.
    • Handle: RePEc:ntj:journl:v:47:y:1994:i:2:p:349-61
    DOI: 10.1086/NTJ41789072
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    References listed on IDEAS

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    1. Jack M. Mintz, 1988. "An Empirical Estimate of Corporate Tax Refundability and Effective Tax Rates," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(1), pages 225-231.
    2. Rosanne Altshuler & Alan J. Auerbach, 1990. "The Significance of Tax Law Asymmetries: An Empirical Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(1), pages 61-86.
    3. Hartman, David G., 1985. "Tax policy and foreign direct investment," Journal of Public Economics, Elsevier, vol. 26(1), pages 107-121, February.
    4. Alan J. Auerbach, 1979. "Wealth Maximization and the Cost of Capital," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(3), pages 433-446.
    5. Leechor, Chad & Mintz, Jack, 1993. "On the taxation of multinational corporate investment when the deferral method is used by the capital exporting country," Journal of Public Economics, Elsevier, vol. 51(1), pages 75-96, May.
    6. Giovannini, Alberto & Hubbard, R. Glenn & Slemrod, Joel (ed.), 1993. "Studies in International Taxation," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226297019, December.
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    Cited by:

    1. Altshuler, Rosanne & Grubert, Harry, 2003. "Repatriation taxes, repatriation strategies and multinational financial policy," Journal of Public Economics, Elsevier, vol. 87(1), pages 73-107, January.
    2. James R. Hines, Jr., 1997. "Taxed Avoidance: American Participation in Unsanctioned International Boycotts," NBER Working Papers 6116, National Bureau of Economic Research, Inc.
    3. Udo Broll & Kit Wong, 2006. "Multinationals, Hedging, and Capital Structure under Exchange Rate Uncertainty," Open Economies Review, Springer, vol. 17(1), pages 103-114, January.
    4. Frank Barry, 2019. "Aggressive Tax Planning Practices and Inward-FDI Implications for Ireland of the New US Corporate Tax Regime," The Economic and Social Review, Economic and Social Studies, vol. 50(2), pages 325-340.

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